The only indicator of the survival of an enterprise is profitability.
Only with good profitability for a long time can enterprises gain room for survival in the volatile and unpredictable market. From 1886 to the present, the world's automobile industry has developed for more than 100 years and has experienced countless technological iterations and industrial changes.
Countless popular companies were eventually eliminated, including bankrupt Borgward , Sway, acquired MINI, Bentley , Rolls-Royce , etc., if they do not have good profitability, their prospects for survival are slim.
From the perspective of the times, today's so-called "transformation opportunity" in China's passenger car market, the transformation of electrification and intelligence is just a small step in the upgrading of the times.
Toyota , Volkswagen, and Honda have developed steadily for decades, relying on long-term stable profitability.
is focused on the Chinese passenger car market. There are not many companies that can achieve independent profitability. The Chinese automobile industry, which once flourished, now there are less than 10 left. Great Wall, Geely , BYD , Changan , etc. are among the few companies that achieve good profitability.
Only when you make good profits can you slowly seek development and changes on the basis of ensuring the stability of the basic manufacturing industry.
In fact, the implementation of any feasibility strategy is very slow. For a long time, the current development status of China's automobile industry has been led by new forces with annual sales of tens of thousands of units. The smart cockpit, electrification, service, and battery swap concepts produced by
, , NIO , and , Xiaopeng Automobile occupy network resources, which seems to be the core development direction of future automobiles.
But it is obvious that in the great era, this car manufacturing model that makes cars through losses and makes profits in the capital market is exchanged on the future development of the overdraft industry. It is not sustainable or has replicated value.
New forces that often cost 300,000 or 400,000 yuan are difficult to be consumer goods for ordinary people. New forces that also suffer losses in car manufacturing have had a lot of gambling mentality from the beginning.
China's main route for automobile development is still in the hands of large-scale enterprises.
Great Wall is one of the large-scale base companies, with sales of millions for many years, becoming a strong player in stabilizing the Chinese passenger car market, and also promoting the running speed of China's manufacturing industry.
According to its Q3 quarter financial report, Great Wall's revenue in Q3 this year reached 37.3 billion, an increase of more than 29%, and its net profit exceeded 2.5 billion, an increase of more than 80%. As of the end of September, Great Wall's total revenue exceeded 99.4 billion, and its net profit exceeded 8.1 billion, making it one of the few companies with positive growth.
has good profitability and is the label of Great Wall.
In the past two years, Great Wall has spared no effort to promote the transformation of high-end and intelligent products. From the current perspective, the transformation has achieved certain results, but it has also encountered some challenges.
The good news is that the continuous hot sales of the tank series and the Great Wall pickup series have driven the average bicycle price of Great Wall, and increased the price of Great Wall's bicycle from 102,700 to 124,000. In the direction of electrification, Euler has been initially successful in its implementation. At the same time, the DHT power system independently developed by Great Wall has been equipped on some models, enabling a tough and slow electrification transformation speed.
also has pressure. In the past, the Haval brand, which first obtained mainstream technology, was the latest model to get the hybrid system. In the entire new energy market, Haval brings people the illusion of falling behind, which has led to insufficient brand sales under the trend of BYD's rise this year. Although the
WEY brand first obtained mainstream technology, because it was the brand with the surname of the company's boss and insisted on the high-end development route, its biggest problem is that the price is slightly higher and it is difficult to truly form a cluster with the user group.
Currently, Great Wall's new energy development plan, except for Ora, which has pure electric models, all other models can only enjoy the promotion brought by DHT technology at most.
So, Great Wall's new energy transformation speed is slightly slower.Although
is slow, Great Wall's new energy transformation speed is very stable. On the one hand, the traditional market has taken care of, and the fuel vehicle market has not been lost. On the other hand, the improvement of brand value is tangible, paving the way for the higher-end and smoother development of the new energy market.
The thinking of traditional entrepreneurs is not just for making money. If entrepreneurs like Wei Jianjun and want to make money, there are more ways to make companies make money. What is difficult is how to build a good car in the true sense.
The emergence of new forces has made electric vehicles an unattainable product. The price of 300,000 yuan is not only an embarrassing situation where consumers cannot afford it, but also the company itself has the problem of being unable to make a profit.
Wei Jianjun's strategy is relatively more stable, which not only allows enterprises to bathe in the spring breeze of new energy transformation, gradually enhance brand value, but also allows more mainstream technologies to accompany the development of fuel vehicles.
For example, the newly launched Haval H6 DHT-PHEV model has a comprehensive configuration that is almost the same as the Song PLUS DM-i, with a price of 3,000 yuan lower. It also has a 1.5T turbocharged engine, which has a better driving experience.
, which also supports the consumer market, is the Haval H6, which sold millions of units.
can be seen that Great Wall has its own way of handling cost control and brand value operation. It not only has more designated brands, but also has strong profitability.
In terms of traditional fields, Great Wall Cannon has become a strong man in the absolute sense of the Chinese pickup market, who else can do this? In the fuel SUV market, the Haval brand is still the first-tier product, with a brand sales of 50,000, making it the first choice for home SUVs.
new energy market planning, partly assigned to EV's EV's Euler, and the other part cooperates with fuel vehicles to create a high level of civilian value. The development of Haval and WEY brands is gradually making efforts.
Because the hybrid model has developed later, Great Wall has lagged behind in this market for the time being, but the new energy market is by no means what some people say, "If you come late, you will have no tickets."
Passenger Car Association data shows that the sales growth rate of PHEV models in September exceeded 170%, which is the largest direction of power system growth, with stronger power and lower fuel consumption, and no anxiety disorders. It is the technical direction to replace fuel vehicles in the future.
comes late but does not mean there is no ticket. Whether you have core competitiveness is the key. Negating DHT technology in advance is a hasty conclusion.
Unlike other companies, Great Wall is indeed slower in pace, but it is basically not wrong. The first batch of SUV models in China were born in 2004. The domestic production of CR-V caused an SUV storm. Chery launched the Tiggo in 2005.
Haval H6, which dominated the Chinese passenger car market for 10 years, appeared in 2011. It can be said that it is the latest one among major companies to produce SUV, but it is the most successful.
For Great Wall, achieving abundant technical reserves, stable quality control and excellent profitability, reducing costs and increasing efficiency, and user operations are the key to victory.
At present, honeycomb and DHT are the core keys of Great Wall's stable operation in the new era. As the most profitable category, Great Wall can reap many years of capital. On this superior basis, it is slowly promoting high-end upgrades and intelligent transformation. The focus of Great Wall has not yet arrived in its true sense.
After all, DHT technology has just been implemented, but we have seen that Great Wall's crazy profitability from January to September this year is truly real strength and cannot be achieved by all companies.
Wei Jianjun's profits are based on not engaging in capital, not hyping real estate, IT and 3Ch industries. For him, car manufacturing is the fundamental way to promote the development of national industry. The greatest thing is not just to do a good job in chips, autonomous driving, and make the brand high-end, but also to repeat a boring thing and do it to the best.
