Core Insights - The interview with Wei Jianjun, Chairman of Great Wall Motors, reveals the company's strategy to navigate the challenges in the Chinese automotive market, emphasizing a shift from chaotic competition to value-based competition [5][23]. Group 1: Market Context - In 2025, the Chinese automotive market is experiencing an 8% year-on-year increase in passenger car sales, but industry profit margins have dropped to 5.1%, the lowest in five years, due to issues like excessive marketing and homogenized competition [1][5]. Group 2: Company Strategy - Wei Jianjun advocates for a long-term approach to overcome market challenges, encapsulated in the principle of "integrity and conscientious manufacturing," which serves as a guiding star against industry volatility [6][8]. - The company has committed over 10 billion yuan in R&D for three consecutive years, with a projected R&D investment ratio of 5.2% in 2024, positioning it among the leaders in domestic automotive R&D [8][9]. Group 3: R&D and Innovation - Great Wall Motors has established a robust R&D framework, including advanced facilities like the environmental wind tunnel and Asia's largest independent safety testing lab, reflecting its commitment to high-quality vehicle development [9][10]. - The company has a team of 23,000 engineers and has applied for nearly 50,000 patents, with over 30,000 granted, of which more than 40% are in the field of new energy [8][12]. Group 4: Global Expansion - Great Wall Motors has established three full-process bases in Thailand and Brazil, along with KD factories in Ecuador, and has over 1,400 overseas service channels, achieving cumulative overseas sales of over 2 million vehicles [10][12]. - The company's global strategy focuses on comprehensive output of technology, industry, and services, with overseas sales projected to reach 454,100 units in 2024, marking a 44.61% year-on-year increase [12][21]. Group 5: Value Principles - The company adheres to the "Four Not to" principles, which include respecting capital, valuing users, maintaining ethical standards, and protecting the industry ecosystem, aiming to reject short-term profit temptations [15][16]. - These principles are operationalized through a "user value audit" mechanism, ensuring that new vehicles meet rigorous real-world testing standards before market release [15][16]. Group 6: Strategic Framework - The "Four Modernizations Strategy" includes equal emphasis on fuel and electric vehicles, diversification of new energy sources, and strategic globalization, which are not isolated but interconnected approaches to enhance competitiveness [16][18]. - The company aims to ensure that fuel and electric vehicles meet the same quality standards, which has led to growth in a declining fuel vehicle market [18][20]. Group 7: Future Outlook - Wei Jianjun expresses optimism for the future of the automotive industry in China, suggesting that with perseverance, the country could emerge as a leading automotive power in 20 years [23].

Core Insights - Longhua Automobile plans to launch a supercar by the end of next year, showcasing its ambition to enter new market segments despite challenges in the automotive industry [1][7] - The company emphasizes value creation, integrity, and customer satisfaction as its core principles, which guide its operations and strategic decisions [1][4] Investment and R&D - Longhua has invested over 3 billion yuan in a state-of-the-art wind tunnel testing facility, which can simulate various environmental conditions, making it one of the few in the country [2][3] - The company has consistently invested over 10 billion yuan annually in R&D for the past three years, totaling over 50 billion yuan, and has established 11 core technology testing labs [3][8] - Longhua has completed over 600 million kilometers of vehicle validation, demonstrating its commitment to safety and quality [3][4] Safety and Quality Assurance - The company adheres to a strict quality control process, emphasizing safety as a top priority, with significant investments in crash testing and safety validation [4][9] - Longhua's recent crash tests showcased the effectiveness of its safety features, with high costs associated with the testing process, reflecting its dedication to protecting drivers [4][9] Strategic Vision - Longhua's strategic approach includes a "Four No's" principle, focusing on long-term value rather than short-term gains, and maintaining integrity in its operations [8][12] - The company aims for a global presence, with local production and job creation in international markets, such as achieving a 50% localization rate in Thailand and creating 2,000 jobs in Brazil [10][11] Market Performance - In Q2, Longhua reported revenue of 52.316 billion yuan, a year-on-year increase of 7.72%, and a net profit of 4.586 billion yuan, reflecting a strong performance in a challenging market [9][10] - The company sold 312,000 vehicles in Q2, marking an 11.63% increase year-on-year, indicating robust demand and operational efficiency [9][10] Future Outlook - Longhua is preparing to launch its supercar after four to five years of development, supported by significant investments in technology and talent acquisition [7][8] - The company advocates for a balanced approach to energy sources, promoting a diverse range of vehicle technologies, including internal combustion, hybrid, and electric vehicles [11][12]

Core Viewpoint - The automotive industry is currently facing intense competition, leading to unhealthy practices that obscure the essence of car manufacturing and genuine user needs [1] Group 1: Company Values and Principles - Great Wall Motors emphasizes the importance of integrity and conscience, adhering to principles such as respecting capital without being controlled by it, valuing users without excessive marketing, and maintaining a bottom-line mindset [5][7] - The company aims to break away from follow-the-leader competition by promoting technological integration and a global strategy, thereby reshaping its value chain [7] Group 2: Technological Investment and Innovation - Great Wall Motors has invested over 10 billion in R&D for three consecutive years, with a projected R&D investment ratio of 5.2% in 2024, and has developed key technologies such as the 4.0T V8 engine and Coffee OS 3.0 [8][12] - The company has established advanced testing facilities, including China's first dedicated automotive wind tunnel, to ensure product safety and performance [9][11] Group 3: Safety and Compliance - Great Wall Motors prioritizes safety as a non-negotiable standard, achieving multiple five-star safety ratings from C-NCAP, EuroNCAP, and A-NCAP, and establishing a global safety compliance chain [11] Group 4: Global Market Strategy - The company has transitioned from a product export model to an "ecological overseas" model, focusing on R&D, production, supply, sales, and service [12] - Great Wall Motors is implementing a "four modernization strategy" to address diverse global market demands, including equal emphasis on fuel and electric power, and a comprehensive approach to energy sources [14][15] Group 5: Future Vision and Commitment - The company is committed to a global strategy, aiming to integrate into international markets and adapt to local policies while promoting its brand [17] - Great Wall Motors believes in the potential for China to evolve from a major automotive manufacturer to a strong automotive power, emphasizing the need for sustained effort and innovation [17]