One of my most recent findings in the Automotive industry was a Chinese based auto manufacturer. This was news to me because 1)I didn't know entirely that China exported their manufactured vehicles, I knew they manufactured cars but not to this extent and 2) this was the first I've heard of this manufacturer.
The manufacturer I'm referring to is Great Wall Motors, a Chinese based auto manufacturer that was formed originally in 1984 and has won some serious amounts of reputable automotive awards, including "Top 10 Asian Auto Manufacturers". You'd think with this type of creditability and just the length of which the company has existed I would know about the company, but chances are you may not be familiar with them and this could be the first time hearing about them, just as it was for me. The reasoning for this is the simple fact of them being non-existent in many of the world's developed markets (North America). Instead Great Wall Motors has focused an a gradual growth approach that consists of targeting and expanding in emerging and developed markets, which provides a reasonable explanation of why we have never heard of them, unless that is if you really, really are into car manufacturer news or you've traveled to some of the areas of the world where they are exported and sold.
Great Wall Motors is easily the most popular manufacturer in China and is well known throughout Asia for their quality cars sold at lower prices. With this Great Wall Motors is known for their larger vehicles (trucks and SUV's) more particularly their SUV's and only produces and sells 2 passenger sedan cars. Great Wall Motors has pride their self to creating affordable cars with modest quality, and with this they actually have the largest profit margin in the automotive industry to this day which I find to be very impressive. Their costs are usually cut by minimal expenditures in areas of R and D as they can afford to provide simpler cars to their emerging and developing markets for fractional costs of competition cars, again this is a benefit of their slow gradual approach, opposite to nearly all other manufacturers we know to be "worldwide". Just recently Great Wall Motors has expanded their operations into the European Union and have setup operation in Bulgaria which eventually will be able to supply the rest of the EU's countries with Great Wall Motors' vehicles. Another key move was the expansion into Russia which will prove again to gain more market.
Great Wall Motors do have plans of entering into more developed markets but they are following their steady gradual growth plan to achieve their long term objective and will definitely be an interesting company to follow over the next few years.
No comments:
Post a Comment