In just over four months, the stock price plummeted by 60%, the market value evaporated by nearly 400 billion yuan, and there were two clouds on the head. All indications are that Great Wall Motors is on the brink of danger.
1. The market value evaporated by nearly 400 billion?
The domineering spirit of the king in the field of SUV has achieved the reputation of one of the three independent powers, and Great Wall Motors has been the darling of capital for a long time. On October 26 last year, The Great Wall's stock price hit a record high of 69.80 yuan, with a market value of 644.6 billion yuan, once on the list of the top ten global car companies in terms of market capitalization. However, what people did not expect was that since then, the Great Wall stock price has been like a broken kite, all the way down. As of the close of trading on March 28, the Great Wall stock price was only 27.30 yuan, which had plummeted by 60% compared with the high point, and the market value had evaporated by nearly 400 billion.
2. Two clouds of haze overhead
Perhaps it is a coincidence that the great wall stock price plunge and Euler's "core change door" occurred at almost the same time. In the second half of last year, a number of car owners found that the Euler good cat car chip was the Intel Atom A3940, rather than the Qualcomm octa-core chip with better performance that manufacturers had been promoting, which caused an uproar in public opinion. Later, even CCTV reported on it. And the Great Wall Euler official, from the beginning of the concealment of the truth refused to admit, to the later had to apologize and compensate, can be described as the loss of the wife and folded the soldiers. The "core changing door" not only caused Euler to encounter a crisis of trust, but also brought continuous and huge damage to the brand image of the Great Wall.
In addition to the Euler "core change door" crisis, the continuous decline in sales is another haze hanging over the Great Wall. Entering the Year of the Tiger, the sales volume of the Great Wall has fallen sharply for two consecutive months. According to the announcement, the sales of the Great Wall in January this year were 111778 vehicles, down 19.59% year-on-year; sales in February were 70,792 vehicles, a sharp decline of 20.50% year-on-year. Even if it is not compared with the big dark horse BYD, the sales performance of the Great Wall Tiger Year has lagged far behind that of Geely and Chang'an in the top three of its own. Whether it is the evaporation of market value, the outbreak of the core door crisis, or the decline in sales, it shows that the Great Wall is on the verge of danger.
3. The Great Wall fell to the altar?
In fact, Great Wall Motors' troubles and anxieties go far beyond that. Through category innovation in the past few years, Great Wall has indeed successfully developed a number of products with considerable market influence, such as tank 300 and Great Wall Gun. The multi-brand strategy can cover more market segments and have certain anti-risk capabilities, but the negative result is that the battle line is too long, so that many resources of the Great Wall Group are dispersed. Chery, the earliest leading big brother of independent brands, is because of the multi-brand strategy that has been repeatedly defeated, and it has slipped into a second-tier car company. The Great Wall, which sells millions of vehicles a year, has as many as five or six sub-brands, is it too much?
Secondly, the sales growth of Haval, the "top pillar" of the Great Wall, is weak. As the needle of the Great Wall, Haval cannot afford to lose at any time. However, on the one hand, Haval's SUV market has grown from high speed to stagnation, and the total size of the mainland SUV market exploded to about 10 million units in 2017, and the total scale will remain the same in 2021. On the other hand, the National God Car Haval H6 not only has to face Changan CS75 and Geely Boyue to chase and block, but also suffered from BYD Song's dimensionality reduction from the new energy field, from the second half of last year, fatigue has been fully demonstrated, and the sales trend has become more and more severe.
Finally, Great Wall Motors has another huge challenge - transformation pressure. Two transformations, one is the transformation from fuel vehicles to new energy vehicles. Euler specializes in the female market, suffered a huge blow from the "core changing door" incident, white cats and black cats have stopped taking orders, and good cats are simply unable to bear the burden of the Great Wall's new energy transformation alone. Second, the high-end brand Weipai, whose previous VV series "ended in life", ended in failure. Today's coffee series has just begun, and its hybrid models must be tested by the market, not to mention the mountain of BYD in front. The road up the Great Wall brand is under pressure.