China

Great Wall Posts 19% Increase in Car Sales in 2015

Summary:

  • Great Wall Motor (601633.SS/2333.HK) has posted a 19.03% increase in car sales in 2015 to 869,600 units, reports Sohu.
  • The company has set a sales target of 950,000 cars in 2016.

Why It Matters:

  • Sales of SUVs, especially mid-range SUVs, have contributed the most to Great Wall Motor’s sales in 2015. Sales of the popular Model H6 SUV reached 373,229 in 2015, accounting for 43% of total units sold.
  • Great Wall Motor launched the high-end Models H8 and H9 SUVs in 2015 in order to enter the luxury SUV market, but the strategy has not been successful. The combined monthly sales of the H8 and H9 models is only around 1,000, and this niche market is still controlled by foreign manufacturers such as Volkswagen (ETR: VOW) and General Motors (GM).
  • Caitong Securities has estimated that Great Wall Motor will record a 22% increase in revenue in 2016 to RMB 76 billion, and it has given the company an Overweight rating.