Author | Wang Xiaojun

Editor | Chai Xuchen

The phrase "The most competitive in the auto industry will always be next year" is gaining more significance.

At the beginning of the new year, on January 1st, Great Wall Motor's off-road brand, the profit leader—Tank, took the lead in launching its first all-terrain SUV, seizing the all-terrain track.

In the past year, Tank sold 0.23 million vehicles, becoming a true sales leader, and since the Tank brand is under Great Wall's high price range, it also drove an increase in Great Wall's overall average price per vehicle.

Great Wall's Chairman, Wei Jianjun, also emphasized that Great Wall pursues quality market share and does not engage in price wars. Currently, the new game in the industry is about who can survive longer, so from this perspective, Great Wall's measures to maintain profitability are wise, as this is essential for sustainable development.

However, changes are ongoing, and Great Wall also needs to respond to market changes by timely providing corresponding strategies and products, so as to continue achieving quality market share.

Continue to attack off-road.

The internal competition in China's Automotive Industry has become a well-known topic.

In the process of competition, each company has its own choices. The price war that lasted for two whole years has eliminated many participants, and the remaining competitors need to find a suitable path for competition to extend their survival time.

Great Wall continues to strengthen its position in the off-road market where it excels.

In 2024, Great Wall Motor's cumulative sales reached 1.2333 million units, a slight increase of 0.21% year-on-year, which is not particularly outstanding given the clear Matthew Effect in the industry; however, regarding the profits from the Tank series, cumulative sales exceeded 0.23 million new vehicles, a year-on-year increase of 42%; among them, the Tank brand's new energy models sold 107,315 units throughout the year, accounting for 46%.

Building on this momentum, Great Wall seized the opportunity and launched another new vehicle under the Tank brand on the first day of the new year—Tank 500 Hi4-Z, with a starting price of 0.3638 million yuan, with the New Year limited edition "Definitely Red" version priced the same.

Although Great Wall claims not to engage in price wars, this price is still considered quite competitive by many.

Historically, the Tank has been known for its rugged off-road capabilities; however, this time, the Tank 500 Hi4-Z emphasizes generalized off-roading, being capable of both off-road adventures and urban commuting, meeting the needs of those who want off-road capability while also needing to commute in the city.

In terms of off-road capabilities, the Tank has always been a representative among domestic brands, exploring various forms of power from RBOB Gasoline to hybrid, while laying out the strong off-road super hybrid architecture Hi4-T and the all-terrain super electric hybrid architecture Hi4-Z.

Among them, the Hi4-T technology defines the strong off-road sequence, based on off-road performance, providing a New energy experience; while the Hi4-Z technology positions the all-terrain sequence, focusing on the New energy experience and offering an all-terrain scene experience.

Therefore, this vehicle also takes into account the needs of urban commuting, becoming the first plug-in hybrid SUV on the market with an electric range of 201 km, as well as the longest electric range plug-in hybrid globally.

In addition to the strong performance of the high-priced Tank brand, another model that Great Wall pushed in the second half of last year is the Wey brand Lanshan, an SUV focused on Asia Vets, priced around 0.3 million yuan. By the end of the year, this vehicle achieved monthly sales of about 8,000 units.

With high-priced brands continuing to perform well, Great Wall has become an "outsider" in the price war.

In the first three quarters of 2024, Great Wall Motor achieved total revenue of 142.254 billion yuan, a year-on-year increase of 19%, setting a new high; the overall gross margin increased by 1.92 percentage points year-on-year to 20.76%; net income was 10.429 billion yuan, a year-on-year increase of 108.70%; net income attributable to the parent company after deducting non-recurring gains and losses was 8.374 billion yuan, doubling year-on-year.

Additionally, in the first three quarters, the comprehensive revenue per vehicle for Great Wall Motor was 0.1666 million yuan, an increase of 0.0283 million yuan compared to the same period last year, which is particularly remarkable amidst the current emphasis on reaching deeper markets and exchanging price for volume.

This presents some different answers from Great Wall to the industry amidst the cries of the price war.

Industry anxiety.

In 2024, due to the internal competition within the auto industry, many prominent figures who have long been out of the spotlight will be brought back, personally engaging in live broadcasts and marketing.

Wei Jianjun also bluntly stated that Great Wall Motor has been focused on technology in the past, not paying enough attention to marketing; some users understand the sub-brands because of representative models, but have a limited understanding of Great Wall's overall brand image.

In an environment where everyone is actively promoting, Wei Jianjun felt that 'good wine fears not the deep alley,' therefore, he has been frequently appearing in front of the camera. He frankly stated, 'In terms of communication and interaction with users, Great Wall needs to catch up.'

Although his screen presence has increased, Wei Jianjun does not believe that he and Great Wall are very anxious; he emphasized the need to adhere to the bottom line in fierce competition, 'If everyone is losing money, long-term companies will not survive, so there must be a blood-generating ability.'

However, the industry seems to still be plagued by anxiety. Despite many car manufacturers achieving sales growth, looking at the financial data for 2024, only seven major manufacturers are making a profit.

The entire industry is striving to wring out the moisture from the towels to become more competitive on price. The news that major manufacturers are demanding price cuts from supply chain companies towards the end of the year has brought the industry's anxiety back to the forefront, however, the low-price spiral resulting from price wars is bound to affect the quality of products.

Even Guangzhou Automobile Group, which used to profit from having the two joint venture brands of Guangfeng and Guangben, has turned to a loss this year. The chairman of Guangzhou Automobile Group, Zeng Qinghong, also urgently called out in June last year: 'Continuing this way is not a solution; the purpose of the enterprise is to be profitable; we should have a broad vision and a long-term strategy.'

Wei Jianjun also believes that, "The achievements of the Chinese automotive industry today are not easy to come by. It is hoped that the automotive industry will develop steadily while adjusting its breathing during the run." Specifically, "Create products that the LBX Pharmacy Chain Joint Stock can afford and are easy to use, while the enterprise can also grow. Do not pursue short-term explosive sales, but focus on the healthy development of the enterprise."

The advocacy of the two automotive leaders mentioned above is indeed reasonable, but the competition in the industry is still fierce. As long as there are eliminations, each company must work hard to compete. Great Wall Motor also needs to find a balance between quality market share and stable profits in order to win in this game of who can last longer.