Chess game in the crevice: Great Wall Motor's Overseas Strategy

Source: Great Wall Motor

Not long ago, a ceremony with historical significance concluded in Iracemápolis, São Paulo State, Brazil.

Great Wall Motor's Brazilian plant has officially completed construction and commenced production, with Brazilian President Lula personally signing the body of the first-off-the-line Haval H6 GT. This is not only recognition for a Chinese car company but also a distinctive mark for the "going global" of the Chinese automotive industry.

The factory was previously owned by the Daimler Group and has now been transformed and upgraded by Great Wall to become an intelligent production base covering core processes such as welding, painting, and assembly, with an annual production capacity of 50,000 vehicles. It is not just a production line but also Great Wall's strategic foothold in the Latin American market, with Brazil as the center, reaching out to Mexico, Argentina, Chile, and other markets, linking the global layout of Eurasia, Southeast Asia, and Latin America.

For Brazil, it means employment and industrial chain upgrading; for Great Wall, it is the concrete point of the "ecological going global" model.

Unlike the "export-oriented overseas expansion" of Chinese car companies more than a decade ago, this time Great Wall has chosen a more complex and challenging path in Brazil: deep localization. Production is just the beginning; Great Wall is not only introducing local component manufacturers into the supply chain but also shaping brand identity by promoting cultural exchange and integrating into social customs.

A few days later, Mu Feng, the president of Great Wall Motors, who had just returned from São Paulo, shared his cross-ocean reflections with me—how to ensure that overseas expansion goes beyond just selling cars and achieves deep integration of the entire value chain of "research, production, supply, sales, and service"?

Behind this, there are stories of the integration of Chinese and foreign industrial chains, as well as the global ambitions of Chinese automotive brands.

After all, the era of relying solely on exports is over. Today's Chinese car companies are not only dealing with sales curves but also figuring out how to take root and thrive again in different cultural soils, institutional environments, and consumer habits.

Great Wall Motors chose to launch its Brazil factory at this time and proposed the strategic slogan "Ecological Expansion," which essentially addresses a common industry question: Can Chinese car manufacturers truly pave a way to access global high-value markets beyond the fiercely competitive domestic market?

"Ecological Going Abroad": From Selling Cars to Selling Ecology

In the communication, Mu Feng repeatedly emphasized a term - "ecological going abroad." In his statement, this is not a fancy slogan, but a survival logic that has been repeatedly demonstrated by Great Wall Motors.

Over a decade ago, the first overseas ventures of Chinese independent brands mostly remained at the level of "selling cars": straightforwardly exporting cars to overseas markets and then competing for customers with price advantages.

However, such logic quickly exposed its shortcomings, with cultural differences, consumption habit differences, and policy barriers following one after another. The product life cycle is short, and brand recognition is difficult to establish. Mu Feng stated frankly: "When going abroad is merely a form of trade, it is bound to face drawbacks."

Great Wall wants to change this. The so-called "ecosystem going abroad" means bringing research and development, production, supply chain, channels, and services together to form a complete value loop. More importantly, it not only pursues functional localization but also cultural localization.

For example, on icy roads in Russia, the recognition of auxiliary driving lane markings is almost "paralyzed"; while in Brazil, consumers' demanding requirements for in-car audio systems even surpass their concern for power performance. There are many more differences like these, and without truly immersing oneself, it is impossible to understand them through domestic research logic.

Another key aspect of "ecological expansion overseas" is the dual-path strategy of the supply chain: on one hand, building your own system to ensure the controllability of core components; on the other hand, collaborating with mature local industries to truly retain value locally. This forms a stark contrast with early export models. Mu Feng likens this model to a "forest ecology" — not a solitary tree, but a community that can nourish each other.

Some may raise doubts: Isn't this model too idealistic? After all, whether in South America or Eastern Europe, market policy uncertainty and geopolitical risks always exist. Moreover, the deeper the localization, the greater the investment, and the longer the return cycle. For a car company, is it worth taking such risks?

Mu Feng's response was straightforward: If it's only about selling cars, Chinese automakers will find it difficult to gain genuine respect overseas. Only when the brand becomes part of society, when factories integrate with the local economy, and when products bring real employment and life improvements, will "Chinese cars" no longer be a cheap alternative but stand alongside Japanese and German cars as a long-term presence.

In other words, "ecological expansion overseas" is not merely an added bonus, but rather the survival baseline set by Great Wall Motors for itself.

Global Chessboard: Seeking Incremental Growth in the Cracks

If the global automobile market is compared to a chessboard, then China, the US, Europe, Japan, and South Korea are the "central squares"—everyone wants to occupy them, but the situation has long been locked. According to Mu Feng's analysis, these five major markets together account for nearly 70% of global sales, but they are almost entirely stock markets: mature in consumption, fiercely competitive, with extremely high entry barriers.

The barriers in the North American market are the most apparent. Traditionally, it has been the stronghold of American car brands, and Korean and Japanese car brands have taken decades to gradually gain market share. For Chinese car companies, apart from a few electric vehicle brands making small-scale attempts, most find it difficult even to cross the threshold. The Japanese and Korean markets are even more impenetrable, forming an almost closed industry ecosystem. It's challenging for not only Chinese brands but even European and American car companies to make inroads.

Since the central grid is difficult to break through, opportunities can only be found at the edges. The answer given by Mufeng is: "EU + Incremental Market." Although the EU is also a mature market, its rapid pace of energy transition and strong policy-driven initiatives mean that Chinese brands' advantages in electrification and intelligence can, to a certain extent, compensate for cultural and channel shortcomings. More crucially, the openness of the EU market is relatively higher than that of the US, Japan, and South Korea, making it the "top priority" overseas target in the eyes of Great Wall.

Another breakthrough is the overlooked "incremental market." Latin America, the Middle East, Southeast Asia, and Africa account for more than 30% of the global market share and are far from saturated. Take Brazil as an example: the number of cars per thousand people exceeds 500, yet there remains a contradiction of insufficient public transportation and a strong essential demand for cars. The consumption logic here is vastly different from that in Europe and the United States: a car may not be a status symbol, but rather a necessity for daily family life. Great Wall has decided to heavily invest in a factory in São Paulo, precisely because it values this combination of "necessity + void."

This choice seems pragmatic, yet it is also full of challenges. Incremental markets imply potential, but also mean policy uncertainty, exchange rate fluctuations, and inadequate infrastructure. As Mu Feng said, "One must delineate the geometric scope of friendliness, dependency, and market size before deciding on investment." In other words, this is not merely a business decision, but rather a geopolitical and industrial chain gamble.

Critically speaking, Chinese car companies' overseas expansion can easily fall into the "Japanese trap." In the last century, Japanese brands similarly swept the globe with cost and efficiency advantages, but when global dynamics shifted and exchange rate shocks occurred, they quickly found themselves in trouble. Can Great Wall avoid repeating the same mistakes? The key lies in whether its "ecological overseas expansion" can truly build a more solid moat than price advantage.

In this global chess game, the Great Wall resembles a patient player: cautiously arranging the central squares while accelerating breakthroughs in edge markets. The question is, can this path of survival in the cracks support the Great Wall's ambition for globalization? Perhaps some answers can be found in its technological layout.

Multi-power route: Philosophy of technology and product boundaries

Great Wall's adherence to its technical route is often interpreted by outsiders as conservative—not adopting range extension, not betting on a single technology, but instead proposing a concept that sounds somewhat vague: "General Internal Combustion Engine Strategy."

Mu Feng's explanation for it is: balanced development of multiple power routes, none can be abandoned.

The differences in new energy infrastructure across countries mean that powertrain strategies cannot be uniformly applied. In China and Europe, the density of charging stations and policy subsidies make PHEVs the main family vehicle, while pure electric vehicles are more suitable as a second car. In Russia, the long winter and scarce home charging stations render pure electric vehicles almost non-existent in the market. In Brazil, low electricity prices and ample parking spaces provide a broad prospect for the popularization of pure electric vehicles.

Supporting this global adaptation is Great Wall's component management thinking. Simply put, it's about modularizing engine, motor, electric axle, and electronic control, and then "assembling" them according to market demand. It's like building blocks: missing one piece is fuel-powered, adding one piece is PHEV, and changing the combination becomes pure electric. This modularization not only enhances efficiency but also allows Great Wall to quickly respond to different energy policies and fuel differences in the global market. Mu Feng even frankly stated that Great Wall's technological architecture is closer to Toyota's TNGA—pursuing efficiency rather than the brand's "exclusive technology" showcase.

However, this multi-power strategy also raises a question: does it imply a strategic swing in technology? As the industry generally accelerates towards electrification, will Great Wall's insistence on multiple routes miss the opportunity to lead in a single field? Some critics believe that multi-power can easily disperse research and development resources, reducing the possibility of breakthrough innovation.

On the other hand, multi-power is precisely Great Wall's survival philosophy. Amidst the electric wave sweeping everything, it maintains a sense of calm: rather than chasing conceptual curve overtaking, it uses a longer time cycle to build the "optimal solution" for different global markets.

The boundaries of technology are ultimately defined by the market. The choice of Great Wall is both a response to the global imbalance and a commitment to its own long-termism. It may not be the fastest runner on the new energy track, but it strives to be the one that lasts the longest.

Long-termism and High-quality Development: The Essence of the Great Wall

When discussing "high-quality development," Mu Feng did not provide complex KPIs but instead placed "trust" as the top priority. In his view, whether it is Chinese users or overseas users, the ability to establish long-term trust determines whether Great Wall can gain a foothold in the global market.

"As long as the user is still driving this car, we must continue to maintain it." The sharpness of this statement lies in its direct hit on the essence of the era of intelligent assisted driving and software iteration: the relationship between car companies and users has shifted from "a one-time transaction" to long-term companionship.

This is also why Great Wall insists on independent research and development in intelligent driver assistance. Mu Feng even used the phrase "life and death" to describe it: "If we fully entrust intelligent driver assistance to suppliers, that would be irresponsible. Great Wall simply couldn't exist." This statement has a very clear attitude, reflecting Great Wall's understanding of the intelligent trend. Compared to the common practice of outsourcing in the industry, Great Wall has chosen a heavier and more difficult path.

When facing "involution," Great Wall's answer is differentiation. Price wars are a product of homogenization, and only when a product truly forms an irreplaceable label can it break out of the vicious cycle. From the focus on Haval SUVs to the narrative of "tough yet tender" for the Tank brand, and then to the differentiated positioning of Wey and Ora brands, Great Wall has consistently tried to give each sub-brand an independent soul, rather than a copy-paste template.

Long-termism is not romantic; it means sustained investment and delayed returns. Mu Feng revealed that Great Wall hopes to adjust the current imbalance between domestic and overseas sales to nearly 1:1 within the next three years. This is almost a high-pressure sprint: they need to "counter involution" domestically while expanding their territory overseas. In his view, this is the most scientific goal and the one that aligns best with Great Wall's survival logic.

Critically speaking, long-termism is also the concept most prone to misuse. Almost all car companies use "long-term" as a cover when facing short-term pressures. However, for Great Wall Motors, the real test lies in whether it can adhere to value-driven principles while maintaining sufficient efficiency and innovation speed, so as not to be left behind by the times.

The story of the Great Wall ultimately falls on a kind of "patience." It doesn't have the radical ventures of Tesla nor the extreme meticulousness of Japanese cars, but rather chooses a path more akin to that of a "farmer": sowing, rooting, waiting for the harvest. In the face of the dual waves of globalization and electrification, this stance may seem clumsy, yet it might still hold a future.(This article was first published on the Titanium Media APP, author | Li Yupeng, editor | Li Chengcheng)