Manufacturing News

Great Wall Motor expands in Europe

Great Wall Motor Co., which is already selling Hover SUVs in Italy, aims to expand into other west European markets in two to three years, a senior executive said on May 20.

Great Wall's Hover X240 SUV got a four-star rating out of five in a recent crash test conducted by Australia safety authority ANCAP, the highest global recognition for a China-made model.

"We already have a dealer in Italy. We are in contact with potential partners in other key European countries, such as Germany, France, Britain and Spain," the executive told Reuters. "It takes time for us to break into these markets, possibly two to three years."

Great Wall plans to have separate dealers in each of these countries, but will have one dealer each for northern, central and eastern Europe, said the executive, who asked not to be identified due to the sensitive nature of the matter.

In Australia, a market it broke into in June 2009, Great Wall aims to more than double its sales to 7,000 to 8,000 units this year. Sales in Italy are estimated to jump to roughly 6,000 units from 2,700 units a year earlier, the executive added.

Great Wall sells vehicles to more than 100 countries and regions now. Foreign sales of 60,000 units are projected for this year, up from 350,000 units in 2009, according to company data.

Great Wall, one of the country's biggest SUV and pickup makers, is among a growing group of ambitious Chinese automakers hoping to emulate the global success of Toyota Motor Corp., Honda Motor Co., Hyundai Motor Co., among others.

SAIC Motor Corp., China's biggest automaker, plans to start manufacturing its MG-series sedans at its UK plant and sell the sedans across the European Union at the end of this year. 

The parent of Geely Automobile Holdings, known as the maker of small, inexpensive vehicles, signed a definitive agreement in March buy Ford Motor Co.'s premium Volvo brand for $1.8 billion.

However, expansion abroad has not been smooth for China Inc.

Brilliance Auto, BMW AG's partner in China, has halted its car exports to Europe after its in-house designed BS4 and BS6 sedans met with a cool reception due largely to poor crash test results. 

Great Wall is opting for a gradual and steady expansion in mature markets while Volkswagen AG, General Motors Co. and the likes dominate. "We are doing one step at a time and make sure each step is solid and steady," the executive said.

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