Produced by Radar Finance | Text by Mo Enmeng | Edited by Shen Hai

"What value is there in just ranking sales figures?" Recently, in a conversation with media leaders, Wei Jianjun, known as the 'Car God of Baoding', directly criticized the increasingly prevalent ranking phenomenon in the auto industry.

Wei Jianjun believes that a comprehensive and multi-dimensional ranking system should be established in a unified and fair environment. Key indicators such as quality, complaint volume, brand reputation among consumers, and corporate likability should also be considered in the rankings.

In fact, with the continuous development of social media, competition among automakers has gradually extended to the realm of public opinion. Faced with irregularities in the industry, many automakers, including Great Wall Motors and BYD, have stepped up efforts to combat online black PR.

Wei Jianjun believes that there are currently some automakers engaging in unfair competition and falsification, but he welcomes friendly and healthy competition. Furthermore, he suggested that if necessary, an audit of the entire auto industry could be conducted, starting with Great Wall Motors, and even offered to cover all the costs.

In the first half of this year, Great Wall Motors expects a significant increase in net profit, primarily due to the company's pursuit of high-quality development, growth in overseas sales, and optimization of product mix. However, beneath this glossy performance lies hidden concerns.

Radar Finance's statistics reveal that Great Wall Motors' sales have declined year-on-year for three consecutive months since May this year. Specifically, the Tank brand has been a bright spot in Great Wall Motors' recent sales, but new energy vehicles still account for a relatively small proportion of the company's total sales.

Wei Jianjun disagrees with the idea that sales figures are the only measure of success and suggests conducting comprehensive rankings

In the field of new energy vehicles, sales figures are not only a quantitative indicator of brand influence but also a direct reflection of the market's enthusiastic response. As a barometer of market feedback, they accurately reflect consumers' deep understanding, high preference, and strong willingness to purchase a particular brand and its products. Recently, discussions about sales figures in the auto industry have intensified.

"What value is there in just ranking sales figures?" Wei Jianjun, Chairman of Great Wall Motors, asked sharply in a recent conversation with Deng Qingxu, CEO of Sina Finance.

In Wei Jianjun's view, the auto industry needs rankings under a consistent environment. In addition to sales, quality, complaint volume, brand reputation among consumers, and corporate likability can all be ranked. Furthermore, automakers can also rank based on multiple dimensions such as profit and tax contributions.

Wei Jianjun's remarks inevitably evoke associations with the recent controversy surrounding NIO's weekly sales ranking, which drew criticism from several influential figures in the auto industry.

Radar Finance understands that most players in the auto industry typically disclose their sales figures on a monthly or quarterly basis. However, since last year, NIO has been releasing weekly sales rankings for various new energy vehicle brands.

However, NIO's weekly sales data disclosure has angered many of its peers. Qin Lihong, Co-founder and President of NIO, sharply stated, "I hope that when other companies release weekly rankings, they will not include NIO."

Qin Lihong emphasized that NIO does not make sales forecasts or release unaudited weekly sales data. Fewer than ten people within the company have access to weekly sales figures, so the data circulating in the market lacks rigor. Furthermore, NIO has never authorized any third-party organization to release weekly sales rankings in its name.

It is worth noting that NIO's weekly sales rankings have been suspended for some time due to various reasons. Some people believe that NIO's actions suggest a reluctance to release poor sales figures. Although Li Bin, NIO's founder, did not name any specific company, his remark that "if we were number one, we would never release weekly rankings" implicitly criticized NIO's practice of publishing weekly sales rankings.

After two senior executives from NIO entered the fray, Ma Lin, NIO's Assistant Vice President of Branding and Communication, called on Li Xiang, NIO's founder, to "stop it already" and emphasized on Weibo that "the top management has set the tone: no low-level competition. Competing in weekly rankings is a form of low-level competition." Ma Lin's statement was echoed by Yang Xueliang, Senior Vice President of Geely Holding Group, who also expressed opposition to weekly rankings.

In addition, XPeng, the remaining member of the "WEI-XIAO-LI" trio, has also criticized NIO's weekly sales rankings. Following previous doubts expressed by Huang Honglin, General Manager of XPeng's Product Marketing, about the accuracy of NIO's weekly sales data, He Xiaopeng, Chairman of XPeng, recently spoke passionately on the matter.

At XPeng's recent AI Autonomous Driving Technology Conference, He Xiaopeng bluntly stated that while the US industry focuses on improving end-to-end autonomous driving solutions, domestic competitors are busy creating sales rankings. "They only care about making money rather than technological innovation and breakthroughs. This is not how technology competition should look," he said.

Faced with criticism from peers, Li Xiang finally responded. Subsequently, Li Xiang posted a meme depicting the story of "plugging one's ears while stealing a bell" on his WeChat Moments, seemingly addressing his critics.

With black PR scandals frequently occurring in the auto industry, Wei Jianjun offers to pay for a full-industry audit

Not long ago, several influential figures in the auto industry, including Wei Jianjun, Li Xiang, Li Bin, and He Xiaopeng, attended Xiaomi's car launch event to support Lei Jun's latest venture, which he has staked his entire reputation on. For a moment, the auto industry seemed to exude a harmonious atmosphere.

However, beneath the harmonious surface of conversations among automakers' executives lies a hidden current of intense competition within the industry. When discussing the recent trend of automakers' executives visiting each other's facilities, Luo Yonghao offered a scathing commentary during a live broadcast. In Luo's view, it is acceptable for auto executives to interact with the audience and media, but it is strange for them to visit each other's facilities. "It's fake and pretentious. I don't know what kind of skill they're trying to hone," he said.

In fact, with the rapid development of social media and information technology, the realm of public opinion has become an important stage for competition among automakers. Automakers must not only compete in terms of products, technology, service, and price but also strive for a voice in the realm of public opinion to shape their brand image and guide consumer perceptions.

To further combat online black PR, BYD initiated the "Clear Action" campaign in December 2021, offering rewards ranging from 50,000 to 1 million yuan. In June 2022, BYD's Online Reporting Center announced an adjustment to the reward structure, increasing the maximum reward to 5 million yuan for a period of one year.

Last March, Great Wall Motors announced a reward of up to 10 million yuan to combat online trolls. In July of the same year, Great Wall Motors announced the first batch of rewards under this initiative. According to Great Wall Motors, as of July 14 of last year, it had received nearly a thousand tips from netizens, and some malicious activities by online trolls had entered the judicial process.

In March of this year, XPeng officially launched its first pure electric MPV, the XPeng MEGA. However, shortly after its launch, the XPeng MEGA was targeted in a malicious photo manipulation incident. Subsequently, Li Xiang, XPeng's CEO, stated that the company was taking legal action against the organized criminal activities involved in the incident.

In June, Li Yunfei, General Manager of BYD's Brand and Public Relations Department, also posted on social media that a rival automaker had used black PR tactics to discredit and slander BYD's products and brand. BYD offered rewards ranging from 200,000 to 5 million yuan for valid tips and evidence. Additionally, BYD stressed that it would strictly keep the providers' personal information confidential.

In the same month, GAC Aion officially established its Online Reporting Center, which will accept complaints and collect evidence of illegal activities such as insults, slanders, and rumors targeting GAC Aion. The center aims to severely crack down on online infringement.

During the conversation, in addition to being asked about whether the entire industry feels anxious about rankings and data, Wei Jianjun also shared his views on other irregularities within the industry. Wei Jianjun admitted that the automotive industry has become somewhat chaotic, stating, "We must avoid malicious, fraudulent, deceptive practices, and other unfair means of competition that rely on falsification, non-compliance, or shortcuts."

Wei Jianjun further stated that to maintain economic order, we must confront and combat these unfair practices. "If we keep cheating, who would want to play with us? I believe this issue is not just about our automotive industry but also about China's international image," he said.

Wei Jianjun also proposed that if the government decides to conduct an audit of the automotive industry, Great Wall Motors should be the first to undergo it. "We are open and transparent. Let's audit every company to see who has problems. I've told them, go ahead and audit us. Great Wall Motors will cover the audit costs. Maintaining the (industry's) integrity is a matter for China, not just the industry," he said.

When discussing his frequent interactions with Lei Jun and Xiaomi Automobile, Wei Jianjun expressed his willingness to participate in friendly, mutual learning, and healthy competition. He revealed that Lei Jun has visited him twice in the past three years for candid exchanges and learning opportunities. Wei Jianjun also noted that he has learned from Lei Jun, adding, "There's no shame in learning."

Despite some chaos within the automotive industry, Wei Jianjun remains confident in the current era of automobiles, believing that it is the best time, especially given the country's strategic focus on new energy vehicles.

However, Wei Jianjun is also aware that while China's automotive industry has achieved remarkable success, it has also become somewhat complacent. For example, while foreign automakers are capable of developing autonomous driving and smart cockpits, the demand for digitization among foreign consumers is not as strong as it is in China. Therefore, domestic automakers must accelerate research and development to seize opportunities, but they still lag behind foreign automakers in terms of R&D management processes, tools and methods, product validation, quality management, and supplier management.

Net profit 'soars' in the first half, while sales decline for three consecutive months

Before entering the automotive industry, Wei Jianjun had experience in other sectors. Starting at age 22, he worked in a pump factory for four years. It is reported that the pump factory was a collective enterprise, and due to Wei Jianjun's excellent performance, the township government decided to assign him to work in the automotive industry.

Subsequently, Wei Jianjun was appointed as the head of the automotive factory, and he was given a special appointment letter with the title of General Manager. Although Wei Jianjun admitted that he had always dreamed of working in the automotive industry, the factory faced significant challenges at the time. "It was a small place with only 60 people. Back then, we were modifying existing vehicles, which were called passenger-cargo vehicles or pickups," he recalled. Compared to today's advanced stamping processes in the automotive industry, the work was manual and labor-intensive.

Thanks to the wave of reform and opening-up and rapid economic growth, cars were not difficult to sell during that time. Gradually, Wei Jianjun led the factory from simple modifications to the manufacturing of new vehicles. Wei Jianjun, who entered the automotive industry by chance, believes that he is fortunate to have caught a good era and been assigned to a fulfilling career, which he deeply loves.

Over the years, under Wei Jianjun's outstanding leadership, Great Wall Motors has transformed into a globally renowned smart technology company with a wide range of businesses, including the design, research and development, production, sales, and service of automobiles and auto parts. Its portfolio includes renowned brands such as Haval, WEY, Ora, Tank, and Great Wall Pickup, making it a shining example of China's automotive industry.

According to Tianyancha, Wei Jianjun is associated with 49 enterprises and serves as the legal representative of 30 companies.

On July 10, Great Wall Motors disclosed its first-half performance forecast. The company expects to achieve a net profit attributable to shareholders of the parent company ranging from 6.5 billion to 7.3 billion yuan for the first half of the year.

In the same period last year, Great Wall Motors' net profit attributable to shareholders of the parent company was 1.361 billion yuan. In comparison, the company expects a year-on-year increase of 377.49% to 436.26% in this profit indicator for the first half of this year.

Furthermore, Great Wall Motors anticipates a net profit attributable to shareholders of the parent company, excluding non-recurring gains and losses, to range from 5 billion to 6 billion yuan, representing a year-on-year increase of 567.13% to 700.56% compared to the same period last year.

Even compared to the full year of 2023, Great Wall Motors' profitability in the first half of this year is impressive. In 2023, the company's net profit and net profit excluding non-recurring gains and losses attributable to shareholders of the parent company were 7.022 billion yuan and 4.834 billion yuan, respectively. In other words, Great Wall Motors' net profit in just six months of this year has approached or even surpassed its full-year 2023 level, while its net profit excluding non-recurring gains and losses has significantly exceeded last year's total.

Explaining this remarkable financial performance, Great Wall Motors attributed it primarily to the company's commitment to high-quality development, adherence to quality standards, pursuit of exceptional product experiences, growth in overseas sales, and further optimization of its domestic product mix, all of which contributed to a significant year-on-year increase in net profit attributable to shareholders of the parent company. The primary reason for the increase in non-operating gains and losses was the year-on-year growth in government subsidies received by the company.

According to Great Wall Motors' latest production and sales bulletin, the company's cumulative sales for the first seven months of this year reached 650,954 units, representing a 3.6% increase from the same period last year.

Among them, the Haval brand serves as the backbone of Great Wall Motors' sales, accounting for 54.18% of the company's total sales with 352,682 units sold.

Next come the Tank brand and Great Wall Pickup, with sales of 134,720 units and 103,944 units, respectively, accounting for 20.7% and 15.97% of the company's total sales.

Additionally, the Ora brand, WEY brand, and others recorded sales of 36,529 units, 22,632 units, and 447 units, respectively, contributing 5.61%, 3.48%, and 0.07% to the company's total sales. None of these brands exceeded a 6% contribution to total sales.

However, a comparison with sales from the same period last year reveals that the increase in Great Wall Motors' sales for the first seven months of this year was not driven by its sales flagship, the Haval brand, but rather by the Tank brand. During this period, Haval brand sales decreased by 0.82% year-on-year, while Tank brand sales increased by 87.59% year-on-year.

Furthermore, brands including WEY, Great Wall Pickup, and Ora hindered Great Wall Motors' sales growth to varying degrees. Sales of these brands decreased by 8.75%, 12.24%, and 36.38%, respectively, year-on-year for the first seven months of the year.

Despite the 'soaring' net profit indicator in the first half of the year, Great Wall Motors' overall sales performance in July declined. In July this year, the company's total sales decreased by 16.32% year-on-year to 91,285 units.

Specifically, sales of multiple Great Wall Motors brands declined in July, except for the Tank brand and others. The Tank brand recorded an increase of 38.49% year-on-year in July sales, reaching 18,682 units, while sales of the Haval brand, WEY brand, Great Wall Pickup, and Ora brand decreased by 15.92%, 58.43%, 24.07%, and 52.75%, respectively, year-on-year for the month.

Radar Finance further sorted out and found that Great Wall Motor's monthly sales have actually declined year-on-year since May this year. By July this year, Great Wall Motor has failed to reverse the decline in sales for three consecutive months. During this period, the monthly sales of Great Wall Motor fell by 9.51%, 6.55%, and 16.32%, respectively.

By market segment, in July this year, Great Wall Motor sold 38,185 new vehicles overseas, accounting for 41.83% of total sales. In the first seven months of the year, Great Wall Motor's overseas cumulative sales reached 239,685 units, accounting for 36.82% of total sales.

From a model perspective, in July this year, Great Wall Motor sold 24,145 new energy vehicles, accounting for 26.45% of total sales. In the first seven months of the year, Great Wall Motor sold a cumulative total of 156,519 new energy vehicles, accounting for 24.04% of total sales. It can be seen from the aforementioned data that the proportion of new energy vehicles in Great Wall Motor's total sales is not very high.

In response to outside comments that Great Wall Motor's electric vehicle sales are relatively limited and its development speed seems to be lagging, Wei Jianjun believes that these views are misunderstood. On the one hand, Wei Jianjun emphasizes that Great Wall Motor does not attach too much importance to subsidies and is wary of strategic deviations and operational decision-making errors that may result from excessive reliance on subsidies.

Wei Jianjun also said that although Great Wall Motor did not quickly transition to electric vehicles from traditional vehicles, it has invested in batteries, motors, and electronic controls. Wei Jianjun also confidently stated that Great Wall Motor's technical capabilities in some key areas, especially intelligent driving technology, are already leading among domestic brands.

At the same time, Wei Jianjun demonstrates a strong bottom-line mindset and compliance awareness. He emphasizes that Great Wall Motor's development strategy focuses on the long term, rejects short-sighted behavior, adheres to industry norms, and will never cross any high-pressure lines of illegal or Violation of regulations behavior.

In Wei Jianjun's view, the threshold for pure electric vehicles is not high, and the competition is particularly fierce. According to his rough estimate, the entire industry lost up to 160 billion yuan last year. Based on a deep understanding of the current state of the industry, Wei Jianjun believes that enterprises lacking self-sustaining capabilities and failing to achieve profitability will find it difficult to maintain a long-term foothold in the fiercely competitive market. Therefore, Great Wall Motor adheres to a very important principle, which is to achieve "quality market share" and avoid engaging in unprofitable endeavors as much as possible.

Amidst the rapidly changing automotive industry, what kind of development will Great Wall Motor face next? Radar Finance will continue to pay close attention.