GWM: Improving Little by Little Everyday

"Improving Little by Little Everyday", this slogan can be seen everywhere in the headquarters and plants of Great Wall Motor (GWM). Thanks to its perseverance and its "craftsmanship", GWM gradually developed from a small township to a world-renowned enterprise in more than 20 years.

The current market value of GWM has reached 100 billion, and it has strong anti-risk capabilities. Even in the context of the global economic slowdown in 2019 and the overall downward trend of the automotive industry, GWM's total operating income still reached 96.211 billion yuan and net profit was 4.531 billion yuan.

Entering 2020, the spread of the COVID-19 pandemic has exacerbated the already depressed auto market. During the fight against the epidemic in China, GWM actively fulfilled its social responsibilities. It has donated and donated cars with a total value of 8.85 million yuan to the country, and launched a 20-million-yuan user care fund to provide preferential policies for dealers. With the improvement of the domestic epidemic situation, GWM has made every effort to resume work and production, and has also contributed to China's stable economy.

In the special report of CCTV’s "Work-resuming" on the evening of April 24, GWM was recognized by the society as a model enterprise. GWM's overseas suppliers of all raw materials are distributed in 26 countries and regions around the world. However, due to the spread of coronavirus abroad, GWM is currently actively looking for alternatives in order to minimize supply chain risks. Guo Qingtong, Head of Procurement of GWM Tianjin Branch, said in an interview with CCTV: "GWM will accelerate the promotion of localization to replace the resource shortage of imported raw materials, and seek some resources from other countries for production line transfer. At present, we have Several products have found alternatives. "

In fact, in recent years, GWM has been seeking breakthroughs in the supply chain, and vigorously developing its own parts system is an important part. In 2018, GWM's four major component segments, HYCET, Nobo Auto System, MIND Electronics Appliance and Exquisite Automotive Systems, operated independently, realizing the transformation of GWM's own component supply chain system from business control to investment control. The effect of this measure is also very significant. In 2019, GWM parts and other revenue reached 8.857 billion yuan, an increase of 42.78% year-on-year.

In 2019, sales of passenger cars in the narrow sense of China fell 9.4% year-on-year. In the context of increasing market stocks and negative growth, GWM sales in 2019 still exceeded 1.06 million units, an increase of 1.43% year-on-year. Once again practice the "Improving Little by Little Everyday" brand spirit.

The Haval brand's cumulative global sales have reached nearly 6 million units, ranking No. 1 in China's SUV sales for 10 consecutive years. The cumulative global sales of GWM pickups have exceeded 1.6 million units, maintaining the number two domestic and export sales for 22 consecutive years. In the first quarter of this year, the market share of GWM pickups reached nearly 50%.

GWM's overseas business is also developing rapidly. According to official data, GWM's overseas market sold 65,175 new cars throughout 2019, an increase of 38.68% year-on-year. The rise of new car export volume contributed to the surge in overseas performance. In 2019, GWM's overseas market total operating income was 5.522 billion yuan, a year-on-year increase of 66.61%.

To be specific, the Russian market revenue reached 1.434 billion yuan, a year-on-year increase of 260.24%, which has a lot to do with the completion of GWM's Tula factory last year and the launch of the first global car Haval F7. In the South African and Saudi Arabian markets, revenue in 2019 reached 1.082 billion yuan and 720 million yuan, respectively, up 46.0% and 752.80% year-on-year.

It is reported that the total R & D expenditure of GWM for the whole year of 2019 reached 4.248 billion yuan, a year-on-year increase of 7.31%, accounting for 4.47% of revenue. And the key layout is in the fields of car cleanliness, intelligence, and networking.

As of the end of 2019, in terms of research and development, GWM has successively established overseas R & D centers in Japan, the United States, Germany, India, Austria and South Korea, and built a “seven countries and ten places” R & D structure with Baoding headquarters as the core, covering Europe, Asia and North America To further build a “4 + 4 + 1” brand development system and strengthen its global competitiveness.

Entering 2020, affected by the COVID-19 pandemic, the global auto market is in a state of suspension. However, with the effective control of the epidemic in China, GWM sales are gradually recovering. According to official data, GWM's new car sales in March were 60,000 units, of which domestic sales were 54,000 units, which was up 6 times compared with February, which was the most affected by the epidemic; February sales also reached 5,942 units, which was nearly doubled .

It can be seen that GWM's overseas market accounted for nearly 10% of total sales in March this year, compared with 5.7% in the same period last year, which reflects from the side that the globalization strategy will become a new growth point for GWM's future sales.

Entering 2020, GWM has been expanding overseas markets. On January 17, GWM acquired GM's Tarigan plant in India. It also participated in the Delhi Auto Show and announced its official entry into the Indian market. On February 17, GWM announced the acquisition of GM's Rayong manufacturing plant in Thailand and plans to fully enter the Southeast Asian market.

In addition, the continuous increase in research and development efforts, the continuous improvement of brand awareness, and the long-term accumulation of user reputation, etc., will become an important magic weapon for GWM to enter the world stage and compete with international car companies in the future.

With years of accumulation and strong anti-risk capabilities, GWM is facing difficulties, as Wei Jianjun, Chairman of GWM said: We must turn crisis into opportunity. For GWM, going global is the biggest opportunity for itself.