At the same time, Great Wall Motor released the Indian market strategy. According to the plan, Great Wall Motor will launch Haval SUV products and Great Wall EV brand in the Indian market in 20021year. The most important production link in the Great Wall India market strategy was finalized in the middle of June 5438+10.
Great Wall Motor acquired the General Motors Tarigon plant in India, becoming its second overseas and tenth full-process vehicle factory in the world.
At the same time, Great Wall Motor's R&D center in Bangalore, India, began to operate as early as 20 16, mainly engaged in the development of new energy and autonomous driving software.
There is no doubt that the foothold of the Great Wall globalization is India, which is an important supplement to Haval's "5-2- 1" released by Wei Jianjun, that is, it will achieve an annual sales volume of 2 million vehicles within five years and become the first brand blueprint for professional SUVs in the world.
But the question is, why India?
Mysterious country, foggy market
I don't know if you have any impression of a clip in the movie "Survival Desire":
When Xu zhēng bought the main character of medicine in India, a group of people came out of the smoke carrying the idol of Shiva, and everything in the picture was full of mysticism.
China people's perception of this Indian neighbor seems to be separated by a layer of fog. And many market phenomena here are also full of doubts. Take the automobile market as an example. After five years of sustained growth, the Indian automobile market ushered in a historic negative growth on 20 19:
In 20 19, the sales volume of passenger cars in India decreased by 4 1.4 million compared with that in 20 18, with a year-on-year decrease of 12.3%.
Rajan, president of the Indian Automobile Manufacturers Association? Wadhera said that due to continued weak demand and tightening of emission standards, the price of automobiles will generally increase by 8% to 1 0% from April 2020, which will curb the enthusiasm of Indians to buy automobiles. Indians generally believe that this is an indicator of rural economic health. In 20 19, the sales of two-wheeled vehicles in India decreased 14%, and the sales of barometer trucks for overall economic growth decreased 15%. Since the Indian Automobile Manufacturers Association 1997 began to record, the decline was the most serious.
On the other hand, it is an indisputable fact that India's economic growth has slowed down. The growth rate of the current fiscal year is only 5%, which is the lowest level in history since 1 1. The automobile manufacturing industry, which accounts for nearly half of India's manufacturing output value, has also been hit unprecedentedly.
In addition, the composition of the Indian passenger car market is also very interesting.
According to the law, the consumption tax of cars below 4m in India is 12.5%, and the consumption tax of cars above 4m is 24%. Plus the basic import tariff of 60% to 65,438+000%, cars are rampant on Indian land. Foreign investors enjoy national treatment, and the shareholding ratio can reach 100%. Some Indian states will also provide incentives for the local automobile industry and enjoy tax relief.
Therefore, Suzuki happens to be the best-selling car in the Indian market at present, and he has made great achievements in the small car market. Last year, in India's passenger car sales rankings, the first six models were all produced by Suzuki's joint venture in India, Maruti Suzuki. In terms of market share, Maruti Suzuki occupies half of the country, reaching a horrible 48.24%.
Maruti Suzuki's popularity in the Indian market is not only because of the encouragement of policies, but also because of the choice of consumers. In India, where the weather conditions are changeable and the road environment is harsh, users attach great importance to the convenience of vehicle maintenance when it breaks down. Suzuki, who is good at this, has naturally benefited a lot.
Besides, according to JD? According to Power's report, Indian consumers mainly consider three factors when buying cars-brand credibility, product quality and product appearance. Maruti Suzuki occupies the first place in the influence list of Indian automobile brands all the year round, which shows the degree of Suzuki's popularity in the local area.
Different markets need different circuit breakers.
After the above analysis, perhaps many people will have a feeling-
The Indian market is really monolithic.
That being the case, why did the Great Wall choose to "climb the Tiger Mountain"?
The answer is also simple. Although the current Indian automobile market seems to be a stable monopoly, it is also full of opportunities to break it.
First of all, the Indian auto market has great potential and needs to be released.
According to last year's statistics, the number of cars per thousand people in India is only 29, far below the world average of 180. At the same time, young people under the age of 25 in India account for half of India's population, and the number of minors alone is as high as 500 million. The market power that this market can release in the future is hard for every international automobile brand to ignore.
Secondly, India's auto market has developed credit consumption.
In India, the car loan ratio can be as high as 100%, and many models can make a down payment of 0. Moreover, the bank's loan review speed is fast, and the loan period is 1-7 years, so the choice is relatively flexible.
The Indian government under Prime Minister Modi is vigorously promoting the process of industrialization, urbanization and modernization. At present, India's urban residents have exceeded 30% of the total population. Many consumers of three-wheeled and two-wheeled vehicles turned to minibuses, and many new middle-class families born in the process of urbanization entered the era of automobile consumption.
As mentioned above, last year, the Indian auto market experienced negative growth, and the fundamental reason was IL &；; The massive default of FS on 20 18 and 10 shocked the Indian financial market and prompted the Indian government to take over the company directly. After a short-term market panic, the Indian auto market has recovered its long-term favorable situation. According to the sales data of this year 1 month, Suzuki has resumed its growth rate in Maruti.
Not only the Great Wall, but also Lexus, Mercedes-Benz, BMW and Volkswagen have all settled in India in recent years. It can be seen that many car brands have expressed their approval for this big cake in India in the future.
So what advantages does Great Wall Motor have among these new powerful competitors?
The most important thing is timing.
It can be said that now is the best time for Great Wall Motor to enter the Indian market.
One of the reasons for the negative growth of the Indian auto market is Modi's radical environmental protection policy. Since April this year, India has implemented BM6 emission regulations nationwide ahead of schedule, which is as strict as Euro 6, and has been in line with world standards in environmental protection.
Great Wall EV brought by Great Wall Motor this time is actually an independent new energy brand launched by Great Wall Motor for the Indian market, mainly EV? R 1 and great wall EV? IQ two new energy products, namely domestic Euler models. In the future, the Great Wall EV brand will launch different products for travel and private cars. According to Twitter released by Great Wall India, Euler R 1, Haval H9, Haval H2 and other models will be introduced to the Indian market first.
For electric vehicles, the Indian government is also introducing development stimulus policies. While reducing tariffs on electric vehicle parts, it is announced that it will invest 654.38 billion rupees in subsidies before March 2022. In terms of infrastructure, it is planned to build 2,636 electric vehicle charging stations in 62 cities across the country.
It can be said that the environmental protection policy paved the way for the development of Great Wall EV in India. As for the Haval brand entering India this time, I want to say that this is simply a tailor-made strategy for the future Indian market.
Explore the historical timeline and you will find interesting footnotes. Suzuki once made a brief success in China automobile market. At its peak, it sold more than 300,000 cars in China. However, it was followed by a continuous decline in sales volume and eventually withdrew from the China market.
Hiroshi Murayama, a member of the editorial department of Nihon Keizai Shimbun, summed up the reason why Suzuki lost to China and thought it was caught in a "strategic trap of emerging countries". In exploring emerging markets, international manufacturers usually adopt two different strategies: one is to enter the target market layout in advance, and the other is to enter strongly after the target market matures. In the development of emerging markets, Suzuki adheres to the first-Mover strategy of "preemptive strike is the strongest" and carries out brand penetration ahead of time. Only when the economy of emerging countries takes off can it quickly achieve profitability. However, Suzuki can't grow with the consumers in the target market, so it can't continue to succeed after its early success.
Suzuki can't stay with Indian consumers for a long time, which is not alarmist. Taking China's economic development as a reference, in 2005, China's per capita GDP was close to US$ 2,000. Also in this year, the number of civil cars in China soared150,000, and the automobile market entered the fast lane of development in an instant.
Today, India's GDP per capita and the number of passenger cars are infinitely close to the level of China in 2005. However, 2005 is still a very important time for Great Wall Motor, and in this year, the Haval car system was officially unveiled.
With the development of economy and urbanization to a certain extent, consumers' demand for automobiles has changed substantially. At this time, the car is not only a mobile means of transportation in the city, but also the most powerful multi-functional travel mode for individuals in the process of urbanization. It must be able to have sufficient load capacity; Must have excellent quality; Must have the ability to be compatible with various road conditions; But also must have a certain degree of luxury. These characteristics of Harvard are suitable not only for China in 2005, but also for India today.
And Haval's reputation for quality is also the foundation that can support Haval H6 to become the leader in SUV sales in China market. The same characteristics still apply to Indian consumers.
It can be predicted that Great Wall Motor will have the opportunity to incite the basic market of Indian cars through the quality of Haval and the electrification of Great Wall EV.
Do you think this is all the cards of Great Wall Motor in the Indian market? That is wrong.
In the future, the Tarigon plant in India will become the second overseas and the tenth full-process vehicle plant in the world after the Tula plant in Russia. By then, Great Wall Motor will use the Indian factory to radiate the Middle East and African markets, which will become the outpost of Great Wall Motor for emerging markets.
In addition, in 20 16, Bangalore R&D center invested 280 million rupees in the Indian market, mainly engaged in the development of new energy and autonomous driving software. At present, the number of R&D personnel in India has reached 150. Bangalore, as the Silicon Valley of India, is rich in software development talent resources and technical reserves, which will be transformed into the source power for the development of the automatic driving system of Great Wall Motor. In the future, we will rely on the global R&D system and adopt the R&D model of Sino-US-India cooperation.
In addition, Great Wall Motor said that it will actively carry out site selection planning and invest in automobile battery production in India. In the next five years, Great Wall Motor will invest about US$ 5 billion to continue to build a global R&D system and form a leading edge in the fields of active and passive safety technology, intelligent interconnection and autonomous driving.
abstract
It can be said that Great Wall Motor's trip to India is a very important step in the future-oriented globalization strategy. If successful, it will become a springboard to more emerging automobile markets.
It can be predicted that Great Wall Motor, which occupies the best policy tilt time and holds the products most suitable for the local market, will have considerable initiative in the future global automobile industry competition.
This article comes from car home, the author of the car manufacturer, and does not represent car home's position.