The Great Wall, once known as “Chinese magic car”, is now rapidly falling from the “altar”.
At the close on March 9, Great Wall Motor disclosed its sales in February. According to the announcement, Great Wall Motors sold a total of 70,800 new cars in February this year, a sharp drop of 20.5% year-on-year; while sales in January had fallen by 19.59% year-on-year, Great Wall Motor’s sales in February were still unsatisfactory. Obviously, Great Wall Motor’s sales decline has not stopped.
In fact, investors may not be too surprised by the decline in Great Wall Motor’s sales. After all, under the influence of the “chip does not match the publicity” of Ora Hao Mao in the fourth quarter of last year, Great Wall Motor’s reputation has collapsed. The decline in sales also makes sense.
And from its stock price performance can also see the current plight of Great Wall. According to statistics, Great Wall Motor’s share price has been falling since it hit an all-time high of 69.8 yuan in October last year. As of the close on March 18, Great Wall Motor’s share price was only 28.47 yuan. Compared with the high point, Great Wall Motor’s share price was only 28.47 yuan. It has been cut in half, and the market value has plummeted by 381.7 billion.
In terms of sales volume and stock price, there are various signs that Great Wall Motors has come to the brink of danger.
Sales decline, Great Wall Motors under “crisis”
“Ora is a good cat, the car that can bully women the most” is a mockery of netizens’ slogan for Ora’s good cat.
As a car brand of Great Wall Motors specially built for women, since the car owner revealed that the “chip does not match the propaganda” in the fourth quarter of last year, ORA and Great Wall Motors have been pushed to the air of public opinion.
After fierce criticism from netizens, car friends and the media, the image of “domestic car” finally established in the minds of consumers has also begun to change.
Looking back on the development of Great Wall Motors in recent years, in fact, this is not the first time that it has been exposed to quality problems by consumers.
According to the statistics of China Automobile Consumption Network, since October last year, Great Wall has been in the forefront of the number of complaints, and by January this year, the number of complaints of Great Wall has reached 76, which is the most domestic car company with the number of complaints. .
In addition to many complaints, many of Great Wall’s models are “riddled with faults”, except for the “chips that do not match the publicity” of Euler’s good cat, like the best-selling Harvard H6 of Great Wall, which has been complained by consumers” The quality of the product can be seen from many problems such as the new car cannot be started, the steering system is faulty, the version of the car navigation is low, and the B-pillar is abnormal.
Under the influence of quality problems, Great Wall Motors, whose reputation has gradually collapsed, has also been “voted with feet” by consumers.
According to the sales data disclosed by Great Wall, since November last year, the sales of Great Wall Motors began to show a downward trend.
Among them, sales in November were 122,500 units, down 15.65% year-on-year; sales in December were 162,300 units, up 8.17% year-on-year; sales in January 2022 were 110,000 units, down 19.59% year-on-year; sales in February were 70,800 vehicles, down 20.5% year-on-year. In the four months after the problem was revealed, there were three months of sharp declines in sales.
There is no doubt that Great Wall Motors is being abandoned by consumers due to the quality problems of its cars; it is not difficult to see from the declining sales that today’s Great Wall Motors has slowly come to the brink of danger.
Weak transformation
In addition to the problems mentioned above, Great Wall Motor is currently facing a huge challenge – the lack of transformation into new energy sources.
As we all know, new energy vehicles have become the general trend at present. Whether it is the high-end brand BBA, or the three Japanese giants Toyota, Honda and Nissan, and even domestic car companies BYD, Wuling and even Geely, they are all actively transforming to new energy.
Among them, BYD has to be mentioned. With the successful transition to new energy, BYD’s stock price has soared to a maximum of 333.33 yuan, and its market value is close to the 1 trillion mark. Even with the recent sharp correction, BYD’s current market value is still 619.5 billion yuan.
On the other hand, Great Wall Motors, despite the transformation of major car companies, is still “deadly fighting” fuel vehicles. According to data disclosed by the media, at present, the vehicles produced and sold by Great Wall Motor are still mainly fuel vehicles, of which 85% will be accounted for in 2021; the sales of pure electric Euler and hybrid WEY will total less than 200,000 vehicles in 2021. , accounting for only about 15%.
Due to the lack of transformation, Great Wall Motors has also become the first object to be abandoned in the capital market. While BYD’s share price continues to hit new highs, Great Wall Motor’s share price has already fallen. Although there is also the impact of the Euler chip incident, I am afraid that the lack of transformation is also one of the important reasons for the flight of funds.
In fact, Wei Jianjun is not aware that new energy is already a major trend. In the 2025 strategic plan released in the middle of last year, Great Wall Motor mentioned: by 2025, it will achieve global annual sales of 4 million vehicles, 80% of which are new energy vehicles; operating income will exceed 600 billion yuan; in the next five years, the cumulative R & D will be The investment reached 100 billion yuan.
However, from the current point of view, with the sales of new energy vehicles only 200,000 in 2021, it is not easy to achieve this goal in just 4 years.
English
Arabic
Dutch
French
German
Hindi
Italian
Portuguese
Russian
Spanish
Zulu