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Export Strategy of Great Wall Motor: Global Expansion and Multi-Dimensional Breakthroughs

Export Strategy of Great Wall Motor: Global Expansion and Multi-Dimensional Breakthroughs

Introduction

As a leading enterprise in China’s automotive industry, Great Wall Motor has established a significant competitive advantage in the global market. With cumulative exports exceeding 1.8 million units across over 170 countries and regions, and the establishment of full-process production bases in Russia, Thailand, Brazil, and other locations, the company has upgraded its strategy from “trade exports” to “ecological globalization.”

In this article will analyze Great Wall Motor‘s approach to driving high-quality growth through its globalization strategy, focusing on dimensions such as export sales elasticity, market layout, brand building, and new energy transformation.

Export Sales Volume and Profit Elasticity

1. Overview of Export Sales Volume

  • Growth Trend
    • Great Wall Motor began exports in 1998, initially focusing on pickups and SUVs.
    • In 2006, it set the goal of achieving a 1:1 ratio between domestic and international sales, with exports reaching 30,000 units that year, accounting for 20% of domestic sales.
    • By 2023, exports had grown to 316,000 units, accounting for 25.68% of total sales;
    • In 2024, exports surpassed 453,000 units, with a growth rate of 43.4%, and the proportion increased to 36.7%.
  • Driving Factors
    • Product Competitiveness: Pickups (such as the Fengjun series) and SUVs (Haval H6, Tank 300) are in high demand in developing countries.
    • Market Demand: Emerging markets like Russia and Southeast Asia have low vehicle ownership rates (Russia has 388 vehicles per 1,000 people), coupled with market vacancies left by the withdrawal of European and American brands.
    • Channel Expansion: With 1,400 distribution channels globally, the Great Wall Motor holds over 5% market share in regions like Australia and Chile.

2. Profit Elasticity Analysis

  • Profit Contribution: Export operations contributed 39% of gross profit in 2024. Although the export gross margin decreased from 21.1% in 2023 to 18.8%, scale effects (44.6% sales growth) still supported profit growth. The Russian market is particularly critical, with a net profit margin of 7%, far exceeding other regions.
  • Reasons for the Difference
    • Cost Control: Localized production (such as the Tula factory in Russia) reduces tariffs and logistics costs, with a localization rate of 65%.
    • Product Structure: The proportion of high-margin models has increased, such as the Tank 500, which is priced at approximately 500,000 yuan in Russia, with a gross margin exceeding 25%.

Potential of the Russian Market

1. Market Status

  • Sales Volume and Market Share: Sales in Russia reached 218,400 units, accounting for 50% of Great Wall Motor total exports, with a market share of 15%, ranking second among Chinese brands (behind Chery),in 2024.
  • Market Potential: Russia’s annual vehicle sales are approximately 1.8 million units. Due to sanctions, after the withdrawal of European, American, Japanese, and Korean brands, Chinese brands’ market share surged from 7% in 2021 to 60% in 2024.

2. Competitive Advantages and Growth Forecast

  • Product Adaptability: Four-wheel-drive models developed for Russia’s harsh cold climate, with the Haval F7 becoming a bestseller.
  • Channel and Brand: After 15 years of market cultivation, GWM has established 120 dealers, with brand awareness ranking first among Chinese automakers.
  • Future Outlook: Sales are projected to reach 240,400 units by 2025, but geopolitical risks and potential backlash from local brands must be closely monitored.
great wall motor's iconic building

Overseas Market Strategy

1. “ONE GWM” Strategy

  • Strategic Content: Integrating five major brands including Haval, Tank, and ORA, implementing a “one brand, one market” differentiated layout to avoid internal competition. For example, Tank targets high-end off-road vehicles, while ORA focuses on new energy vehicles.
  • Implementation Results: In 2024, Haval accounted for 70% of the Russian market, and Tank accounted for 20%; in the Thai market, ORA’s pure electric models accounted for over 30%.

2. Global Layout and Localized Production

  • Production Facilities: Tula Plant in Russia (annual capacity of 150,000 units), Rayong Plant in Thailand (serving ASEAN markets), and Iracema Polis Plant in Brazil (covering South America).  
  • Cost Advantages: The KD (knock-down assembly) model reduces tariffs, such as the CKD project in Malaysia, which lowers the final price by 15%.
  • Future Plans: South American production capacity to be increased to 80,000 units by 2025, with the Middle East and African markets penetrated through the KD model.

Brand Influence Of Great Wall Motor

1. International Recognition

  • Market Recognition: In markets such as Russia, Australia, and Chile, GWM ranks among the top 3 Chinese brands, with brand premium capabilities exceeding those of Chery and Geely.
  • Sponsorship and Marketing: Sponsoring the Australian Open and the Russian Ice Hockey League to reinforce a sporty, rugged brand image.  

2. Brand Building Measures  

  • Digital Marketing: Showcasing intelligent features on TikTok and Instagram, such as voice interaction in the third-generation Snapdragon cockpit.  
  • User Co-creation: Launching “user-customized color schemes” in Brazil to enhance engagement.

New Energy Transition

1. Current Status of New Energy Exports

  • Sales and Market Share: In 2024, new energy vehicle exports reached 13,000 units, accounting for 4% of total exports, with primary markets being Thailand (Ola) and Europe (Wei brand plug-in hybrids).
  • Potential Markets: Southeast Asia (Thailand, Malaysia) has a new energy penetration rate below 5%, with policy subsidies driving demand.

2. Transition Strategies and Challenges

  • Technological Reserves: Cobalt-free batteries, hybrid DHT technology, range exceeding 1,000 km, and adaptability to high-temperature and high-humidity environments.
  • Challenges: BYD is squeezing Haval H6‘s market share in Australia with the Sea Lion 06; the European market must address carbon tariffs.

Product Structure Optimization

1. Current Status and Competitiveness

  • Main Models: SUVs account for 60% (Haval H6, Tank 300), pickups 25% (Fengjun), and new energy vehicles 15%.
  • Premiumization Breakthrough: The Tank 500 is priced 50% higher in Russia than in China, with a 5-percentage-point increase in gross margin.

2. Optimization Measures

  • Regional Customization: High-temperature air conditioning systems for the Middle East and ethanol-fueled models for South America.
  • New Energy Matrix: Plans to launch 10 pure electric models by 2025, covering the A0 to C segments.
great wall motor's microchip

Intelligent Technology R&D

1. Technology Application

  • Intelligent Cockpit: The third-generation Snapdragon platform supports multi-language interaction, with a customer satisfaction rate exceeding 90% in the Russian and Australian markets.
  • Autonomous Driving: L2+ level systems are standard on the Haval H6, with city NOA functionality planned for launch by 2025.

2. Competitive Advantage Enhancement

Additionally, in terms of differentiated experiences, in Australia, the Smart Parking feature drove a 30% increase in sales of Haval First Love.

Conclusions and Outlook

1. Key Achievements

  • Scale Breakthrough: Export share increased from 20% to 36.7%, with Russia and South America becoming key growth pillars.
  • Model Innovation: Transitioned from trade exports to technology exports, with the Tula plant becoming a benchmark for “Made in China.”

2. Challenges and Recommendations

  • Risk Warning: Excessively high profit share from the Russian market (50%), with geopolitical fluctuations impacting stability.
  • Strategic Recommendations
    • Market Diversification: Accelerate expansion into emerging markets such as Mexico and the Middle East/Africa.
    • Technological Depth: Intensify R&D in solid-state batteries and intelligent driving, benchmarking against Tesla and BYD.

In short,Great Wall Motor‘s globalization journey not only reflects the rise of China’s automotive industry but also provides the industry with a model for transitioning from “product globalization” to “ecosystem globalization.” In the future, its ability to maintain leadership in the new energy and intelligentization sectors will determine whether it can truly join the ranks of global top-tier brands.We’ll keep an eye on it.

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