Xin Lang Cai Jing·2025-09-29 10:58Core Viewpoint - Great Wall Motors is transitioning its "Great Wall Smart Selection" stores nationwide to "Weipai New Energy Direct Stores," focusing solely on Weipai brand vehicles and withdrawing the Tank models from direct sales channels [1][4][7] Group 1: Company Strategy - The transition aims to establish Weipai as the only direct sales brand under Great Wall, enhancing its presence in the high-end market while addressing the challenges faced by traditional dealerships [1][4] - The new CEO of Weipai, Feng Fuzhi, indicated that the Tank models would return to dealerships, allowing Weipai to focus on direct sales, which is seen as a solution to connect with high-end users [4][9] - Great Wall's sales data shows a significant increase in new car sales, with 115,600 units sold in August, marking a 22.33% year-on-year growth, and Weipai's sales reaching 8,028 units, up 167.51% [1][9] Group 2: Market Dynamics - The dual sales model, combining direct sales and dealership sales, has led to conflicts of interest, as dealerships can offer lower prices through external financing incentives, impacting direct store sales [6][7] - Great Wall's strategy to balance the interests of direct stores and dealerships is crucial, as the latter has a long-standing relationship with the company, complicating the transition to a direct sales model [6][7] Group 3: Financial Performance - Great Wall's net profit for the first half of 2025 dropped significantly by 36.39% to 3.581 billion, attributed to increased expenses, particularly in expanding direct sales channels [9][12] - Despite a 2.52% increase in sales volume to 568,900 units, revenue growth was only 0.99%, indicating a decline in the profitability of high-end models [9][12] Group 4: Brand Development - Weipai is positioned as a key brand for Great Wall's high-end strategy, with plans to increase the number of direct stores from 430 to over 600 by the end of the year, aiming for a total of 1,000 stores [10][12] - The brand has faced challenges, including consumer price concerns and delays in product launches, which are common issues for new entrants in the high-end market [12][13] Group 5: Industry Trends - The recovery of the traditional fuel vehicle market is beneficial for Great Wall, with a reported 13.5% year-on-year increase in sales of traditional fuel passenger vehicles in August [13] - Great Wall's strategy to maintain a balance between fuel and electric vehicles allows for greater flexibility in adapting to market changes [13]