It is not the golden rule of enterprise development and investment that all eggs cannot be placed in one basket. For now, although the SUV is hot, it will eventually become saturated, and the size of the sedan market is still huge. Abandoning the sedan is equivalent to giving up a stable profit growth point. In the long run, if Great Wall Motor wants to be bigger and stronger, it will not be enough to rely on SUVs in the market. From this point of view, Great Wall Motor needs a car to help.
Walker Wukong | AutoKol
At the Great Wall Motor Million Celebration, Chairman Wei Jianjun made a plan for the future of Great Wall Motor. One of the words made the author impressed: "The SUV does not reach the world's number one, never a car." Wei Jianjun further stated that Great Wall Motor strives to achieve the sales target of 2 million units by 2020, surpassing Land Rover and Jeep in scale, and is the world's number one.
The author believes that such rhetoric, issued from a relatively solid enterprise such as Great Wall Motor, shows Great Wall Motor's confidence in itself and in the future, but there is also helplessness. Such helplessness has already plagued Great Wall Motor for many years. Kind of helplessness is called a car.
Car, is the pain that Great Wall Motor can't say.
Anyone familiar with the Great Wall Motor knows that the Great Wall Motor started with a light truck and started the pickup truck. In just a few years, the pickup truck was the first in the country. After 2002, Great Wall Motor began to enter the SUV field and opened the Chinese economy. SUV first, its SUV products entered the top three in the national SUV market.
Since then, Great Wall Motor has almost stabilized the position of the domestic pickup truck and SUV industry boss. The success of the pickup truck gave birth to the birth of the SUV. After the success of the SUV, the car naturally became the new target of Great Wall Motor. At that time, the SUV was not as hot as it is now. The car was the absolute mainstream of the market at that time. Whether it was a joint venture brand or a self-owned brand, the focus of development was biased toward the car. Great Wall Motor naturally did not want to miss the market wave at that time, and the nightmare began.
Compared with the smooth sailing in the field of pickup trucks and SUVs, Great Wall's car road is very rough. From the earliest elves, cool bears, dazzling, and now to the C30 and C50, these car products have basically not escaped the fate of “discontinued productionâ€. Now the C50 is discontinued for sale. The Great Wall Motor really sells only the C30. The real reason for the survival of the C30 is that Great Wall Motors will build its own pure electric car C30EV based on it.
At the beginning, these car products were carrying the long-term car to make a large car category, and realized the wish of walking on multiple legs. But the end result was embarrassing. In fact, Great Wall Motor spent a lot of money in order to develop the car. The actual situation is also that it is not bad to analyze these models from the product force, and some even realized it in the same class. Beyond, this has nothing to do with the development of Great Wall Motor for many years and the accumulation of automotive technology. As for the reasons for the failure of the car, in my opinion, the problem is multi-faceted. Among them, the problems of Great Wall Motor itself also have market factors.
Great Wall Motors placed too high hopes on cars. After the success of pickup trucks and SUVs, Great Wall Motors naturally had full expectations for the sedan sector, so there were high demands on market expectations and profit expectations, which can be seen from their heavy investment at the time, but they ignored Market acceptance and the cruelty of market competition. It takes a certain amount of time for the market to accept a new brand or a new category. The success of pickup trucks and SUVs does not bring consumers recognition of their cars. In the short term, they have not achieved the expected goals. Great Wall Motors are not so much for cars. Patience.
The car strategy is wavering. The repeated setbacks did not allow Great Wall Motors to learn lessons, and the temptation from the sedan market did not completely let them die, so after that, Great Wall Motors also launched several sedan products, but all ended in failure. There is also a small episode. During the Shanghai Auto Show in April 2015, Wang Fengying, president of Great Wall Motor, said that “Great Wall Motor is currently in a product strategy adjustment period and will temporarily abandon the car business.†In September, Wei Jianjun, chairman of Great Wall Motors, said “The Great Wall never gave up the car business, and did not stop the car production.†It can be seen that inside the Great Wall Motor, there is no clear strategic plan for the car.
The fence of the joint venture is too tight. In the field of the hottest compact cars in China, it is basically a joint venture brand. Only Geely Emgrand EC7 and Changan Yidong are barely squeezed into the top 20 of the sales list, and the position is not so stable. The reason is that the joint venture brand is too strong in the car field, and the independent brand can't compete, and the Emgrand EC7 and Yidong can find a place, and more is based on time. After repeated failures, the car became a pain that the Great Wall Motor, which was expected to be too high and swayed, could not be said. Of course, this is also the pain of the collective brand.
Is it a good thing to benchmark Jeep?
For the benchmark Jeep and Land Rover, in my opinion, it is quite reliable, but there are still many risks. It is said that it is reliable because Great Wall Motor has been in the SUV field for many years, accumulated product development experience and related technical capabilities. The existing success also proves that Great Wall Motor is enough to make the SUV category bigger and stronger, plus The domestic SUV is just the vent, enough for the Great Wall Motor to take off in the wind.
But behind the Great Wall, there are still many difficulties to overcome. According to the plan of the Ministry of Industry and Information Technology, since 2016, China's passenger car fuel consumption standards have entered the fourth stage of “the most stringent in historyâ€. The average fuel consumption target for car companies in 2017 is 6.4L per 100 kilometers, to 2020. The average fuel consumption of passenger cars dropped to the fuel consumption limit of 5.0 liters, which will be very unfavorable for Great Wall Motors, which account for 95% of SUV production and sales. The policy push will lead to Great Wall Motor's product strategy basically based on fuel consumption regulations, which is a must for Great Wall Motor.
At present, Great Wall Motor's hot models H6 and H2 are aimed at the market below 150,000 yuan, and the capacity of this market is gradually becoming saturated, it is difficult to break through. The performance of the high-end models H8 and H9 of the Great Wall has always been unsatisfactory, and in contrast, Jeep has a relatively bright model in various segments. From this point of view, Great Wall Motors also needs to create sales in various segments. Model. For the high-end market, this responsibility will fall on the high-end brand WEY Wei Pai of the Great Wall. The specific effect is still to be tested by the market.
Does the Great Wall car still need to be a car?
It is reasonable to say that after the benchmarking of Land Rover and Jeep brands, Great Wall Motors will not need to make a car again, because these brands have no cars, but Great Wall Motor and Wei Jianjun are not completely dead, I guess the reasons for this may not be reconciled. You see Wei Jianjun's time node is "SUV does not reach the world's first, never do a car", then the Great Wall car may not carry too much pressure on the car, just to prove that they can.
It is not the golden rule of enterprise development and investment that all eggs cannot be placed in one basket. For now, although the SUV is hot, it will eventually become saturated, and the size of the sedan market is still huge. Abandoning the sedan is equivalent to giving up a stable profit growth point. In the long run, if Great Wall Motor wants to be bigger and stronger, it will not be enough to rely on SUVs in the market. From this point of view, Great Wall Motor needs a car to help.
The author believes that if Great Wall Motor really makes the SUV the world's number one, it may not be suitable for a car. At that time, it has been completely labelled, and it is difficult to break through in other models, although Wei Jianjun will SUV. The difference between a car and a car is described as the relationship between the taro, the flower roll and the bean bag, but even if it is the same, the taste is completely different from the crowd, just like Jaguar’s first SUV model, F-PACE, which sells. It has always been tepid. It is not a technical issue, but it is challenging consumers' inherent impression of a company. In a market environment like China, the difficulty is quite large.
In fact, Great Wall Motors has missed the best time to make a car. The best time to plant a tree is ten years ago, followed by the present, and the same is true for a car.
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