AutoBeta(AutoBeta.net)03/16 Report--

Affected by the epidemic of viral pneumonia, in the first quarter of 2020, all domestic car companies were unable to achieve the sales and performance targets set at the beginning of the year. Coupled with the fact that the car market was in a downturn for three consecutive years, they had to adjust their annual sales plans under a comprehensive blow. A few days ago, Great Wall lowered its sales target for 2020, becoming the first car company to adjust due to the impact of the epidemic.

According to the latest restricted stock and stock option incentive plan for 2020 released by Great Wall Motor, it revised the performance evaluation target of the equity incentive plan, reducing its sales target to 1.02 million vehicles in 2020 from the previous 1.11 million vehicles, and its net profit to 4.05 billion yuan from the previous 4.7 billion yuan.

The equity incentive plan is a plan launched by Great Wall Motor in September 2019, which aims to promote the company to establish and improve the incentive and restraint mechanism, and effectively enhance the value creativity and long-term competitiveness of the enterprise, so the annual sales volume and net profit are set as the core assessment goals.

Great Wall Motor sold 1.06 million vehicles in 2019, up 0.7% from the same period last year. The performance report showed a net profit of 4.493 billion yuan in 2019, down 13.7% from the same period last year.

After entering 2020, due to the downturn of the car market and the impact of the epidemic, Great Wall Motor showed a large decline. According to the report, Great Wall car sales in February were 10023, down 85.5 per cent from a year earlier, while cumulative sales in the first two months were 90284, down 50 per cent from a year earlier.

In terms of specific brands, the production and sales of the Great Wall Harvard brand in February were 7190 and 7148 respectively, down 85.2 per cent and 85.5 per cent from a year earlier. The production and sales figures of the WEY brand in February were 400 and 451 respectively, down 93.7 per cent and 92.7 per cent from a year earlier, while those of the new energy brand Euler were 324 and 256 respectively, down 91 per cent and 92.2 per cent from a year earlier. The Great Wall gun pickup sold 1037 vehicles in February.

As the domestic market is affected by the epidemic, compared with the overseas market of Great Wall Motor, it is more important. Great Wall sold 3003 vehicles overseas in February, accounting for about 30 per cent of total sales.

In fact, Great Wall Motor is also speeding up its layout of the offshore market. In February this year, Great Wall car Harvard brand and Great Wall EV were unveiled at the Delhi International Motor Show, officially announcing their entry into the Indian market. The first model of Great Wall in India will go on sale in 2021, while Great Wall acquires GM's plant in Talegang, India, and the deal will be completed in the second half of 2020.

On February 17, Great Wall also signed an agreement with General Motors to acquire the Royong factory in Thailand, where Great Wall will start production in the future. Great Wall plans to export its products to other ASEAN countries and countries such as Australia, centering on Thailand.

Great Wall Motor has sold more than one million vehicles for the fourth year in a row, and the uncertainty in 2020 has further added to the market anxiety of Great Wall Automobile, which will lose its name of selling millions of cars a year at any time.

As Great Wall makes adjustments to its annual sales plan and the car market remains in the doldrums, more and more car companies will further lower their annual targets.

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