Great Wall, China’s top SUV maker, to drive into foreign markets amid slump at home
- ‘Cannot be constrained to the domestic market’, says chairman
- Company aims to export 60,000 vehicles this year, a third more than 2018
Great Wall Motors, China’s top seller of sport-utility vehicles and pickup trucks, is betting on expansion in overseas markets to counter a slowdown in the domestic car market, Wei Jianjun, its chairman, said on Monday.
The company, which exports cars to countries such as South Africa, Chile and Russia, aims to export 60,000 units this year, a third more than last year’s actual exports of 45,129 units, Wei said in an interview.
“The downward trend in China’s car market is not something that can be resolved in a year or two,” he said. “We cannot be constrained to the domestic market.”
The company posted a 3.6 per cent increase in net profit for 2018 to 5.2 billion yuan (US$775 million) on Friday, lower than a consensus forecast of 5.3 billion yuan by analysts polled by Bloomberg. Shares in the company were down by 2.8 per cent in Hong Kong on Monday afternoon.
Wei, once the wealthiest automobiles tycoon in China, before being surpassed by Li Shufu of Geely Automobile in 2017, said the industry will face more consolidation and competition on quality, as China’s domestic market is unlikely to grow in size.
Carmakers rise after China vows to boost spending on autos as car sales fall for the first time in 27 years
Passenger car sales contracted in mainland China last year for the first time in two decades, and the slump is showing no signs of slowing down. Latest data indicates February sales plunged by 14 per cent, making it the eighth consecutive month of decline.