Great Wall Motor announces May vehicle sales at 102,231 units.

Great Wall Motor announces May vehicle sales at 102,231 units.

Great Wall Motor (GWM) has reported its vehicle sales for the month of May, with a total of 102,231 units sold. This figure represents a significant increase from the previous month, indicating a strong performance in the competitive Chinese automotive market.

The company's president, Wei Jianjun, has recently raised concerns about the sustainability of the industry due to a fierce price war launched by competitor BYD. BYD's aggressive pricing strategy, which includes discounts of up to 34% on price lists, has forced competitors to respond similarly, leading to a general erosion of margins [1].

GWM's sales figures come amidst a broader industry trend of increasing competition and price cuts. According to available data, industry profits in the first four months of 2025 are down 5.1% year-on-year, highlighting the pressure on margins. However, overall sales are expected to grow between 4 and 5% for the year, reaching 33 million units, with new energy cars (NEVs) up 24% and a share approaching 50% of total registrations [1].

The market's resilience is evident despite the competitive pressures. Anticipations for May show sustained growth for players such as BYD (+10%), Tesla (+32%), Li Auto (+28%), Leapmotor (+150%), and Xpeng (+215%) year-on-year, demonstrating a still lively demand supported by innovation and electrification policies [1].

GWM's sales performance in May underscores the company's ability to navigate the challenging market conditions. However, the long-term sustainability of the industry remains a concern due to the risk of a domino effect similar to the Evergrande crisis. The sector's fragmentation, with over half of the 169 active manufacturers holding less than 0.1% market share, and the estimated 50% production overcapacity, make the market vulnerable to price cuts pushing weaker players out [1].

References:
[1] https://en.ilsole24ore.com/art/byd-and-great-wall-and-price-war-risk-evergrande-the-chinese-car-AH9nvL2