Great Wall Motor Retrograde New Energy


Wen Haochao Business Review, written by pineapple and edited by Yang Xuran.

  Alashan is definitely one of the hottest online celebrity producing areas in Tik Tok.

  It is "poetry and distance" in the eyes of cross-country enthusiasts. Every October, there will be a grand cross-country rally-Alashan Heroes’ Club. In 2019, the video of "Alashan Shake Shake" was played 40 million times in Tik Tok, and it was also searched by many media such as CCTV, Sina and Tencent.

  The cross-country culture of "sunset speeding" and "freedom and uninhibited" is completely on fire. It is not only the carnival of the brave, the meditation of the unruly, but also the second spring of the fuel car.

  "Great Wall Cannon", "Haval H6" and other vehicles frequently appeared in off-road vehicle competitions, which also made Great Wall Motor (SH: 601633), a 30-year-old car company from Baoding, once again fire.

  Since July this year, the Great Wall’s stock market has performed like a shot in the arm. In just half a year, its share price has risen from the 5-10 yuan range that it has maintained for five years to 37 yuan, more than tripling.


  Great Wall Motor’s Share Price Performance in May-December

  At home in the era of new energy vehicles, Great Wall Motor has stepped out of its own exponential growth curve and become a "traditional car enterprise" and "fuel vehicle".The benchmark for traditional fuel car companies to break through in the new energy era.

  What has Great Wall Motor experienced, which can represent the fuel vehicle to attack the market in the era of new energy explosion?

  From Baoding Wei Jianjun to Jack Wey

Wei Jianjun, a soldier who used to be unsmiling, is becoming a fashion person who embraces young people.

  At the shareholders’ meeting in 2015, when asked why Great Wall Motor did not emphasize marketing, Wei Jianjun, the chairman of the board of directors, frequently made golden sentences, saying, "It is unnecessary to produce cars because the production of wine can create a brand" and "No brand-new car products will be launched in the next 5-6 years".

  At that time, Wei Jianjun was still a resolute "soldier Wei Jianjun" and an unsmiling "Baoding Car God".

  However, this year, careful people will find that Wei Jianjun’s title has changed to "Jack Wey", showing a gentle and cordial smile frequently in front of the public media.

  From Baoding Car God to Jack Wey, Great Wall Motor has also transformed itself into aA "famous ghost talent" who loves hot spots and sucks traffic.

  At the Beijing Auto Show in 2020, the Great Wall appeared with a series of new models-the new ——SUV was named "Harvard First Love" and "Harvard Big Dog", the new pickup truck was called "Great Wall Gun" and "Tank", the new energy vehicles were "Euler Good Cat", "Black Cat" and "White Cat", and even the car-making technology platform included "Lemon" and "Tank".

  The Great Wall has tasted almost all the trendy marketing: the title of general manager of brand marketing has been changed to "Dean of Cats Research", and it has joined forces with Elvis Presley Radio, Warrior and other national trends in an attempt to set off a "cat culture"; Invite Shen Mengchen, Wang Han and other stars to sell cars live; Heavily calling on young people to launch the electric car racing and refitting competition ……………………………………………………………………………………………………………………………………………..

  All kinds of changes are pointing to the same clue-youthfulness. Behind this is the deep anxiety of this traditional car company.

  In 2011, Haval H6 made Great Wall Motor win the title of God in World War I: the sales volume broke through 10,000 in five months, 20,000 in two years, and 80,000 in five years. This record is also brilliant for the whole automobile industry.

  However, with the rise of Jilin Boyue, Changan CS75, Honda CR-V and other models, SUVs gradually shifted from the blue ocean to the red sea market, and Haval’s leading edge was weakening.


  Along with the silence, there are also company performance and stock price performance.Since 2017, the revenue growth rate of Great Wall has dropped sharply, and even slipped into the negative growth range. The decline in net profit is particularly rapid. In 2016, it was still a profit of 105 million, and by 2019 it was only less than 45 million. Its share price is halved, sliding from 10 yuan to 5 yuan.

  The 30-year-old Great Wall Motor’s solution to the "middle-aged crisis" is to set off a series of young reforms from products to marketing and management, which have been quite effective in less than one year.

  According to the latest data in November, the sales volume of Great Wall Motor has reached 122,600 units, a year-on-year increase of 27.6%.

  Among them, Haval H6, as a facade, sold 102,000 vehicles a month, accounting for 83% of the total sales, up 22.1% year-on-year, driving the market share back to more than 20%; Euler, a new energy vehicle, became a new force, with a sales volume of 11,600, a year-on-year increase of 414.7%; The Haval Big Dog, which just went on the market in September and is still in the production climbing period, has a monthly sales volume of 8,555 vehicles.

  As of the third quarter, Great Wall’s revenue was 621 million, down 0.69% year-on-year. According to the current trend, the annual growth rate will turn from negative to positive.

  Looking at the whole market, just over half of the winter in December, the spring of the auto market has come early.

  Reform meets a good opportunity

After the cold winter of the automobile industry cycle, the automobile sales in China are now recovering. Not only the Great Wall, but also a large number of car companies including Geely and SAIC have ushered in a rebound in performance and valuation.

  The rise of the Great Wall is not a case, and the whole vehicle sector is in a strong recovery.

  In April this year, with the improvement of epidemic prevention and control situation,The auto sector showed signs of recovery for the first time, ending a 21-month decline.Sales in that month increased by 5.9% year-on-year. Among passenger cars, SUV led the growth with a growth rate of 7.3%.

  Subsequently, the production and sales data increased for 8 consecutive months, which confirmed the trend of the automobile sector’s economic recovery. In November, China’s automobile sales all reached a new high in the year, with a year-on-year increase of 12.6%, among which passenger cars have maintained a growth rate of around 8% for five consecutive months.

  In such a recovery market,The performance of car companies has grown brilliantly, and valuations have ushered in repairs.

  Leading enterprises such as SAIC, GAC, Chang ‘an, Geely, etc. all had double-digit growth in sales performance in November. Changan and Great Wall, with SUV explosions CS75 and Haval H6, saw their sales growth rate of more than 20%.

  Judging from the performance of the capital market, the leading stock prices have ushered in a general increase. Since July, the share prices of SAIC and GAC have increased by about 50%.The share prices of Chang ‘an and Geely have doubled, while Great Wall Motor ranks first among traditional car companies with a high growth rate of 365%.


  On the other hand, in the contest of the new energy vehicle market, the performance of the Great Wall is also awesome.

  In the ranking of new energy small vehicles in November by Gaspar, the sales volume of Euler Black Cat ranked in the top three, with a year-on-year growth rate of 373%, second only to Wuling Hongguang and Tesla model 3.

  Except for Weilai, which went crazy, the growth rate of Great Wall’s share price even surpassed that of Tucki, Ideality and BYD in the second half of this year.

  So, why does the Great Wall stand out?

  Big explosion of niche market

Northwest China has become the most popular tourist destination, and Alashan has become a holy place for every SUV owner to visit, and the cross-country culture has exploded.

  Car enthusiasts in Zhihu sum up the advantages of SUV in this way: It’s like a man always wants to marry a wife who is beautiful, has long legs, can cook, keep house, has self-cultivation and other functions-SUV combines the high passability of off-road vehicles, the comfort of cars and the ability of long-distance raids, and integrates sports, leisure and business.

  And this is what they said about Haval H6, which won the SUV sales title for 10 years in a row: cheap big bowl is delicious, and the leather is durable without any serious injury. It can stretch your feet, has a large space, and the design is not ugly. It is also suitable for the whole family to go for an outing and occasionally pull goods on weekends.

  The multifunctional Haval H6 with an average price of 100,000 yuan has become a "hard currency" in the SUV market.Therefore, when the epidemic situation eased and the automobile market picked up in 2020, when SUV took the lead, Great Wall Haval bore the brunt.

  However, people have more expectations for the Great Wall fuel truck, which comes from the upgraded SUV with fire in off-road culture-Off-road vehicles and pickup trucks.

  Himalayan extreme cross-country, Luya International Championship, and the 60th anniversary of Everest measurement re-measurement. In 2020, the Great Wall Gun sponsored major events and made frequent appearances.

  When you open Baidu to search for the words "Tibet" and "off-road", you are greeted by off-road youths wearing sunglasses and jeans, sharing their "trip to western Hunan" and "experience in Tibet" among the blue sky and white clouds, often accompanied by Great Wall guns, tanks 300 or Harvard dogs-all of which are the off-road culture and brand sense that the Great Wall is trying to create.

  "For every two pickup trucks sold, one comes from the Great Wall". In July, the sales volume of Great Wall guns exceeded 20,000, exceeding 50% to take the market share; The luxury off-road tank 300 was newly launched on December 17th, and has achieved over 10,000 sales, exceeding the accumulated sales of more than 7,000 in herdsman in the first 11 months. The sales volume of affordable off-road vehicle Haval H9 in November increased by 17.9% month-on-month, ranking first among domestic medium and large off-road SUVs.

  Behind the popularity of several models, the capital market values not only the off-road field, but also the market space instigated by domestic brands, and it is also the field represented by this space and beyond the reach of new energy vehicles.

  In short:In the off-road culture, there is no room for new energy vehicles.

  The cruising range is limited, and the extreme climate environment will be greatly reduced; The battery can’t stand the impact of external force, rain and lightning, and it is easy to cause spontaneous combustion, self-explosion and short circuit; The great torque released instantly by stepping on the accelerator is easy to break through the grip of the tire, making it more difficult to get rid of extreme off-road difficulties …New energy vehicles are naturally insulated from off-road vehicles, which is an important function of vehicles, whether for practical use or entertainment;

  In addition, for many players, the fun of cross-country is the roar of motor, rotation, drift, take-off ….. all of which can’t be brought by an electric car without sound.

  Up to now, only one off-road vehicle in herdsman has been testing water and electricity, and it still adopts a hybrid device of oil and electricity. "Crossing no man’s land", no new energy vehicle has such confidence.

  Cross-country culture has brought fire to the Great Wall Tank 300 and the Great Wall Gun, and these two new cars, which are less than one year old, undoubtedly pinned the ambition of Great Wall Motor to get rid of the low-cost SUV market and cover the middle and high-end market.

  Is it a real explosion, or is it just a moment? This may also require consumers to verify with longer mileage and more user experience.But capital has long voted with its feet, occupied the pit early and made a choice.

  New energy catches female users

In 2015, the Great Wall increased by 16.8 billion yuan to develop new energy core technologies and complete vehicles, which ended in failure, but it was "unexpectedly" successful in 2020.

  Another new energy vehicle market opened up in the Great Wall, the success of Euler products is more attributed to the user positioning of "pleasing"-Female consumers.

  Prior to this, new energy vehicles either held high and fought like emerging car-making forces, and plunged huge sums of money into high-end fields, or were as low as dust and made into tool-based scooters.User markets such as women and urban white-collar workers have always lacked products with both appearance and high cost performance to meet the demand.

  The Euler series, with an average price of more than 70,000, fills the above gaps well. At the same price, the Euler model has longer battery life, more space and more fashionable appearance. According to an Euler car owner, Euler is mostly used by female white-collar workers, or the first car in a small family, or simply to occupy a new energy license.


  Euler focuses on the small car market.

  Combined with the new direct selling game of "live broadcast+group fight+e-commerce", Euler brought up a market by "cat culture".In November, Euler sold 11,600 vehicles, a year-on-year surge of 414.7%.

  However, the new energy layout of the Great Wall is not smooth sailing. As early as 2015, Great Wall had raised 16.8 billion yuan to develop new energy core technologies and complete vehicles, which ended in failure.

  In August 2018, Great Wall Motor announced the first generation of Euler under the heavy penalty of "double points" for excessive bicycle fuel consumption. At that time, BAIC, Geely and BYD’s new energy vehicles had already achieved results.

  The failure of new energy vehicles is in sharp contrast with the rapid rise of Euler today.

  Looking at the whole new energy vehicle market, the small low-end new energy vehicles represented by Wuling Hongguang mini and Great Wall Euler have turned red, which is closely related to the policy background of new energy vehicles going to the countryside, exemption from purchase tax and no-shake number.

  Small new energy vehicles priced at 60,000-150,000 yuan and positioned as "people’s scooter" have an overwhelming advantage in fuel vehicle equivalence, which accurately hits the market demand of young office workers.

  But with reference to historical experience,But the low end will meet the red sea.Haval H6, which is positioned in the low-end SUV market, will inevitably lose its advantage under fierce competition.

  By analogy, small new energy vehicles will also face more intense competition.

  At present, the average market share of small pure electric vehicles has reached 40%, and its main selling cities have gradually transitioned from first-and second-tier cities to sixth-tier cities.The small and micro car market, which meets the price demand but is difficult to meet the functional demand, will gradually turn from blue to red and start fierce competition.

  At that time, it is obviously not enough for Euler to only focus on the "cat" car market.

  This brand-new brand needs to build a more perfect product matrix from niche to mass, from price to function, from low-end to high-end, in order to resist the strong impact of competitors. But for the Great Wall, it is obviously not as comfortable as the days in the off-road vehicle.