Great Wall Motor's sales target of 1.9 million units in 2022 will be stable in the first month of the year

Chen Maoli, a reporter of this newspaper, reported from Beijing

Recently, Great Wall Motor Co., Ltd. (601633. SH, hereinafter referred to as "Great Wall Motor") announced production and sales data for January 2022. In January, Great Wall Motor sold 111,800 new vehicles, down 19.6% year-on-year, and overseas sales of 12,800 units, up 16.2% year-on-year, accounting for 11.4% of sales.

In this regard, Caitong Securities said in the research report: "Lack of core + Spring Festival holiday factors disturbed the short-term sales of Great Wall Motors: The main factor in the company's january sales decline year-on-year was the shortage of chips, and it is expected that Q2 ~ Q3 (the second quarter to the third quarter) chips are expected to achieve a balance between supply and demand." ”

In January this year, a number of new products under Great Wall Motor entered the heat transformation period and gradually completed the delivery of orders. Haval H6, Haval Divine Beast, Tank 300 and Great Wall Gun have all sold more than 10,000 vehicles per month, which will jointly promote the steady development of Great Wall Motors.

Throughout the year, Great Wall Motor set an annual target of selling 1.9 million units for 2022, an increase of more than 48.4% year-on-year. However, it is prudent that in 2022, Great Wall Motors' production and sales still need to face the problem of chip shortage. On February 16, the relevant person in charge of Great Wall Motors confirmed to the reporter of China Business Daily that due to the shortage of chips, Great Wall Motors' Euler black cat and white cat two cars suspended the news of receiving orders.

Multi-brand force market segmentation

Specifically, the Haval brand sold 70,200 vehicles in January. The "National God Car" Haval H sold 35,600 units in June, ranking first in sales of Chinese SUV models for nine consecutive years (2013 to 2021); Haval Big Dog sold 7,826 units a month; Haval Shenbea sold 10,100 units a month, less than two months after its listing, and the cumulative sales have exceeded 16,000 units.

On January 8, the Haval X DOG mass production model was officially announced as "Haval Cool Dog", becoming the second heavy model in the Haval dog category. It is reported that Haval Kugou adheres to the user co-creation path of the whole life cycle, and more than 16,000 fans have joined the co-creation family.

The Euler brand sold 13,200 units in January, up 28.9% year-on-year. Euler Good Cat sold 9,020 units in January, an increase of 333.4% year-on-year. In 2022, Euler ballet cat, Euler punk cat, Euler lightning cat and other products will gradually usher in the market, boosting the sales volume of Euler brand to continue to break through.

Weipai sold 5,098 new cars in January. On January 14, Weipai released a new category of 0 anxiety intelligent electric vehicles, opening up a new track for 0 anxiety intelligent electric travel. As the first model in the Weipai 0 anxiety intelligent electric category, mocha DHT-PHEV officially opened pre-sale.

Among the tank brands, the delivery volume of tanks in 300 continued to exceed 10,000 units, and 10,400 units were delivered in January, an increase of 72.2% year-on-year.

"In 2022, Tank will continue to uphold the user-centered concept, continuously enrich the two product matrices of 'mecha technology' and 'business luxury', and continue to create a tide-play off-road lifestyle for users through category innovation, service upgrades, and ecological co-creation." Great Wall Motors said.

Great Wall pickup trucks sold 12,900 units in January, of which the Great Wall Gun sold 10,100 units, with a total of more than 10,000 sales in 19 months, and continued to win the first pickup truck sales. Great Wall Pickup truck has been the first domestic and export sales for 24 consecutive years. It is reported that in 2022, the Great Wall Cannon will fully exert its efforts on fashion commercial and passenger leisure, and launch more new shells.

Sprint to the annual sales target of 190 vehicles

In 2021, Great Wall Motor sold 1.28 million vehicles, an increase of 15.2% year-on-year, outperforming the market. In 2022, Great Wall Motor set a sales target of 1.9 million units, an increase of more than 48.4% compared with 2021.

48.4% sales growth, from the perspective of growth, in the million-level car companies, the great wall sales target can be described as "radical". Geely, according to the sales forecast released by Geely Automobile, the group's sales target for 2022 is 1.65 million vehicles, an increase of about 24% over 2021 sales.

How will Great Wall Motor support the growth target of nearly 50%? The answer given by Great Wall Motors is to walk on two legs "domestic and overseas".

Overseas markets have been the focus of Great Wall Motor's layout since 2016, and 2022 will be a year for Great Wall Motor to "accelerate its global development". In 2021, Great Wall Motor's overseas sales increased by 103.7% year-on-year, and sales exceeded 140,000 units. Although the overseas market target is not clear, it is known that the overseas market will become an important contributor to the 50% growth rate of Great Wall Motors.

The reporter paid attention to the news that "Great Wall Motors officially accepted the IrasaiMapolis factory in Brazil" at the beginning of the year. Spending real money to acquire the plant from Daimler Group, Great Wall Motors valued the market potential of the Latin American region with Brazil as the core.

According to public information, the Brazilian market has always been a strategic center for major international car companies. Brazilian cars are ranked sixth in the world. The Brazilian Automobile Manufacturers Association (ANFAVEA) predicts that Brazilian sales will continue to grow by 8.5% in 2022 to 2.3 million units.

It should be noted that the Latin American market with Brazil as the core is only one of the bases of Great Wall Motor's overseas market. According to public information, Great Wall Motors has completed its layout and maintained a leading position in Russia, Australia, South Africa, Saudi Arabia, Chile, Thailand and other markets.

In February this year, Great Wall Motor released the "4+4" ASEAN strategy: it has expanded the markets of Thailand, Brunei, Laos and Myanmar, and will start the normal operation of Malaysia, Vietnam, the Philippines and Singapore in 2022.

In terms of products, in 2022, WEY Coffee 01 and tank series models will be listed and delivered overseas; Haval, Euler and Great Wall pickup trucks are deeply rooted in Russia, Australia, South Africa, Saudi Arabia, Chile and other advantageous markets.

It is foreseeable that the development of new markets and the listing of new products overseas will bring increments to Great Wall Motors.

In the domestic market, Great Wall Motors will continue the "multi-brand force" style of play in 2021. Minsheng Securities pointed out in the research report: "In 2021, the company's multi-brand strategy landed, and new cars such as Haval Divine Beast, Haval Red Rabbit, Good Cat GT, WEY Mocha, Macchido DHT, Great Wall Cannon Global Edition, Artillery, and Black Bullet were intensively listed. In 2022, the company's strong product cycle continues, Euler Ballet Cat / Punk Cat / Lightning Cat, Tank 700/800, King Kong Cannon, Salon Brand Mech Dragon and other high-end new cars will be listed one after another, and the multi-brand strategy and DHT hybrid technology will be landed, which will help the product matrix continue to be optimized. ”

However, what needs to beware is that in 2022, the automotive industry is still plagued by chip shortages, and Great Wall Motors is no exception. On February 16, the relevant person in charge of Great Wall Motors confirmed to reporters the news that the two cars of Euler Black Cat and White Cat temporarily stopped receiving orders due to chip shortage.

It can be seen that in order to sprint the annual sales target of 1.9 million vehicles, Great Wall Motors needs to continuously solve the problem of chip shortage.

(Editor: Zhang Shuo Proofreader: Yan Jingning)