What did Great Wall Motor see in India through the acquisition of GM's factory?

The Indian market seems to have become a hot potato overnight.

At the 15th Delhi International Auto Show, which opened yesterday, Great Wall Motor made a high-profile appearance in the form of an independent exhibition hall with various models of Haval and Great Wall EV, and announced its goal of entering the Indian market on the spot.

Legend: I have to say that the momentum of the independent pavilion is really different.

Just two days ago, Lexus announced its listing through the ES model assembled and produced by Toyota in Bangalore, India. You know, the China market has always been very critical of Lexus's domestic production. Lexus has also sold well in China in the past two years (with a price increase), but the positioning of domestic production has been ambiguous, so many people didn't expect it to go to India for production first.

If we push the time forward, it is the first half of last year that SAIC announced that the third overseas factory was put into production in India. In the early stage, the MG brand was mainly introduced to the Indian market. In the first half of the year, the sales volume exceeded 6.5438+0 million, which won a good start.

It is said that Haima Automobile also saw this successful model of SAIC, so in June last year, it was reported that Haima Automobile also intended to enter India. At the beginning of this year, a foreign media quoted a spokesman for Haima Automobile as saying: "Haima Automobile is ready to enter the Indian automobile industry." However, at the Delhi International Auto Show in India on the 5th, hippocampus did not seem to participate.

Judging from the popularity of cars among Indians in recent years, they are basically inclined to mini-cars and small cars. Cars like Maruti Alto (that is, Suzuki Alto) can occupy the first place in the annual sales list for many years. The Indian market can be said to be dominated by Suzuki and Hyundai (the modern mini-car i 10 is also a best-selling model) and the local enterprise Tata. More than 80% of the market share is divided by these three companies, followed by Toyota and Honda. Renault and Nissan can have a piece of the action, while Ford and GM can only have a sip of soup.

No, GM can't even drink soup now. The springboard for Great Wall Motor to enter the Indian market is the acquisition of GM's factory in Taligang, India. GM can basically announce its withdrawal from the Indian market.

Wechat cars and small cars, such as Chery's QQ, BYD's F0 and Geely Panda, were also popular in China for some time. I believe many people still have a deep impression on these cars. However, with the rapid development of our country's economy and the continuous upgrading of automobile consumption, these cars, which are actually very suitable for transportation, have been ignored and have been basically eliminated now.

The Indian market at this time is actually very similar to what we looked like 20 years ago. With the development of India's economy, the upgrading of automobile consumption is bound to advance. Now, many foreign brands have developed or invested in new compact cars for the Indian market. Of course, this also brings opportunities to our China automobile brands.

In the past few years, the Indian government has indicated that it wants to turn India into a global manufacturing and exporting power similar to China. In 20 16, Prime Minister Rendra Modi also publicly released his flagship policy of "Made in India", including giving strong support in taxation, safety and convenience of business environment, etc. Great Wall also said that the internationalization strategies such as "Made in India", "Digital India" and "Clean Energy India" strongly advocated by the Indian government are highly compatible with the sustainable development goals of Great Wall Motor.

Therefore, Great Wall Motor announced to enter the Indian market at this time, which can occupy a strategic advantage.

According to the plan announced by Great Wall, the Indian market will become an important strategic market for the evolution and promotion of Great Wall Motor's strategic layout. In the future, the R&D center in Bangalore, India will be fully upgraded to tailor smart security products for Indian consumers and continue to increase investment in localized R&D..

In the future, after the complete acquisition of Taligang plant in India, Great Wall Motor will be the 10th full-process vehicle factory in the world and the second overseas, further improving the global production pattern of Great Wall Motor. According to official information, the factory will be mainly used for the localized production of SUV products and EV products of Great Wall Motor, and will provide more than 3,000 local jobs.

Besides R&D and vehicle production, Great Wall Holding Group will also invest in the production of automobile batteries in India to build a complete supply chain system.

Legend: Great Wall Motor will establish a full-service ecological chain covering research, production, supply and sales in the Indian market.

It can be seen that Great Wall Motor is really interested in the Indian market, not only as a production base or sales market, but as a base to realize Indian R&D, Indian production and global sales in India.

Of course, compared with the China market, the Indian market is still in the stage of development and cultivation. In addition, its own economic development in recent years is not as stable as that of China, and there are obvious market fluctuations. For example, in 20 18, the sales volume of commercial vehicles and passenger cars in India increased by 8.3% year-on-year to 3.99 million, but in 20 19, due to the slowdown of its domestic economy, the overall sales volume dropped by 4.2% to 3.82 million, among which the sales volume of passenger cars dropped significantly. According to the statistics given by the Indian Automobile Manufacturers Association (SIAM), in 20 19, the sales volume of passenger cars in India dropped from 2.24 million in 20 18 to 2010000, and the decline rate of 19% also set a historical record.

Therefore, if we only regard the Indian market as a new sales market, then the potential business risks can not be ignored (80% of the three major competitors are really difficult to deal with). Great Wall's strategic ambition for the Indian market can avoid a considerable part of market risks for it. After all, in Wei Jianjun's planning map, "global market" is his pattern, and India's strategic position is even much higher than the factories laid out in Russia last year.

Author: Visky

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