Great Wall Leaps Past Slowing China Car-Market Growth

China’s homegrown Great Wall Motors saw net profits soar 109 percent in the first half of the year on a 37 percent sales jump during the first 7 months despite a growth slowdown in the nation’s car market this year.

“First be strong, and then be huge,” is the philosophy of Wei Jiangjun, Great Wall’s chairman.

What is remarkable for a domestic brand is that its cars are priced higher than comparable models of rival brands.

“The cost to improve product quality is less than the [incremental] price increase, but it creates a completely different level of feel and value,” said Great Wall’s president Wang Fengying. “It not only wins praise from users, but also make a virtuous cycle in the quality-price ratio. Cumulatively, it improves brand value for better profits and market share. If we produces products with poor quality and low prices, a vicious cycle would occur.”

Great Wall implemented what it calls its “Three Highs” strategy in 2011 — using high-tech equipments and high-performance design, it aimed to produce high-quality products. Great Wall is focused on 21 performance indicators to meet international quality standard by 2015, including the emissions and fuel-economy requirements of global high-end markets in North America and Europe. The company has begun sales efforts in the Euro zone and hopes to enter the U.S. and other high-end markets by 2015, with 30% of sales coming from the international market by then.

The Great Wall group’s brands include Hover, Voleex and Wingle.

One of its successful models is the low-priced Hover SUV which is sold in nations in Europe and Africa as well as in China. The company generated press excitement by unveiling the Hover H7 concept featuring an imposing chrome grille and a sweeping headlights cluster that stretches almost to the A-pillar. The vehicle mates a 3.0-litre V6 engine to a 6-speed automatic gearbox for a top speed of 140 mph. The model is planned for the luxury SUV segment though no firm date was announced for its launch.