Great Wall Motors has unveiled its 2024 performance report, and the results are both surprising and enlightening.

Despite missing sales targets, the company's profits skyrocketed by nearly 80%, reaching an impressive 12.4 billion yuan.

This achievement has sparked envy among peers in the automotive industry.

Great Wall's approach has emerged as a benchmark for "anti-competition," sounding the alarm that the era of blind sales pursuits must come to an end.

Great Wall Motors in 2024: Sales Lag, Profits Lead

According to Great Wall's latest financial forecast, it is projected to record a net profit attributable to shareholders ranging from 12.4 billion to 13 billion yuan in 2024, marking an increase of 76.60% to 85.14% year-on-year.

Non-deductible net profit is also anticipated to be between 9.4 billion and 10 billion yuan, representing a year-on-year growth of 94.47% to 106.88%.

Such remarkable performance growth stands out in the current automotive market landscape.

However, sales figures have been less than stellar, with a total of 1.23 million units sold in 2024, placing Great Wall lower on the sales charts among Chinese automaker groups.

Upon closer inspection, though, it becomes evident that Great Wall's profit per vehicle surpasses 10,000 yuan, an impressive feat in the industry.

Premiumization and Overseas Expansion: Great Wall's Winning Strategies

Great Wall Motors' significant profit increase is primarily attributed to two key strategies: premiumization and overseas expansion.

In terms of premiumization, the Tank and Haval brands have shone brightly. Sales of the Tank brand surged by 42% year-on-year in 2024, while the Haval brand grew by 31.55%.

The high-end positioning of these brands has significantly contributed to Great Wall's profit margins.

The overseas market has also been a major highlight for Great Wall.

In 2024, Great Wall Motors' exports increased by 43.39%, providing a robust boost to profit growth.

The company has established a presence in over 170 countries and regions worldwide, with production bases in Russia, Thailand, Brazil, and other locations.

Uneven Performance Among Sub-Brands: Ora and Pickups Face Challenges

Despite Great Wall's overall strong performance, its sub-brands have experienced uneven development.

Sales of the Ora brand declined by 41.69%, while sales of Great Wall pickups fell by 12.47%.

This indicates that Great Wall's internal brand structure still requires further refinement.

In response, Great Wall has adopted a strategic approach of prioritizing key areas.

For instance, it has reduced the number of Ora brand stores and focused resources on high-profit or high-margin products.

Simultaneously, Great Wall has reformed its internal marketing system by merging the Haval and Ora brands, along with the pickup truck business, to enhance overall efficiency.

Great Wall's "Anti-Competition" Approach: Emphasizing Quality Over Quantity

Amidst the fierce "competition" in the current automotive market, Great Wall has charted a different course.

Rather than engaging in domestic price wars, the company has focused on product enhancements and overseas market expansion.

Wei Jianjun, Chairman of Great Wall, has clearly stated that the company aims to bolster market competitiveness through high quality and technological innovation.

Great Wall continues to invest heavily in intelligent driving and new energy technologies.

In 2023, R&D investment amounted to 11.034 billion yuan, accounting for 6.37% of revenue.

The company has launched the Lanshan model equipped with the third-generation intelligent cockpit system, Coffee OS 3, and collaborated with Baidu to develop an L4-level autonomous parking system.

Great Wall's actions serve as a lesson for the entire automotive industry.

While many are fixated on sales-driven strategies, Great Wall has opted for a path of "profit supremacy" and achieved remarkable success.

This may signal a shift in competition focus within the automotive market, moving away from sheer sales volume and towards high-quality development.

For the industry at large, Great Wall's experience is a valuable lesson worth contemplating.