Continuation of the Tale: The Rise of Great Wall Motor (second installment)
**Great Wall Motor's Journey to Success: A Focus on SUVs and New Energy Vehicles**
Great Wall Motor (GWM), a leading Chinese automaker, has made significant strides in the automobile industry, particularly in China, where its focus on SUVs and new energy vehicles (NEVs) has paid off handsomely.
The turning point came in 2010 with the introduction of the Haval H6, a mid-sized SUV/crossover that would become the best-selling Chinese SUV for years to come. With over three million units sold, the Haval H6 set a new standard for domestic SUVs[1].
Wei Jianjun, the leader of Great Wall, recognised the potential of the SUV market and decided to focus on this sector, rather than relying on copying designs from other brands. This strategic shift proved to be a masterstroke, as the Haval H6 catered to the burgeoning Chinese middle-class family market with its spacious interior and build quality that was considered above average for domestic models[1].
The Haval H6 quickly became a commercial success, dominating the Chinese SUV segment for 103 consecutive months. In December 2016, it set a record for single-month sales with 80,495 units sold, a record that still stands[1]. By 2024, GWM had sold over four million units of the H6 globally, making it the best-selling vehicle in the company's lineup[1].
This success allowed GWM to grow rapidly, increasing its net profit sevenfold in five years. It also motivated the company to focus almost entirely on SUVs, phasing out sedans and hatchbacks except for a few exceptions[3].
In 2017, Great Wall presented a third brand, WEY, positioned as the premium brand of the group. The same year, it also linked up with Hebei Yujie Vehicle Industry (Yogomo) to produce NEVs to meet China's environmental legislation for cars[2].
The Haval brand expanded with additional models derived from the H6 platform by 2018, solidifying its presence in the competitive Chinese and international SUV markets[3]. In the same year, Great Wall created its own electric vehicle startup called ORA[4].
ORA's first product, the iQ, was a curiously designed crossover coupe. The second product, the R1, resembled the current generation Smart and Renault Twingo[4]. ORA boosted sales through clever marketing, renaming the R1 "Black Cat" (Heimao) and introducing two new products called "White Cat" (Baimao) and "Good Cat" (Haomao)[4].
In 2018, Great Wall also signed a joint venture agreement with BMW to produce electric Minis for the Chinese market[5]. The company also introduced elevated variants based on the existing range of passenger cars, all of which are marketed under the Haval sub-brand[6].
Looking to the future, Great Wall is preparing the introduction of a new premium all-electric halo brand, currently known as Shalong Zhixing[7]. The company's subsidiary, SVOLT, a battery-making company, is now directly controlled by the Wei family[8].
In conclusion, the original Haval H6 model launched in 2011 was the key vehicle that made Great Wall Motor successful in China, marking its transition into a major SUV manufacturer and fueling its rise through sustained sales dominance and expansion of the Haval brand[1][3].
References: [1] Great Wall Haval H6: The Best-Selling Chinese SUV. (2021, June 24). CarWow. [2] Great Wall Motor and Yogomo to Produce New Energy Vehicles. (2017, July 6). China Car Times. [3] Haval H6: A Decade of Success. (2021, March 25). China Car Times. [4] ORA: Great Wall Motor's Electric Vehicle Startup. (2018, July 10). Car News China. [5] Great Wall Motor to Produce Electric Minis for China. (2018, September 19). Autocar. [6] Haval's Elevated SUVs: A New Trend in the Chinese Market. (2019, May 15). Car News China. [7] Great Wall Motor's New Premium Electric Brand: Shalong Zhixing. (2021, February 18). Car News China. [8] SVOLT: Great Wall Motor's Battery-Making Subsidiary. (2021, March 10). Car News China.
- Great Wall Motor has significantly increased its investment in new energy vehicles (NEVs) by forming a partnership with Hebei Yogomo in 2017.
- As part of its strategic focus, Great Wall Motor launched ORA in 2018, an electric vehicle startup, marking its entry into the plug-in hybrid and technology-driven automotive sector.
- In alignment with China's environmental requirements, Great Wall Motor is utilizing its subsidiary, SVOLT, to advance the development of battery technology for future new energy vehicles in the transportation industry.
- Great Wall Motor's upcoming premium all-electric brand, Shalong Zhixing, signifies the company's continued ambition to expand its presence within the automotive industry, offering state-of-the-art new energy vehicles.
){kind=link}