【Editor's Note】China's auto overseas business is moving from a single trade export 1.0 stage to a systematic 2.0 stage from products to manufacturing, marketing, technology, branding, etc. The development trend of automobile electrification and intelligence provides a market space for Chinese car companies to accelerate internationalization.
Can China emerge from a world-class car brand? How to cultivate automotive international talents? Under the great changes in the global automotive industry, what problems and opportunities are Faced by Chinese auto brands on the road to sea? It is time to explore the issue of "internationalization of Chinese auto brands" from the current perspective. Based on this, Sohu Auto planned a series of programs "Running to the Sea of Stars - Internationalization of Chinese Automobile Brands". This is the sixth phase: the three stages of Great Wall Motor's internationalization.
Wei Jianjun, chairman of Great Wall Motors
Wei Jianjun has great ideals for promoting "internationalization."
"Why are Chinese car companies having a hard time? It's because there's no internationalization. It is impossible for Chinese car companies to engage in globalization. ”
"Independent brands do not do internationalization only a dead end, Great Wall Motors no matter what to challenge."
"To quickly amplify the advantage in these three to five years. The opportunity for Chinese car brands is only once. ”
"Auto brands are not internationalized without value, but also can not survive, for the sake of the brand, for the sake of the business must implement the globalization strategy."
"The brand strategy of the 21st century is globalization, how to prove that you are excellent? It has to be a global brand to prove it. ”
Wei Jianjun, chairman of Great Wall Motor, has stated on many occasions that it will carry out internationalization to the end. Even though Great Wall Motors has faced pressure on reform at home and a complex and changeable international trade environment externally, the "going to sea" is still strong.
In 2020, Great Wall Motor acquired GM's plant in Thailand, which was originally GM's fourth-largest auto assembly plant in Asia. In early 2022, Great Wall Motor acquired Daimler's plant in Brazil and plans to invest USD 1.9 billion in the production of new energy vehicles.
The effects of outbound investment are obvious. In the past three years, Great Wall Motor's overseas sales have soared, and the proportion of overseas markets in the overall sales volume has expanded from 6% to 11% year by year. Of course, this includes both the strategic determination of Great Wall Motors itself and the "outlet" that follows the overall momentum of China's automobile industry to go to sea.
However, under the multiple combined forces such as the epidemic, war, and raw material shortage, can Great Wall Motors' overseas rhythm continue the upward momentum of the previous three years?
According to the Export Sales Data of the China Association of Automobile Manufacturers in February, Great Wall Motor exported 6,037 vehicles in a single month, down more than 50% month-on-month and more than 38% year-on-year. In the first quarter of this year, the overall export performance of Chinese auto brands was not as good as in previous years. Not only Chinese brands, but also for global auto companies, the topic of internationalization is facing many uncertainties and risks at present.
In the face of the global market, is it in or out?
Last year, Wei Jianjun revealed in the "Great Wall Motor 2025 Strategy" that the goal is to achieve annual global sales of 4 million vehicles by 2025. Among them, we do not know how much it has been given to overseas markets. However, in 2021, Great Wall Motors sold more than 1.28 million new cars, removed 140,000 units from overseas markets, and Great Wall Motors sold 1.14 million new cars in the domestic market.
The Chinese market is already the most competitive place in the global auto market. Any head car company, if it wants to triple the sales growth after three years, it is doomed to grab the cake in more markets - internationalization is a must-go road. Even if the road is a little tougher at the moment.
Standing at the current node, facing the topic of "internationalization of Chinese car companies", Sohu Auto exclusively interviewed Sun Guang, deputy general manager of Great Wall Motor's international business. We are trying to understand: what kind of attitude should car companies take to face the international market in 2022 and beyond?
[ 01 three stages ]
As one of the first Chinese auto companies to go abroad, Great Wall Motors' "going to sea" began in 1997. When a thing persists for twenty-four years, what changes has Great Wall Motors changed?
Sohu Automobile: If there is no accident, Great Wall Motors' cumulative overseas sales this year are likely to exceed 1 million units. Summarizing the international business of Great Wall Motor in the past few decades, how many stages do you think can be divided into?
Sun Guang: It can be divided into three important stages.
From 1997 to 2003, in its infancy, the landmark event was the pickup truck exit, the first of its kind.
From 2004 to 2013, in the stage of rapid development, Great Wall Motors began to develop overseas KD assembly business.
Since 2014, it has entered the stage of strategic upgrading.
Sohu Auto: In these three stages, what experiences can be discussed?
Sun Guang: Great Wall Motor's export business in South Africa, Saudi Arabia, Chile and other countries has been carried out earlier, and it has in-depth understanding and research on local geography, customs and customs, and consumer preferences. At the same time, Great Wall Motor's rich product matrix can meet the needs of local characteristics. In addition, fully hiring local talents to truly achieve local deep cultivation is the reason and experience of achieving certain achievements in overseas markets.
The international market is wide and complex, and it is necessary to do targeted localized research and development research from the beginning of product design to create brand differentiation. For example, the Middle East is hot and hot, and the landform is dominated by desert. To this end, Great Wall Motor's Middle Eastern version of the air conditioning compressor was upgraded to a high-power version, the 120 km / h speed alarm was changed to standard to fully adapt to and meet the local regulatory requirements, and the thermal management strategy was modified according to the rich local experience of the haval H6 in the early stage.
Our products have to meet a variety of extreme operating conditions at the same time, such as the high temperature in the Middle East, the mountainous terrain in Chile... After careful consideration, it is necessary to produce global products to the highest standards. In this regard, Chinese brand cars have a natural advantage. Because of China's complex road conditions and rich geographical landforms, the products rely on the research and development of the local market and have a wide range of adaptability.
Sohu Auto: In the future, will the globalization of automobiles increase the localization characteristics of different regions, or will it tend to be standardized and unified like iPhones?
Sun Guang: Standardization will save enterprises costs and allow consumers to buy more affordable products. However, consumers' individual needs for products cannot be fully met. A compromise attitude is to develop different models to meet the needs of different consumers on the basis of platformization.
For example, the Great Wall Motor Lemon Platform is a global high-intelligence modular technology platform that can support the five major model levels of A0, A, B, C and D, covering the model design of SUVs, cars and MPVs.
[ 02 Territory Expansion ]
At the beginning of this year, Great Wall Motors officially accepted the Brazilian plant and announced the Brazilian strategy: 100% electrification products and 11.5 billion yuan of deepening investment.
According to the official statement of Great Wall Motors, Great Wall Motors will launch the GWM brand and the Euler brand in the Brazilian market, and the GWM brand will introduce three category brands of tanks, Haval and Great Wall Cannon, and Euler will position itself as a high-end pure electric brand; in the next 3 years, it will launch 10 100% new energy power products in Brazil, including 4 pure electric vehicles and 6 hybrid vehicles, and the first product is planned to be listed in the fourth quarter of this year.
Sohu Automobile: What led to Great Wall Motor's acquisition of Daimler's Brazilian plant for this overseas investment?
Sun Guang: First of all, in 2021, Great Wall Motors proposed the "2025 Strategy" to accelerate the development of globalization. Brazil is one of the world's major auto markets, but also the largest economy and auto market in South America, the acquisition of the Brazilian plant, in line with the globalization strategy direction of Great Wall Motors, will play an important supporting role for Great Wall Motors to expand the entire South American market.
Secondly, at the market level, after sufficient market research, it is found that Brazil currently has great opportunities and potential, and Great Wall Motors products and technologies meet the needs of Brazilian consumers for smart, clean new technologies and new experiences.
In addition, the government encourages foreign auto brands to invest in development, carry out localization production, and invest in the construction of local industrial chains, which is also the need for the high-quality development of the Great Wall in Brazil, which is conducive to the development and production of products that are more in line with the habits of local users.
After many efforts, Great Wall Motors successfully acquired the Brazilian factory, quickly laid out intelligent and new energy vehicles, and accelerated the implementation of the South American regional strategy.
Sohu Automobile: What is Great Wall Motor's internationalization goal in the next three to five years? Which regions will be exported and why?
Sun Guang: In terms of products, Great Wall Motors' products in overseas markets should be synchronized with those in China, targeted research and development according to regional characteristics and needs, and establish brand recognition with intelligent new products;
In terms of operation, we will open up new channels, enhance the image and capabilities of terminals with refined management transformation, and actively absorb localized talents and other high-quality resources in the automotive industry chain. For example, in Thailand, Brazil, and other markets with localized factories, a higher degree of localization development is achieved to promote lasting harmony between the brand and the local area.
In terms of brand building, we must adhere to the global positioning, play with users to create and provide higher product added value. At the same time, we must continue to attack the high-potential energy market and seize the brand image highland.
Sohu Auto: How to understand the concept of "tide play co-creation", and do foreign consumers have a strong demand for "tide play co-creation"? What is the biggest difference between overseas marketing and domestic marketing?
Sun Guang: The co-creation of Tide Play is to let users have a "sense of participation" and "sense of belonging". Overseas, the origin of automobile culture is earlier than china, overseas young generation of consumers have more needs to express themselves and gain respect, it can be said that the demand for foreign consumers to "play and co-create" is very strong.
The biggest difference between overseas marketing and domestic marketing is ideological and cultural diversity. For example, due to the consideration of cultural differences, when naming the Great Wall Cannon, Great Wall Motors did naming research on overseas markets, optimized and improved the names according to the feedback of the local market, and selected names that conformed to local customs and culture. The Great Wall Gun is called CANNON in Australia and P-Series in South Africa.
[ 03 International Resources ]
With the expansion of enterprises in the global territory, how to avoid risks and how to improve investment efficiency is a problem that all enterprises that go abroad will face. Especially in 2022, the epidemic and war are intertwined with multiple uncertain factors, and "going out" is a must, but "how to go" is more critical.
Sohu Auto: The internationalization of automobile brands is a very complex matter, how can teams from different cultural backgrounds cooperate? When will we listen to The Chinese side's opinions and when will we adopt the foreign opinions?
Sun Guang: As you said, the internationalization of automobile brands is extremely complex.
Taking Great Wall Motor's Australian team as an example, a team of dozens of people, in addition to local employees, there are immigrants from britain, Italy, India, Germany, Greece, Japan, Thailand, Malaysia, Vietnam and other countries. In the face of so many cultural backgrounds, we adopt the idea of "using locals to manage locals", and use professional management with high cultural recognition of the company, which effectively improves the smoothness of team management.
At the same time, we have set up a management decision-making committee, and every week we will bring the things that need to be discussed to the meeting to discuss, so that everyone can fully respect the opinions.
Sohu Auto: What do you think is the most important element for international talents in the automotive industry?
Sun Guang: To have an open and inclusive mindset, the confidence and interest to participate in international competition, language and international communication skills are also very important. Language is a bridge of international communication, is a necessary knowledge and ability, and has to have industry expertise.
Our demand for talents is multifaceted, and not a certain quality is indispensable.
Sohu Automobile: The automobile industry is a highly globalized industry. But in recent years, with the outbreak of global shortages of chips and other components, which trend do you think the supply system of the automotive industry will develop in the future?
Sun Guang: The global shortage of chips and other components has exposed the lack of self-sufficiency of key components in China's automotive industry chain. In the future, auto companies should strengthen the integration and control of resources in the key components of the industrial chain and grasp the initiative. It is not necessary to be self-sufficient in all, but to strategically integrate some key components and components that are in line with cutting-edge trends, such as obtaining strategic resources through cooperative development and shareholding.
Sohu Auto: What do you think is the biggest challenge facing the internationalization of Chinese car companies at present?
Sun Guang: Now that the automotive industry is facing many changes, how to raise resources scientifically is a challenge and an opportunity for us.
In the face of opportunities and challenges, Great Wall Motors should adhere to the global brand positioning and provide higher product added value. We must dare to challenge the high potential energy market, seize the brand image highland, and drive the competitiveness of the system of research, production, supply and marketing of enterprises.