AutoBeta(AutoBeta.net)07/29 Report--

According to data, Great Wall sold 493500 new cars in the first half of this year, an increase of 4.67 percent over the same period last year. According to different brands, the cumulative sales of the Harvard brand exceeded 350000, an increase of 8.5% over the same period last year. The brand was not optimistic, with sales of 46900 vehicles in the first half of the year, down 39.62% from the same period last year. New Energy Euler sold 27013 vehicles in the first half of the year.

Based on its brand sales, the company adjusted its sales target for 2019 to 1.07 million vehicles, compared with Great Wall's previous target of 1.2 million vehicles. However, many people in the industry believe that the sales target of 1.07 million vehicles is still a lot of pressure for Great Wall Motor.

According to production and sales data, sales of the car in the first half of 2019 were mainly supported by the Harvard H6, which accounted for 36.5% of the company's total sales, but sales of the model have declined in the last two years.

The Harvard H6 is the most valued model of Great Wall, accounting for about 45% of sales all the year round. According to Great Wall Motor's previous plan

The company will rely on the sales volume of Harvard H6 to ensure its market position and continue to push through the old and bring forth the new. However, starting in 2017, the SUV market is so competitive that it is difficult for the Harvard H6 to maintain sales growth.

To make matters worse, Harvard H6 is facing the risk of compensation. On June 20, the trial of Honda v. Great Wall car infringement case began. Honda said that the structure of the rear door and roof decoration of the "Harvard H6 upgrade" is the same as the two invention patents held by Honda. Great Wall made a profit of more than 200 million yuan in the infringement and claimed compensation of 22.14 million yuan. At the same time, apply to the court to order Great Wall to stop the infringement immediately, including stopping manufacturing and selling Harvard H6.

Great Wall Motor said that it respects Honda's right to file a lawsuit, but maintains a firm position of "not infringing" and "not plagiarizing". For the content of the lawsuit, Great Wall Motor conducted a comparison and analysis to confirm that there is no problem of infringing Honda's intellectual property rights. The lawsuit filed by Honda will not affect the normal operating activities of Great Wall Motor.

In fact, Great Wall does not realize the consequences of relying on a single model. In contrast, Changben launched the SUV Harvard H8 in 2014 and the Harvard H9 in 2015, but these two cars are the worst-selling SUV. In addition, Wei Jianjun also launched a high-end brand WEY.

Thanks to preferential policies, the WEY brand became popular, but it was still difficult to stop its performance from falling sharply. The company's net profit returned to its mother and non-net profit halved in 2017 compared with the same period last year. WEY sales are difficult to sustain as the car market goes down in 2018. In the same year, a VV6 with a minimum price of 148000 yuan was launched. It means that Great Wall deviates from the original high-end development strategy, and the improvement of sales has to rely on low-price promotion and marketing promotion.

In addition to generating high-end models, Great Wall also reduces market downside risks through overseas layout. Russia is the focus of Great Wall's overseas market, where it has made more than 400 million yuan a year in the past two years by selling Harvard models.

Overseas layout is not plain sailing. Great Wall Motor announced on July 2 that the cooperative distributor Ilito Group owed 48.44 million US dollars in car payments. Great Wall Motor filed a lawsuit in court in October 2015, but the court dismissed the lawsuit from Great Wall Motor because IMS filed for bankruptcy. In July 2018, Great Wall Motor filed another appeal, but still did not receive notice of hearing.

Although it was owed by a cooperative dealer, Great Wall still did not change its mind. In June 2019, Great Wall Motor was completed and put into production at the Tula plant in Russia, with an investment of US $500m and a planned production capacity of 150000 vehicles.

Great Wall Motors said that the Tula factory can satisfy the local car market in Moscow and can also radiate to neighboring countries, and the plant has become the starting point for Great Wall Motor to go to Europe and the world.

In the future, Great Wall Motor will continue to expand into the high-end market, and Great Wall Motor will also cooperate with BMW to establish a joint venture called Beam Automobile Co., Ltd. in July 2018. Great Wall said that through the cooperation with BMW to shorten the cost and time, to enter the higher-end market. In July 2019, Beamlight revealed that the first joint venture MINI Cooper SE will be listed at the end of the year.

Great Wall has achieved more than that in the field of new energy. Honeycomb Energy Technology Co., Ltd., wholly owned by Wei Jianjun, said on July 9 that it would mass produce cobalt-free batteries in a single quarter by the end of 2020. The company is independent of Great Wall Automobile Power Battery Division and provides power battery PACK for Great Wall's Euler and Wei Pai new energy models.

On July 22nd, Great Wall Motor released the "GTO Global Wisdom Ecological Strategy" plan, together with BAT and other eight Internet and communications companies, around the 5G Internet model, AI technology, layout and interconnected driving, to turn cars into travel robots.

Through some recent events of Great Wall Motor, we can see that it is not feasible to win the market by relying on a single product at present, but for the technology and technology of products, breaking through the patents of developed countries has become a problem that Chinese automobile enterprises must face in the future. In the future, Great Wall Motor will continue to make efforts in this regard.

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