A few days ago, Forbes released the 2014 Global Enterprise 2000 list, and six Chinese auto companies were shortlisted. The single aspect shows that the business situation of Chinese car companies is constantly improving, but on the other hand, it is also a big alarm for the Chinese auto industry.
Forbes public data shows that the six companies ranked among the top 2000 are SAIC, Dongfeng Motor, Great Wall Motor, BYD, Changan Automobile and Guangzhou Automobile Group. It is gratifying that SAIC, Dongfeng Motor and Great Wall Motor ranked among the top 1000, and Changan Automobile and Guangzhou Automobile Group entered the 2000 list for the first time.
After reading the data behind the list, the reporter found that the strength of Chinese car companies is far less than the fact of multinational car companies. Although six Chinese automakers were among the top global companies in 2014, they were still less than any of Toyota, Volkswagen and Daimler. In the 2000 list, Toyota ranked first in the automotive industry, Volkswagen Group ranked second, and Daimler ranked third. Toyota's 2013 sales revenue was US$255.6 billion, with a profit of US$18.8 billion and assets of US$385.5 billion. The Volkswagen Group's 2013 sales revenue was US$261.5 billion, with a profit of US$12 billion and assets of US$446.9 billion. Daimler The company's 2013 sales revenue was $156.6 billion, with a profit of $9.1 billion and assets of $322.2 billion. In contrast, the six Chinese automakers have accumulated sales revenue of US$120.5 billion, cumulative profits of US$7.8 billion, and accumulated assets of US$114.8 billion.
Being stronger and bigger is the dream of many Chinese car companies. In the face of fierce market competition, how will Chinese auto companies achieve a balance between strong and large? Great Wall Motor and SAIC-GM-Wuling chose to break through the growing ceiling.
Great Wall Motors Ranks Up 117 In the six Chinese automakers that have been shortlisted, Great Wall Motor attracts attention. Only two Chinese private auto companies were shortlisted, and Great Wall Motor was the fastest-growing ranking.
Great Wall Motor ranked 840, up 117 from last year. 2013 Great Wall Motor's sales revenue was 8.9 billion US dollars, with a profit of 1.3 billion US dollars and assets of 8.7 billion US dollars.
Great Wall Motor has increased its growth rate thanks to the SUV market. In 2013, after Great Wall Motors made Haval (SUV) an independent brand, the annual sales volume of Great Wall Motor jumped to 770,600 units, and the gross profit margin increased to 28.61%. The Great Wall Run also benefited from its strategy of focusing on development. At the 2013 Guangzhou Auto Show and the 2014 Beijing Auto Show, Great Wall Motor focused on the Haval brand. Take the Beijing Auto Show as an example. Great Wall Motor's participating models are Haval SUVs, such as the concept car HAVAL COUPE, the dynamic look of the COUPEC, the high-end luxury SUV Haval H9, the new generation urban SUV Haval H2 and the Haval H8, Haval H6 upgraded version, Haval H6 sports version, H8 style Haval Dakar racing.
However, after rapid growth, Great Wall Motors hit the ceiling. On May 8, Great Wall Motor announced that the high-end SUV model Haval H8 will continue to rectify and will not be listed before it reaches the high-end grade. This is the second time that Great Wall Motor has postponed the listing process of Haval H8. The Haval H8 is a masterpiece of the Great Wall Motor upgrade. For this reason, the Great Wall Motor H8 abandoned the previous procurement chain, equipped with a 2.0T turbocharged in-cylinder direct fuel injection engine and advanced components such as the Effort 6-speed manual transmission.
For the Great Wall Motor to postpone the Haval H8 listing twice, the industry has different attitudes. Proponents believe that this is a responsible performance for consumers, and opponents believe that their own brands lack the ability to enter the high-end market. All this is left to be verified by the Haval H8.
SAIC-GM-Wuling upgrades its dreams As the only Chinese automaker to be among the top 200, SAIC Group's performance is remarkable.
According to Forbes public data, in 2013, SAIC Group's sales revenue was 88.3 billion US dollars, its profit was 4 billion US dollars, and its assets were 56.4 billion US dollars. As a leading company in the Chinese automotive industry, SAIC Group's sales revenue and profit exceed the sum of the other five vehicle companies, and the sales profit rate is far higher than the industry average.
Continuous leadership requires forward-looking. After the continuous increase in sales volume, SAIC Group embarked on the road of adjusting structure and increasing efficiency. SAIC Group's major subsidiaries are targeting consumers to upgrade their needs and upgrade their products. The most notable of these is its subsidiary, SAIC-GM-Wuling. As the leading enterprise of cross-type passenger cars in China, SAIC-GM-Wuling is in a delicate situation. On the one hand, SAIC-GM-Wuling is one of the main forces of SAIC. In 2013, SAIC-GM-Wuling's sales exceeded 1.6 million units, accounting for 31% of SAIC's total sales volume. On the other hand, SAIC-GM-Wuling is at the low end of the value chain, and the micro-car market has a meager profit. If SAIC-GM-Wuling does not transform in time, It will drag down the profitability of SAIC. Therefore, the transformation of SAIC-GM-Wuling has become an important part of SAIC's strategic transformation.
Three years ago, SAIC-GM-Wuling released the passenger car brand Baojun, realizing the development strategy of “commercial and multi-purpose”. Later, with the rapid rise of Wuling Hongguang, SAIC-GM-Wuling accelerated its growth. Liang Xiaodong, the director of SAIC-GM-Wuling, said that the company is aiming at the upgrade needs of the base users. At present, SAIC-GM-Wuling has more than 4 million Wuling Light users, and about 60% of users have chosen a higher-level Wuling Rongguang. SAIC-GM-Wuling hopes to undertake the consumption upgrade of glory owners with products such as Wuling Hongguang and Baojun. Taking the Baojun 730 sedan as an example, it is a seven-seat family car specially built for the “Chinese family” based on the upgrade requirements of Wuling million users. According to the plan, Baojun 730 sedan and Wuling Hongguang formed a “high and low” product portfolio, and jointly grabbed the seven-seat family car market, and finally built a fully-covered seven-seat family car market layout.
SAIC-GM-Wuling executives said that the company has always insisted on “taking me as the mainstay, taking the road of independent research and development and developing its own brand”. After the listing of Baojun 610 and 730, it will continue to develop various household models such as Baojun SUV, and plans to further expand the product. The camp has successively launched a series of products based on the development of a new platform to realize the dream of accelerating into the family car market.

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