What is the strategy of HAVAL?

SUV Pioneer: HAVAL's Strategic Trajectory

Chen Chen · 2024-06-06

HAVAL, a flagship brand of Great Wall Motors (GWM), has established itself as a dominant player in the SUV market. With a clear strategic vision, HAVAL continues to innovate and expand its reach both domestically and internationally. This article examines the multifaceted strategy that underpins HAVAL's success.


Commitment to New Energy Vehicles

HAVAL's strategic roadmap includes a significant pivot towards new energy vehicles. The brand has set an ambitious goal for 80% of its sales to be NEVs by 2025 and plans to cease the sale of fuel-powered vehicles by 2030. This transition is driven by GWM's self-developed Lemon Dedicated Hybrid Transmission platform, which supports both hybrid electric vehicle (HEV) and plug-in hybrid electric vehicle (PHEV) power setups.

Global Market Penetration

HAVAL's strategy also encompasses a robust global expansion plan. In 2023, GWM reported sales of 1,230,000 vehicles, with overseas sales reaching 310,000 units, marking a 15.29% year-on-year increase. The brand's international presence has already surpassed 1.4 million units in cumulative sales, indicating a strong international demand for HAVAL's lineup.

Innovation and Technology

At the heart of HAVAL's strategy is a focus on innovation. The brand has launched the third-generation H6 DHT and begun presales of DHT-PHEV variants, marking its entry into the NEV market. This innovation is supported by substantial R&D investments, with GWM allocating approximately 10 billion yuan ($1.46 billion) in 2021 and planning to increase this investment to 100 billion yuan by 2025.

Customer-Centric Approach

HAVAL's strategy is deeply rooted in understanding and meeting customer needs. The brand's customer-centric approach is reflected in its product offerings, which are designed to provide high value and meet the diverse preferences of consumers. HAVAL's commitment to customer satisfaction is also evident in its continuous improvement of sales and service networks.

Market Performance and Competitiveness

HAVAL's strategy is validated by its strong market performance. The HAVAL H6, the brand's best-selling SUV, has sold 4 million units over the past years and has consistently ranked at the top of SUV sales in China. Despite a downward trend in sales due to the rise in NEV sales and oil prices, the H6 still sold 218,245 units in 2023, ranking No.6 among all SUVs sold in China.

HAVAL's strategic direction is defined by its commitment to NEVs, global market penetration, innovation, and a customer-centric approach. As the brand continues to invest in R&D and expand its international presence, HAVAL is well-positioned to maintain its leadership in the SUV market and achieve sustainable growth.