AutoBeta(AutoBeta.net)04/22 Report--

Last night, Great Wall Motor disclosed the first quarter of 2023 performance report, revenue profits all showed negative growth, amazing!

Financial report shows, Great Wall Motor first quarter realized revenue 29.039 billion yuan, Year-on-year decline 13.63%; Parent net profit 174 million yuan, Year-on-year decline 89.34%; Deduction of non-net loss 217 million yuan, Year-on-year decline 116.65%;

That is to say, in the first quarter of 2023, the revenue and profit of Great Wall Motors showed negative growth, especially the deduction of non-net profit, with a loss of 217 million yuan, which is equivalent to that Great Wall Motors, which only relies on the main business of building cars, does not make money. As for the change of performance, Great Wall Motor explained that it was mainly due to the fact that the reporting period was still in the product structure adjustment period, and based on the listing rhythm of new products in 2023, the investment in new energy brand construction and R & D was increased.

Great Wall Motors, showing its declining trend! In the first quarter, the cumulative sales volume of Great Wall Motors was 220,000 vehicles, down 22.41% year-on-year. According to the annual sales target of 1.6 million vehicles announced by Great Wall Motor, the target completion rate in the first quarter was 13.7%. Among them, Haval, Wei brand, Euler, tanks all showed different degrees of decline, especially Wei brand, sales volume only 3403 vehicles, a year-on-year decline of 76.18%, and Euler brand is also close to the waist cut, a year-on-year decline of 47.37%.

Great Wall Motors, why can't they sell? One reason is that sales of the once-hot Haval brand are stagnating, with sales of the Haval H6, known as the "national god car," down 32.8% year-on-year. It is undeniable that with more and more SUV products in the domestic market and more and more fierce competition, the market position of Haval H6, which was once "slaughtered", has been shaken, and sales volume is gradually weak, even Haval H6 is the same, not to mention other models.

Like the high-end brand Wei brand, the performance is also difficult to compliment, not only for two consecutive years to become the largest decline in the Great Wall Motor sub-brand, and even become the Great Wall Motor's largest "burden", the first quarter cumulative sales of 3,403 vehicles, a year-on-year drop of 76.18%. It is understood that since October 2022, Wei brand sales have been cut for six consecutive months, especially in December 2022, 86.39% year-on-year decline hit an all-time high, monthly sales of only 1380 vehicles.

In fact, the decline in sales of Great Wall Motors is also related to its product layout. Great Wall Motors has successively launched Haval Big Dog, Haval First Love, Haval Red Rabbit, Haval Cool Dog and other models, which also helps the sales volume of Great Wall Motors to increase. However, the good times are not long. The stacking of products does not realize cluster effect, but accelerates the internal friction of products at the same level. The long-term homogenization also causes the aesthetic fatigue of consumers. In addition, the alternative product naming leads to the continuous dimming of the advantages of Great Wall Motors.

At the same time, the transformation of Great Wall Motor into a new energy track has not been effective for the time being. In the first quarter, the cumulative sales volume of Great Wall New Energy Vehicles was 20,900 vehicles, down 39.7% year-on-year. Compared with BYD's 508,700 vehicles, it was really dismal. We should know that Great Wall Motors was actually the same batch of independent brands entering the pure electric market as BYD.

Unlike BYD, Great Wall Motors chose to walk on one leg. In 2022, Great Wall Motors chose to focus on hybrid technology and took the lead in applying R & D achievements to Wei brand. However, in terms of technology, Great Wall Motors did have the strength to compete with a large number of new energy brands in the market. However, the market did not pay the bill. Wei brand performed very poorly and its sales volume plummeted for 6 consecutive months.

As the only pure electric brand, Euler also failed to shoulder the heavy responsibility, the cumulative sales volume in the first quarter of 17,800 vehicles, a year-on-year decline of 47.37%, second only to Wei brand. Since Euler stopped selling black cat and white cat two pure electric cars, brand sales began to shrink sharply, even if the subsequent launch of ballet cat, lightning cat and other new cars, but the overall sales increase is also very limited.

In order to reverse the decline, Great Wall decided to make large-scale adjustment to the organizational structure of its whole brand, merge the management teams of Euler and Salon, Wei Brand and Tank, implement dual-brand operation under their respective systems, and focus on pure electric market. The Haval brand and Great Wall pickup brand continue to operate independently.

Such drastic reform shows the urgency of Great Wall Motor's "seeking change". Looking back to 2022, the total sales volume of Great Wall Motors is 1.0675 million vehicles, which is far from its sales target of 1.9 million years, with a completion rate of only 56.19%. According to the original plan, Great Wall Motor expects to achieve a total sales volume of no less than 2.8 million vehicles in 2023, but given the market performance in 2022, Great Wall Motor lowered its target to 1.6 million vehicles, 1.2 million fewer than the previous plan, showing how difficult it is now.

However, since the beginning of this year, Great Wall Motors has significantly accelerated the pace of new energy. On March 10, Great Wall Motors officially released Hi4, a brand-new intelligent four-wheel drive hybrid technology. At the 2023 Shanghai Auto Show, 30 products of Haval, Wei Brand, Euler, Tank and Great Wall Gun were unveiled, 15 of which were intelligent new energy products.

Haval's decline from prosperity to decline, Wei brand's decline, let once "top students" face the risk of falling behind, readjust the organizational structure, integration, focus on the brand matrix is the means to save Great Wall Motor, but whether it can do so, really hard to say.

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