Author | Wang Xiaojun

Editor | Chai Xuchen

"The most competitive year in the auto industry is always the next one." The value of this statement is still increasing.

At the beginning of the new year, on January 1st, the off-road brand of Great Wall Motor, known for its profitability—Tank, took the lead to release its first all-terrain SUV, seizing the all-terrain market.

In the past year, Tank sold 0.23 million vehicles, becoming a true sales driver, and since Tank is a high-price brand under Great Wall, it also boosted the overall average price per vehicle for Great Wall.

Great Wall's Chairman Wei Jianjun also emphasized that Great Wall pursues quality market share, avoiding price wars. Currently, the new game in the industry is about who can survive longer, so it seems that Great Wall's measures to maintain profit are wise, as this is essential for sustainable development.

However, changes are still ongoing, and Great Wall also needs to respond to market changes in a timely manner by providing corresponding strategies and products to continue achieving quality market share.

Reattack off-road.

The intense competition in China's Automotive Industry has long been a prominent topic.

In the process of competing, each company has different choices. The price war that has been waged for two whole years has eliminated many players, and the remaining players need to find a path of competition that suits them to extend their survival time.

Great Wall continues to leverage its strengths in the off-road segment.

In 2024, Great Wall Motor's accumulated sales reached 1.2333 million units, a slight year-on-year increase of 0.21%, which is not particularly outstanding amid the obvious Matthew effect in the Industry; however, regarding the profit powerhouse Tank, over 0.23 million new vehicles were sold, a year-on-year growth of 42%; among them, the Tank brand's new energy vehicles sold 107,315 units for the entire year, accounting for 46%.

Riding on this momentum, Great Wall pressed forward, launching another new vehicle under the Tank brand on New Year's Day — the Tank 500 Hi4-Z, with a starting price of 0.3638 million yuan, and the New Year limited "certain red" version at the same price.

Although Great Wall says it is not engaging in a price war, this price is still seen as quite competitive by many.

Tank has always been known for its rugged off-road capabilities, and this time, the Tank 500 Hi4-Z emphasizes versatility, capable of both off-roading and urban commuting, meeting the needs of individuals who want both off-road capability and must commute in the city.

In terms of off-roading, the Tank has always been a representative among domestic brands. From RBOB Gasoline to hybrid, the Tank has been exploring various forms of power technology, while laying out the strong off-road super hybrid architecture Hi4-T and the all-terrain super electric hybrid architecture Hi4-Z.

Among them, Hi4-T technology defines the strong off-road series, based on off-road performance, providing a New energy experience; whereas Hi4-Z technology positions the all-terrain series, focusing on the New energy experience to offer all-terrain scene experiences.

Therefore, this vehicle also takes into account the needs of urban commuting, becoming the first plug-in hybrid off-road SUV on the market with an electric range of 201 km, and also has the longest electric range globally among plug-in hybrids.

In addition to the powerful high-priced Tank brand, another model that Great Wall Motors pushed in the latter half of last year is the Wey brand Lanshan, an SUV model focusing on intelligence, priced at around 0.3 million yuan. By the end of the year, this vehicle can also achieve monthly sales of around 8,000 units.

As high-priced brands continue to make strides, Great Wall has become an 'outsider' in the price war.

In the first three quarters of 2024, Great Wall Motors achieved total revenue of 142.254 billion yuan, a year-on-year increase of 19%, reaching a new high. The overall gross margin increased by 1.92 percentage points year-on-year to 20.76%; net income was 10.429 billion yuan, up 108.70% year-on-year; the net profit attributable to shareholders, excluding non-recurring gains and losses, was 8.374 billion yuan, doubling year-on-year.

Additionally, in the first three quarters, the comprehensive revenue per vehicle for Great Wall Motors was 0.1666 million yuan, an increase of 0.0283 million yuan compared to the same period last year, which is particularly rare in an environment where many are focusing on lowering prices to increase volume.

This is Great Wall's different answers to the Industry amid the wails of the price war.

Industry Anxiety

In 2024, due to the competition within the auto Industry, many leaders who have not been in the front line for a long time will return to the front line to personally engage in live broadcasts and marketing.

Wei Jianjun bluntly stated that Great Wall Motor has always focused on technology and neglected marketing; some users understand the sub-brands due to representative models but do not have a deep understanding of Great Wall's overall brand image.

In an environment where everyone is vigorously promoting, Wei Jianjun felt that "even good wine fears being in a deep alley," so he frequently appeared in front of the camera. He stated, "In terms of communication and interacting with users, Great Wall needs to catch up."

Although his screen time has increased, Wei Jianjun does not believe that he and Great Wall are very anxious; he emphasizes the need to maintain a bottom line in fierce competition, "If everyone is losing money, long-term sustainability of the business will not hold, so there must be the ability to generate profits."

However, the Industry still seems to be in a state of anxiety. Despite many car manufacturers achieving sales growth, based on the 2024 financial data, only seven main engine manufacturers are profitable.

The entire Industry is striving to squeeze the water from the towel so they can be more competitive on price. The end-of-year request from main manufacturers for supply chain companies to lower prices has brought the industry's anxiety to the forefront again, but the spiral of Low Stock Price under the price war will inevitably impact the quality of products.

Even Guangzhou Automobile Group, which used to make easy profits due to its partnerships with Guangfeng and Guangben, has turned a profit into a loss this year. The chairman of Guangzhou Automobile Group, Zeng Qinghong, also urgently called out last June: "Continuing to roll like this is not a solution; the purpose of the enterprise is profit, and we should have a big picture and a long-term strategy."

Wei Jianjun also believes that, "The achievements of China's auto industry today have not come easily. I hope the auto industry develops steadily and adjusts its breathing while running." Specifically, "The products should be affordable and user-friendly for the LBX Pharmacy Chain Joint Stock, while the enterprise can also grow, not pursuing short-term sales explosions, but focusing on the healthy development of the enterprise."

The advocacy of these two auto industry leaders is inherently reasonable, but the competition in the Industry remains intense. As long as there is elimination, each company must push hard to win. Great Wall Motor also needs to find a balance between having a quality market share and stable profits in order to succeed in this game of who can survive longer.