On October 25, Chinese legacy automaker Great Wall Motor (GWM) held a press conference where the top executives at the company delved into the GWM's overseas expansion strategy, revealing the company's ambitious plans for global growth. 

Currently, GWM's global sales network spans over 170 countries and regions worldwide, including Europe, North America, Japan, South Korea, Latin America, ASEAN, the Middle East, and Africa.

In September 2023, the automaker sold 30,018 vehicles outside of China, representing a year-on-year soar of over 60%. In the first three quarters of this year, GWM’s export volume skyrocketed 89.45% from the previous year to 211,696 units.

Parker Shi; photo credit: GWM

Mr. Parker Shi, Head of GWM International and VP of GWM Group, pointed out during the interview that the total auto export volume for China may surpass 5 million units this year. Last year, GWM sold around 172,000 vehicles in overseas markets, and this year, its goal is to achieve overseas sales of 300,000 vehicles. Behind this impressive target lie a series of proactive strategic initiatives that underscore GWM's unwavering confidence in the international market.

Overcoming challenges to achieve export goals

The leap from 172,000 units to 300,000 units signifies major breakthroughs for GWM in international trade, KD assembly, and local manufacturing. Mr. Parker Shi stressed that achieving this goal requires overcoming numerous challenges, from real estate development to equipment debugging and collaboration with local governments. However, Great Wall Motor's determination and courage have enabled them to surmount these difficulties and pioneer innovative measures.

Focusing on brand building and core values

Mr. Parker Shi emphasized that GWM not only seeks sales volume growth but also places great importance on brand building and conveying core values. In recent years, Great Wall Motor has undertaken extensive innovations, one of which was altering the dealer authorization model. He recounted the company's strategic decision in 2014 when the dealer authorization model dominated the company’s operations in overseas markets. However, GWM made the decision to establish subsidiaries to better control the end-user market. 

Photo credit: GWM

This step not only influenced brand building in specific markets but also reinforced the communication of core brand values for GWM. The company established subsidiaries in places like Australia, Mexico, and South Africa to facilitate long-term brand management, opening up new innovative opportunities in overseas markets.

Challenges and opportunities for GWM in international NEV markets

New energy vehicles (NEVs) play a crucial role in GWM's international expansion plans. Mr. Qiao Xianghua, the Executive President of GWM Europe, noted that Great Wall Motor's strategic shift toward NEVs is based on a deep understanding of the international market. “China, the United States, and Europe are considered the three major markets for NEVs, and thus, Great Wall Motor is focusing on these markets,” he said. For example, in order to smooth out its journey to Europe, the company has actively prepared, including product certification, market research, and team building, to meet Europe's demand for environmentally friendly, sustainable, and low-carbon solutions.

Building a complete ecosystem

In addition to exporting NEVs to international markets, Great Wall Motor is dedicated to introducing an entire ecosystem into target markets. This includes the construction of charging facilities, integration of charging services, and efforts to meet local user demands. 

Mr. Qiao pointed out that users often have concerns such as charging and range when buying electric vehicles. GWM is actively collaborating with governments and media to provide solutions that meet local market needs. Mr. Qiao stated, "The development of the European NEV industry is somewhat slower than in China. We have invested 220 million euros in the first phase of the SVOLT Energy battery factory in Saarland, Germany and we will make even larger investments in the future. So, in addition to exporting complete vehicles, we need to consider the entire parts ecosystem as well." 

SVOLT battery; photo credit: SVOLT

Notably, Great Wall Motor has previously disclosed that it also holds plans to set up a factory in Europe, which is not a surprise as the automaker aims to realize a local production rate of 40% by 2025. 

In terms of ecosystem integration, Mr. Qiao Xianghua cited, "For digitalized cabins and software-defined vehicles, Great Wall Motor needs to build a local ecosystem in Europe and integrate local apps into the infotainment system." This includes aspects such as voice control, navigation, and more, all of which require local adaptation.

The enormous value of a long-term strategic layout 

During its international expansion, GWM faces multiple challenges, including policy issues, data protection, and even the ongoing European Union anti-subsidy investigations. Nevertheless, the company actively embraces these challenges, firmly believing that fair competition and a long-perspective layout is the key to success. 

Mr. Parker Shi emphasized that for Chinese brands to venture into international markets, the long-term value of strategic layout far outweighs short-term economic returns. The core of this perspective is that the company needs to plan on two dimensions: product layout and market layout.

Photo credit: GWM

Market layout requires comprehensive consideration of global markets. First and foremost, political friendliness is a critical factor, starting at the government level to ensure smooth cooperation. Additionally, factors like industrial policies and market size need to be systematically considered, making this a complex undertaking. The company conducted multiple studies and reports before venturing into overseas markets to determine if it had the strength and opportunities for success.

Great Wall Motor takes proactive steps in its layout, as seen in its expansion into the Mexican market. For example, despite facing a 20% tariff, the company decided to enter a country with a market size of 1.2 million vehicles.

In November 2022, a team of four, led by Mr. Bryan Yao, LATAM Managing Director at GWM, embarked on a bold mission: to establish GWM's presence in the Mexican market from scratch. At that time, GWM had no subsidiaries or offices in Mexico, and the team set up a makeshift office in hotels, gradually assembling a local workforce of 25 employees.

By the end of December 2022, GWM's Mexican subsidiary had completed its business registration. However, a unique challenge emerged – there were no physical vehicles available locally. Undeterred, Yao and the team resorted to presenting their vision using well-prepared PowerPoint presentations.

Haval H6 launch in Mexico; photo credit: GWM

Their relentless efforts paid off when, in September 2023, GWM launched its inaugural model in Mexico, the Haval H6 HEV. This remarkable achievement took less than a year from the moment GWM began its journey to expand in the Mexican market.

Turning anti-subsidy investigations into opportunities

In international market competition, the company emphasizes the pursuit of a fair, just, transparent, and open competitive environment. However, GWM also recognizes that no one is willing to forfeit significant economic interests. Chinese brands in international markets face fierce competition from Japanese, Korean, and Western brands, necessitating ongoing strategic insights and decision-making. The essence of competition lies in who can be faster, more daring, and more capable.

Photo credit: GWM

Regarding the EU's anti-subsidy investigation into Chinese NEVs, Mr. Parker Shi views this as an opportunity. He emphasizes that success and maturity come through setbacks and challenges. Setbacks and challenges not only drive progress but also help companies better understand the rules of competition. Therefore, the company should actively address the pressure brought by the EU's anti-subsidy investigation, demonstrating determination and resilience to adapt to the ever-changing market environment. 

In fact, Mr. Mu Feng, President of GWM, earlier this week announced that GWM had proactively tackled the EU's anti-subsidy investigation, being the first Chinese automaker to submit relevant information as corresponding response on October 11.

Photo credit: Mu Feng's Weibo

This series of measures represents GWM' long road to success in international markets. The company not only focuses on expanding sales volume but also on brand building, conveying core values, and global market layout. While overcoming various difficulties and challenges, Great Wall Motor demonstrates strong determination and courage, dedicated to advancing the development of the NEVs. The automaker firmly believe that guided by fair competition and strategic insights, Chinese brands will achieve long-term success in international markets.