Haval H8 failed, Great Wall needs external technical backup to win in SUV strategy

Gasgoo.com (Shanghai July 27) - Haval H8, the newly launched SUV from Great Wall Motor, reports sales slide and other problems against great expectation of the automaker, which indicates a hidden flaw of lacking external technical backup in the mega SUV strategy of the company compared with its rival joint-ventures in China.

For more than three months of the publication of Haval H8, the model only sold 2,671 units. Although Haval H8’s even higher-end successor Haval H9 has fixed some troubles that have happened to Haval H8, the SUV strategy still couldn’t stop losing its previous glory.

Thanks to a series of movements to strengthen SUV, including the establishment of the independent Haval brands, suspending cars units for the development of SUVs, Great Wall has won the bet of focusing on SUV. The company reported overall sales of more than 20% growth rate for several consecutive years.

However, the previously preferential situation has been changed into overall downturn in Chinese vehicle market with a fiercer competition in SUV. As a domestic brand, Great Wall has taken the pressure of selling price cutting from joint-ventures, who have higher premium price and price cutting scope.

One of the most frequently worried weaknesses of Great Wall is the lacking of external technical backups. In recent years, many joint-ventures in China have been strengthen input of techniques from foreign owners, and other domestic automakers have managed to increase their technique through purchase whole vehicles manufactures and other technical platforms. Great Wall hasn’t sought for foreign technical backup.