Xin Hua Cai Jing·2025-05-03 07:58Core Viewpoint - Great Wall Motors is facing significant challenges, including a sharp decline in operating performance, with net profit down 45% year-on-year in Q1, and three of its five main brands experiencing a drop in sales, particularly the Ora brand, which saw a 54.31% decrease [1][2]. Financial Performance - In Q1, Great Wall Motors reported a revenue of 40.019 billion yuan, a decrease of 6.63% year-on-year, and a net profit of 1.751 billion yuan, down 45.6% compared to the previous year [2]. - The overall sales volume for the company fell by 6.73% year-on-year, with three out of five main brands showing a decline [2]. Sales Performance by Brand - Haval brand sales decreased by 2.45% month-on-month and 8.42% year-to-date [4]. - Ora brand sales plummeted by 53.90% month-on-month and 54.31% year-to-date [4]. - Tank brand sales fell by 8.29% month-on-month and 14.63% year-to-date [4]. - The only brand showing growth was the pickup segment, which saw a 14.97% increase year-on-year, surpassing 50,000 units in a single quarter [6]. Market Position and Strategy - Great Wall Motors is adhering to a "pan-internal combustion engine" strategy, emphasizing traditional fuel engines while other manufacturers are shifting towards electric and hybrid models [3][9]. - The company has faced criticism for slow product updates and a lack of responsiveness to changing consumer demands, particularly with the Haval H6 model, which has seen a significant decline in sales [5][10]. Industry Context - The penetration rate of new energy vehicles in China is expected to exceed 50% by late 2024, indicating a shrinking market for traditional fuel vehicles, which poses a risk to Great Wall Motors' current strategy [8][11]. - The company’s focus on internal combustion engines may limit its competitiveness in a rapidly evolving market where electric vehicles are gaining traction [9][10].