Manufacturing News

Great Wall sales stall on weak Haval crossover, SUV demand

Great Wall Motor Co., China's largest maker of light trucks, reported a sales decline of 0.2 percent year on year to 168,376 vehicles in the first two months.

The company’s sales were dragged down by Haval crossovers and SUVs, which slumped 19 percent from a year earlier to 120,628 in January and February.

Combined deliveries of the VV5 and VV7 compact crossovers, the first products hitting the domestic market in the first half of 2016 under Great Wall’s new Wey premium brand, reached 28,818.

Thanks to Wey’s volume, Great Wall’s sales of crossovers and SUVs edged up 0.7 percent year on year to 149,446.

Meanwhile, the company’s pickup deliveries dropped 3.5 percent to 18,307 vehicles.

Great Wall, which stopped developing sedans several years ago, sells only one sedan model -- the Great Wall-badged C30 compact. Sales of the C30 contracted 53 percent to 623 vehicles in the first two months.

Industry analysts prefer to aggregate China sales for the first two months to compensate for the Lunar New Year, which is celebrated on different dates from year to year. This year, the weeklong holiday was observed from Feb. 15-21. Last year, it ran from Jan. 27-Feb. 2.

The holiday resulted in a sharp sales fall for Great Wall in February. After jumping 21 percent to 110,040 from a year earlier in January, the company’s deliveries slumped 25 percent to 58,336 last month.

In February, Great Wall signed a letter of intent with BMW AG establish a joint venture in China to produce Mini electric vehicles.

Great Wall, headquartered in the north China city of Baoding, is listed in Shanghai and Hong Kong.

In 2017, the company’s sales slid 0.4 percent to 1.07 million vehicles as deliveries of Haval crossovers and SUVs declined and eclipsed sales gains for Wey and for pickups.

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