The Great Wall, once known as the "domestic god car", is now falling rapidly to the "altar".
At the close of trading on March 9, Great Wall Motor disclosed its sales in February. According to the announcement, Great Wall Motors sold a total of 70,800 new cars in February this year, a sharp decline of 20.5% year-on-year; in the case of January sales have fallen by 19.59% year-on-year, Great Wall Motors' sales in February are still not ideal, and it is clear that the decline in Sales of Great Wall Motors has not stopped.
In fact, investors may not be surprised by the decline in sales of Great Wall Motors, after all, under the influence of The "chip and publicity" of Euler Good Cat in the fourth quarter of last year, Great Wall Motors' reputation has collapsed, and the decline in sales is also reasonable.
From its stock price performance, we can also see the current dilemma of the Great Wall. According to statistics, since the record high of 69.8 yuan in October last year, The stock price of Great Wall Motors has gone all the way down, as of the close of March 18, Great Wall Motors' stock price is only 28.47 yuan, compared with the high point, Great Wall Motors' stock price has been cut, and the market value has plummeted by 381.7 billion.
Whether from the perspective of sales or stock prices, there are various indications that Great Wall Motors has come to the brink of danger.
Sales decline, great wall motors under the "crisis"
"Euler good cat, the car that will bully women the most" This is the mockery of netizens for Euler's good cat slogan.
As a car brand under Great Wall Motors specifically for women, since the owner of the car broke out in the fourth quarter of last year that "the chip is not in line with the publicity", Euler and Great Wall Motors have been pushed under the wind of public opinion.
After the fierce criticism of netizens, car friends and the media, the image of "domestic god car" that was hard to establish in the minds of consumers also began to change.
Looking back at the development of Great Wall Motors in recent years, in fact, this is not the first time that it has been exposed to quality problems by consumers.
According to the statistics of China Automobile Consumption Network, since October last year, the great wall's complaint volume has been in the forefront, and by January this year, the great wall's complaint volume has reached 76, which is the most complaint-prone car company in China.
In addition to many complaints, many models under the Great Wall are "full of problems", in addition to Euler's good cat's "chip and propaganda is not in line with the publicity", like the Great Wall's best-selling Harvard H6, it has been complained by consumers about "new cars can not start, steering system failure", "low engine navigation version, B-pillar abnormal" and other problems, product quality can be seen.
Under the influence of quality problems, Great Wall Motors, whose reputation has gradually collapsed, has also been "voted by the feet" of consumers.
According to the sales data disclosed by Great Wall, since November last year, Great Wall Motors' sales have begun to show a downward trend.
Sales in November were 122,500 units, down 15.65% year-on-year; December sales were 162,300 units, up 8.17% year-on-year; January 2022 sales were 110,000 units, down 19.59% year-on-year; February sales were 70,800 units, down 20.5% year-on-year.
There is no doubt that due to the quality problems of its cars, Great Wall Motors is being abandoned by consumers; it is not difficult to see from the declining sales volume that Today's Great Wall Motors has slowly come to the edge of danger.
Starting from the car, the past and present life of the "domestic god car"
Although there are many products today, the former Great Wall Motors can be said to be the general existence of "domestic god cars".
Looking back, Great Wall Motors started 22 years ago in 1990. At that time, Wei Jianjun, who was only 26 years old, contracted the Great Wall Industry from the Nandayuan township government and became the general manager of the township enterprise.
However, due to operational problems, the Great Wall Industry at that time had more than 2 million debts, and how to lead the Great Wall Industry to achieve a turnaround and find a new way out was a problem that Wei Jianjun urgently needed to think about at that time. After several years of groping, Wei Jianjun finally found a good direction - to build a car.
In 1993, the Great Wall hand-pieced together the first batch of "Great Wall Cars", priced at 100,000 yuan. In that era, because cars were not yet popular, cars were generally sold at more than 200,000 yuan, and Great Wall cars were all the rage with low prices. However, the good times were not long, with the state stipulating that automobile production implemented the "catalog system" management in 1994, the cars "cobbled together" by Great Wall Motors could not be listed on the catalog and could not continue to sell, and Wei Jianjun, who was helpless, had to stop selling cars and began to explore again.
In 1995, Wei Jianjun, who had inspected abroad for a long time, once again found a new direction - to build pickup trucks, when the domestic economy was developing rapidly, Wei Jianjun believed that the pickup trucks that could pull goods would have a strong demand, so he resolutely entered the pickup truck industry; and the later results were also as Wei Jianjun expected, the pickup trucks produced by the Great Wall were sold, and tens of thousands of pickup trucks were sold in less than three years, and Great Wall Motors also successfully reversed the situation of continuous losses at that time with pickup trucks.
Time to 2002, in the pickup truck market success of Great Wall Motors, began to target the SUV market, in this year Great Wall Motors launched China's first economic SUV - Seffer, once launched to become the top three national SUV sales; the following year, Great Wall Motors won the Chinese pickup truck, SUV double champion for the first time.
Nine years later, in 2011, Great Wall Motors launched the Haval H6, which opened the prelude to the Haval "myth" - from 2011 to 2021, the Haval H6 became the champion of Chinese SUV sales for 11 consecutive years, and now this car is also known as the "domestic god car".
In October last year, with the continuous rise of the stock price, the stock price of Great Wall Motors once reached 69.8 yuan, and its total market value reached 644.9 billion, which can be said to be unlimited; if it were not for the product quality problems that were later exposed, perhaps the brilliant moment of Great Wall Motors would not end so quickly.
Transformation is weak
In addition to the problems mentioned above, Great Wall Motors is currently facing a huge challenge - the lack of new energy transformation.
As we all know, at present, new energy vehicles are already the trend of the times, whether it is the high-end brand BBA, or japan's three giants Toyota, Honda and Nissan, and even the domestic car companies BYD, Wuling and even Geely, etc., are actively transforming to new energy.
With the successful transformation to the direction of new energy, BYD's stock price soared to 333.33 yuan, with a market value of nearly 1 trillion yuan, and even if it has recently been sharply corrected, BYD's current market value is still 619.5 billion.
On the other hand, Great Wall Motors, in the case that major car companies are transforming, the Great Wall is still "dead" fuel vehicles. According to the data disclosed by the media, the cars produced and sold by Great Wall Motor are still mainly fuel vehicles, of which 85% will be accounted for in 2021; pure electric Euler and hybrid WEY, the total sales volume in 2021 is less than 200,000 vehicles, accounting for only about 15%.
Due to the lack of transformation, Great Wall Motors has also become the first object to be abandoned in the capital market. When BYD's stock price continues to reach a new high, The stock price of Great Wall Motors has already fallen, although there is also the impact of the Euler chip incident, but I am afraid that the lack of transformation is also one of the important reasons for the flight of funds.
In fact, Wei Jianjun is not unaware that new energy is already a major trend. In the 2025 strategic plan released in the middle of last year, Great Wall Motors mentioned that by 2025, it will achieve global annual sales of 4 million vehicles, of which 80% are new energy vehicles; operating income exceeds 600 billion yuan; in the next five years, the cumulative R & D investment will reach 100 billion yuan.
However, from the current point of view, in the case of only 200,000 new energy vehicle sales in 2021, it is not easy to achieve this goal in just 4 years.