GWM 2025 strategy: huge increase in sales and revenues

China has been the biggest auto market in the world for many years and thanks to many favorable policies, China’s new energy vehicle (NEV) and intelligent and connected vehicle segments also saw significant progress in the past several years. By virtue of their rapid development, NEVs and smart vehicles have become the development engine of China’s automotive industry, giving the industry important opportunities.

And also, driven by the country’s carbon peak and carbon neutrality goals, along with other plans in the said emerging segments, China’s auto industry will definitely have a better development in the coming years.

Several days ago, Wang Chuanfu, chairman and president of BYD Company, predicted that NEV sales in the biggest auto market will gain a share of 70% among all new vehicles sold in 2030, and that Chinese auto brands have taken the lead over foreign brands in technologies.

Photo credit: GWM

Wei Jianjun, chairman of Great Wall Motor (GWM), hold similar opinion. “In NEV segment, China’s vehicles have much more advanced technologies while Chinese brands have caught up with, or even outperformed foreign brands in intelligent vehicle segment. China’s auto industry has ushered in a better era,” the executive said at the company’s 2025 strategy launching ceremony.

But Chinese auto brands must enhance their advantages within 3 to 5 years if they want to surpass foreign brands in true sense and local auto brands only have one chance to surpass, the executive added.

Wei Jianjun delivering a speech at the strategy launching conference; photo credit: GWM

For all these opportunities, GWM want to grasp them to strengthen its competitiveness and be a leader in emerging segments. Thus, the top SUV and pickup manufacturer in China set up an annual sales target of 4 million vehicles for 2025, and new energy vehicle (NEV) sales will account for 80% of its annual sales. In 2025, the automaker expects its revenues will be RMB 600 billion ($92.858 billion) and in the next five years, its cumulative R&D investment will be up to RMB 100 billion ($15.476 billion).

GWM’s annual sales have surpassed 1 million vehicles for 5 consecutive years. Even in 2020 when COVID-19 hit the industry hard, the automaker’s annual sales increased by 4.8% to 1,111,598 vehicles. Last year, its achieved overall revenue of RMB103.283 billion.

In the coming years, GWM will carry out comprehensive and thorough innovation and transformation based on four strategic positions, including global layout, big investment in research and development, great enterprise transformation and large-scale user operation, to build sustainable competitiveness and accelerate the transformation to a global technology-driven mobility company.

Integrated Pack Technology; photo credit: GWM

Apart from expanding its R&D, production and sales footprint across the world, GWM also makes continuous efforts in branding, technology and talents. As part of its 2025 strategy, the company will invest a total of RMB 100 billion in R&D in the coming 5 five years to strengthen technology advantages and offer more environment-friendly, smarter and safer products. For this goal, GWM will attract talents all over the world. By 2023, it aims to have 30,000 R&D staff, 10,000 of which will work on software development. Besides, GWM aims to become carbon neutral in 2045.

For all its six brands, GWM Pickup, positioned as a pickup leader, aims to be one of the TOP 3 pickup makers around the world; Haval, as a top SUV maker, will continue to work on economical SUV models; WEY, as a next-generation smart vehicle brand, is committed to offer smart user experience; ORA, as a brand the female likes most, will focus more on urban mobility; Tank expects to be NO.1 off-road vehicle brand worldwide; Shalong, as a luxury and smart BEV brand, aims to create superlative ride experience.

In terms of products, the first product of Shalong will start sales in 2022 while its ORA brand aims to be the best-selling NEV brand in 2023 with global sales over 1 million vehicles.

Currently, GWM’s development cycle can be as short as 11 months. In this year, GWM will launch more than 10 new models, which will increase to more than 60 models in 2023 with an annual production and sales of 2.8 million vehicles. By 2025, GWM will offer more than 50 NEV models.

As for production, via the adjustment of energy structure and the application of low-carbon process, GWM will have its first zero-carbon factory and establish its own circulatory and renewable system for automotive supply chain to maximize economic, environmental, and social benefits.

Wei Jianjun pointed out that the next five years are vital for auto industry’s transformation and Great Wall Motor is well prepared to accelerate its pace in the new track.