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I S S U E 2 6 1 0 2 y l u J E-Magazine ISSUE 22 07/2016

The Manufacturing ability of CONTENTS HAVAL plant An Exploration of the Production Comments From Media Factory of From Zero to 3 Million, What’s behind HAVAL’s Success? Overseas News of HAVAL Interview HAVAL Dealers Organizes a Test Interview of Brand Manager of Drive in St Petersburg GWM / HAVAL –ZAG Oman—Sulaiman Al Rashdi Report: Can the No.1 SUV brand in China take on the Australian Outback? Part 1: The stakes

HAVAL Headlines

The Sales of GWM in June

One More Miracle: HAVAL SUV Sales Increased by 13.09% in the First Half of 2016

GWM Shortlisted in Top 500 Enterprises of China as Listed in Fortune Focus From Zero to 3 Million, In fact, the focus strategy has and SUV are all well developed, always been a business strategy but Mr. Wei still didn’t think the 3,000,000 of GWM. Wei Jianjun, the company’s resources and What’s behind president of GWM, once said, strength were great enough to “GWM puts all its limited support the two major categories. resources on hand into the SUV So, he decided to focus on SUV. HAVAL’s Success? category, which is actually to Many people had doubt about his focus on the core. We have decision at that time, but Wei’s emphasized this for no less than move turned out to be correct. ten years.” Of course GWM’s car “Red envelopes worth RMB 300 million and gifts worth RMB 3 million to be handed out to costumers as a token of gratitude”. Let’s find out what the media have to say about this? This critical article came from auto-sohu, one of the most popular Being Down to Earth media in China Being down to earth without the way. There are a few Chinese conducted careful and strict eagerness for quick success, auto companies which were born budgeting and become the most instant benefits and superficial in the same period as GWM. profitable auto company as a n June 20, the Great Wall In today’s China where foreign Chinese to equate SUV with compliments is the second Some of them are successful, result. GWM has fixed its mind on Motor (GWM) launched a auto companies dominate the HAVAL of GWM and domestic feature of GWM and Wei Jianjun. some not. The successful developing SUV. It seems that thanksgiving event to “hand auto market, HAVAL has actually vehicle. O Being one of the oldest Chinese companies are all down-to-earth, GWM has given up the huge car out red envelopes worth RMB become a leader in Chinese SUV HAVAL’s success is a miniature of auto brands, GWM hasn’t got while the unsuccessful market, but it has actually made 300 million and gifts worth RMB 3 market, not only taking over the the fast developing auto industry much support of resources as a companies or those who are itself a leader of SUV for this million to costumers as a token of SUV market from foreign auto of China. Quite a lot can be private business. If it was not struggling to survive are most reason. Being a leader of SUV, gratitude” in order to celebrate enterprises, but also making the learned from GWM and HAVAL. clear about reality or not down to likely to crave for greatness, GWM is more worthy of that the sales volume of HAVAL nation recognize and accept earth, only seeking for instant success, large scale, and recognition. SUVs has exceeded 3 million for HAVAL and domestic vehicles. It compliments, this enterprise full range. Without many loans the first time. is extraordinarily significant for the couldn’t have come such a long from the government, GWM has Focus and Proficiency Customers First really implement it. integrity services with “customer However, GWM is satisfaction” as the core. Wei has one of the few who repeatedly stressed, “No flaw can really adhere to the be allowed in GWM’s concepts principle of "customer and the responsible attitude first”. towards customers. We dare to shoulder responsibility and Since it set its mind on SUV, it H9, has formed a complete range marketing service. With the increase of adhere to integrity.” No ceremony must do intensive work in this of SUVs with large, medium and HAVAL’s market The number of its users has is held this time for the sales of 3 segmented market so as to come small sizes, high, medium and volume and the exceeded 3 million. This has not million vehicles, but big red up with a rich range of models; low ends, urban and off-road increased “red sea” only laid a solid public foundation envelopes will be handed out to thus anyone with a demand for utilities. It has remained the sales competition of SUV, the focus for the brand of HAVAL to make Almost every company says that customers. This move is a SUV can find his or her favorite champion of SUV for 13 strategy of GWM has been further further breakthrough, but also customers come first, but few can genuine expression of such idea. product in GWM. We can see consecutive years. Thus, GWM deepened. It has begun to create won numerous praises and from the present situation that has gained higher and more reputation for Chinese brands. GWM has made it. HAVAL SUV professional technology R&D product line, from to strength and higher level of Generally speaking, the sales Chinese brands in the field of Speaking of this, in the face of the volume of HAVAL SUVs exceeding SUV. This has enhanced the situation that the SUV market has 3 million has made HAVAL the confidence of China’s auto moved from the blue sea to the banner and benchmark of industry to go further. Some red sea, the rest of Chinese Chinese auto brands. It is a Chinese brands, including HAVAL, brands should learn the essence milestone in the development of have been fully equipped with of GWM’s focus strategy to create Chinese SUV market, not only ability and strength to compete new market segments in the SUV breaking the situation that the with foreign brands. They shall field, and make their business joint-venture brands dominate stride forward bravely for the next greater, finer and stronger. This is Chinese passenger car market, challenge with the expectation of the only right way. but also witnessing the rise of China’s auto industry. i n t e r v i e w Please talk about your growing known of this brand at 2004 when I joined experience, such as personal hobbies, ZAG and I have witnessed the fast growth Since we launch HAVAL brand, what and experience of learning and career. of GWM from that time. I have seen how activities of brand promotion have you I am Sulaiman Al Rashdi. I came from a this brand got developed and gained company done and what effects did these beautiful country, called Oman in Arab consumers’trusts and market share, it has activities achieved? become one of the preferable pickup in Gulf. I have grown in the interiors of Oman We did a press launch. The launch Oman. in a village called Al Quratain. My passion covered in most of the press in Oman. We always with Cars since binging. I have Please talk about your opinion of HAVAL displayed HAVAL models in malls and did completed my high school then I had the brand. test drive campaigns. Afterwards we had chance to study marketing in Cairo launched many advertisements and When I saw HAVAL at first time I said wow. University and I got a scholarship from Al introduced a very good sales scheme and HAVAL SUV is really beautiful and I am Zubair Automotive Group to do MBA in UK launched last month for Ramadan sales. looking forward to the overseas success in 2009 at UWIC. I like sports, campaigns, of the brand after succeeding in China. What is your idea for the prospects of horses, reading and travailing. Nobody can guess it is a Chinese auto HAVAL in local market and future plan for Please talk about the history of brand if we don’t tell him. I am really HAVAL? cooperation between your esteemed satisfied with HAVAL and I am driving I wish HAVAL can come with bigger company and . What is now after Pajero/Jeep Grand engine and very attractive price, then I am the best memory for you? Cherokee/ Audi and many other cars sure this brand will be NO1. in Oman as I was the first employee dealing with Great where I did not find difference in the well. Wall Motors in feeling of luxury and prestige. In my ZAG. I have opinion, only need better price, can HAVAL has access to market and win the Interview of share of other brands in Oman. Brand Manager of GWM / HAVAL –ZAG Oman Would you share your work style and manage experience with us? —Sulaiman Al Rashdi I use the free management style. In other meaning I am a friend to my team and I make them believe on their target before I Profile set up target for them. I accept the Name：Sulaiman Al Rashdi arguments and judgments from others. I Title:The Brand Manager of Great Wall and HAVAL in ZAG always learn from my team, my customers Hobby: sports, campaigns, horses, reading and travailing and my management. I believe that, if we don’t believe in our product we will never be able to convince any others.

An Exploration of the Production Factory of HAVAL H7

roduct is the outcome of a production In order to assure customers and make them be process. Strict control over the production confident in H7, HAVAL organized “A Journey to P process directly determines the quality of Experience HAVAL H7” on July 8, 2016 in the end product. As the first intermediate SUV Xushui Haval Branch, inviting more can 30 car model launched by GWM, HAVAL H7 is subject fans from all over the country to have a close to rigid quality control during the production watch on the manufacturing of HAVAL H7. process.

Full Automation of Welding

The HAVAL H7 fleet arrived at the production line robots in the welding a vehicle. Welding Workshop II at 9 am. As workshop, including 521 Swiss one of GWM’s most automated ABB robots and 4 German KUKA The internationally advanced workshops, the Welding robots, which can automatically German Bosch welder is used, Workshop II covers an area of complete all welding and handling which effectively guarantees the about 65,000㎡ with planned operations, meeting the welding quality of the bodywork capacity of 250,000 units and requirement of the high-tempo and in turn improves the reliability 100% welding automation rate. operation of the line body. It takes of the product. There are a total of 525 units of on average 52 seconds to finish Close Connection between Parts and Components Assembling Procedures Creating a World-class Factory

which is primarily for the including the interior line, the intellectualization with the aim of assembly and testing of H7 whole chassis line and the assembly creating a world-class production vehicle, parts and components. line, three auxiliary packaging factory and improving product The workshop covers an area of lines and six professional quality and production capacity. more than 68,000 m2 and is one conveyor lines. All the line bodies of China’s largest assembly are closely linked to achieve The wide application of robots After visiting the welding workshops with the most timely delivery and installation of substantially increases the workshop, the car fans went to advanced production technology. numerous components. hardware level of the production the Final Assembly Workshop II, It has three main production lines, workshop, which not only sets employees free from onerous physical labor, but improves the Over 2,000 Strict Inspection Standards for Quality Assurance After the visit, the visitors have equipments, exquisite protection level and product found that HAVAL's Xushui manufacturing technology and quality as well. control and on-line monitoring are can be discovered and eliminated Project (Phase II) lives up to the safe and fine manufacturing conducted over the four major in time, thus preventing title of “a world-class factory”. It process controls, but also whole vehicle production unacceptable products from not only owns world leading integrates production concepts of techniques so as to enhance the being released. Meanwhile, automatic production lines and technicalization and accuracy of the vehicle and parts. real-time recording and saving of data are achieved through scientific process management, Steadily Increasing Sales Volume of HAVAL H7 It is learned that an acceptable thus forming “digital archives”, H7 must go through over 2,000 which can prevent the outflow of As HAVAL’s first intermediate SUV model, H7 has won the wide recognition of quality inspections, during which nonconforming products and consumers. Over 8,000 orders have been received in one month since the the principle of “no acceptance of make accurate tracking of model was launched. However, GWM, known for high demand on quality, defective products, no problematic vehicles. does not blindly pursue rapid sales increase. Instead, HAVAL takes every manufacturing of defective Take the main welding line in the possible means, including highly automated production lines, over 2,000 products and no release of welding workshop for example. test items and road tests to ensure that every H7 rolling off the production defective products” is strictly Robots are used for online line are of rigid tests and inspections, and of high quality. practiced. Meanwhile, precision real-time detection, so defects HAVAL DEALER SPB-YUG”” ORGANIZES A TEST DRIVE IN ST.PETERSBURG

On a sunny weekend in the bright summer, HAVAL dealer Spb-yug”” organized an outdoor test drive in St Petersburg, Russia. Themed “HAVAL Family Day”, 150 locals were invited for this event, including HAVAL owners. As many as 80 exciting test drives not only pleased the participants’ mind and body, but also offered a relaxing and delightful weekend for the audience on the spot. A Passionate Test Drive of HAVAL SUV in the Open Field boasts reliable quality, rich is an exquisite and design added a trace of smartness configuration and all-round innovative SUV model. The chic to the test drive. Under the blue sky and white looking forward to the lofty horizon the HAVAL SUV on the rugged balanced performance, which help and all-match outline, the golden clouds, the local people either through the sunroof of the vehicle. ground. The HAVAL fleet ran fast it win the hearts of consumers. ratio and sophisticated interior drove in person to feel the surging Strong power output, flexible with passion in the grassy open power of HAVAL models when control and steering, fine-tuned field. Carrying the laughing drivers taking in the vast and boundless suspension and relatively higher and passengers, the HAVAL fleet Fine weather, beautiful views, good mood, photography views in front of the vehicle, or just ground clearance brought in a took the test-drive journey to a and delicacy elevated the experience. sat in the back row to feel the superb sense of twisting, turning, climax, leaving many memorable Good things are worth sharing. grass and wild flowers and the After the test drive, a customer spacious and quiet interior when jumping and shifting when driving and splendid moments. Let’s review wonderful moments moist soil air blowing on the face said, “HAVAL is a star in my eye. of the event! made everything so fresh Rugged mountains with crisscross ravines and gullies and wonderful. made each HAVAL model show its best. After the tense and thrilling test drive, the local people present When enjoying the break, The entire HAVAL family in Russia ability which enables the SUV to suspension in the rear can began to have a break and enjoy the participants came to showed up to present a marvelous deal with mountain, mud, desert, significantly reduce the bumping delicious drinks and desserts, take photos with HAVAL outdoor experience for this activity. beach and other complex terrain. on the road and create a quiet, which started a delicacy journey SUVs and posted the comfortable riding space for people HAVAL H9, an all-terrain 7-seat , a premium business to reflect on the driving photos on social media, like in the addition of intelligent SUV model, which is second to SUV takes you to have a thrilling experience. A unique picnic in the FACEBOOK, to share their four-wheel drive doubles the none in cross-country driving and ride in the vast openness. As a open field, refreshing fragrance of joy with more friends. competence of the H8, so it can crossing ravines and gullies was super deluxe SUV model, HAVAL easily cross the gully. the first to show up and H8 integrates urban driving and The test drive is a big success. demonstrated its superior off-road cross-country driving. Equipped , an urban intelligent performance and strength. The with the same engine as H9, H8 SUV model, stands out with stable Wonderful test drive experience, support to ensure everything participants, this may not just be 2.0T turbocharged engine plus 6 also boasts strong and reliable performance instead well-prepared outdoor picnic and would go well as planned. an event, but the start of HAVAL's AT power assembly are well-tuned power. The of cross-country impressive feedback after the coming into their lives as well. The pleasant and relaxing “HAVAL with strong power output. combination of a driving. As a event proved the test drive a Family Day” has come to an Professional SUV chassis and double wishbone star model with complete success. The success end. For the suspension equipped with suspension in average monthly couldn’t have been achieved intelligent four-wheel drive system the front and sales over 40,000 without sufficient preparation by give the HAVAL H9 strong passing a multi-link sets in the first half the HAVAL dealer Spb-yug. They of 2016, H6 had launched online publicity very early to attract people’s attention, and formulated detailed road map, which made it convenient for the public to attend the event. At the same time, they had also made sufficient material REPORT: CAN In Australia, the brand the border between Queensland THE NO.1 SUV BRAND IN operates out of 6 and South Australia, through the dealerships: one in unsealed, rough-as-guts and CHINA TAKE ON THE Sydney (pictured legendary Birdsville Track. It’s a above), two in the gruelling 5,000 km return trip to be Melbourne area, one in completed in one week only, going AUSTRALIAN Brisbane, one in Perth through bitumen, dirt, sand, mud, and one in Wagga gravel, rocks and bull dust. OUTBACK? Wagga near Canberra. Needless to say, no If at BSCB we have Haval-branded vehicle has ever PART 1: THE STAKES been very impressed set its wheels that far into the with Haval’s commercial Australian continent yet, so if we Haval is the No.1 SUV brand in China for the past 13 consecutive Already extremely successful at success at home, lightning fast manage this feat, it will be a world China. Can it tackle the years. Great Wall has been very home, Haval is now spreading its Andrew Ellis, it turns out this is lineup expansion, as well as first, no less. We want to find out Australian Outback then? efficient at developing the Haval wheels worldwide and has been because Haval is still in the attractive exterior and interior whether the No. 1 SUV brand in lineup, earning the #1 spot in our available in Australia since last process of getting certification by design, we had not driven one yet. China can take on the Australian If you are a regular BSCB reader, annual ranking of the Most October, even though the brand the FCAI – so it should pop up This gap is now filled: today we Outback and its treacherous you will already be familiar with the impressive Chinese brandsboth at has yet to make its appearance in later this year. have access to a Haval H8 for one conditions. If nowadays the Chinese brand Haval. It has been the Beijing Auto Show in 2014 and the Australian sales charts. week. When given the same Birdsville Track can be traversed the best-selling SUV brand in the Shanghai Auto Show in 2015. Speaking with Haval PR Manager The sole Haval dealership in length of time for a review, local with any vehicle in dry conditions, Sydney, located in the Western Australian press such as wet weather can render it totally suburb of Lansvale. Motoring.com.au only took the car impassable in a matter of minutes through “freeway-biased and the region has received more In fact, Great Wall is now present commuting [to work]”. rain so far in 2016 than it normally in a dozen worldwide markets: does in three years, making it a starting in June 2015 with Russia This is not how we do things at true challenge for any car. and Chile, the marque then BSCB… expanded further in Latin America with Ecuador, Bolivia, Peru and We want to drive the Uruguay, to Asia with Azerbaijan, Haval H8 from Sydney Georgia and Malaysia, Africa and to Birdsville – and back. the Middle East with Iraq, Oman, the UAE, Benin and South Africa we are aiming at driving and its only truly mature market the Haval H8 well into the to-date: Australia. harsh Australian Outback: all the way to Birdsville at I took a Mitsubishi Mirage these are well and truly possible throughout the trip to with the small H2 and There’s only one way to find out, through the Oodnadatta Track on board. gage the chances of this new the Toyota Prado-competing full and it’s called a wet and muddy in 2003. brand making its mark in time 4WD H9 complete with snow Birdsville Track. Before we can Can Haval replicate Australia. There are only a and sand modes. set off though, our H8 needs a There are a few elements at the initial success of handful of other Chinese name. After Albert, Bob the Rams stake in this challenge. Great Wall in carmakers operating in Australia If the H9 is expected to go and Charlie our Hawaii Jeep Australia? currently, but none is coming anywhere, testing the H8 is where Wrangler, H8’s name has to start The first is pure and simple anywhere near the success Great the true challenge resides, as it is with D and he has been baptised survival. The areas we will be The second challenge is a what is called in Australia an AWD to be hurled at the brand on local Wall achieved in its first couple of Damo – Aussie short for Damian exploring with the H8 are some of branding one. In the rare mature SUV, meaning the 4WD mode is automotive forums, they mostly years in market. LDV (625 sales) – so he fits in with all the other the most isolated in the world, markets where they have switched on electronically when come from customers having and Foton (356) both hold a tiny kids in the yard (See why I chose with almost no traffic, no mobile ventured so far, Chinese the car feels it needs it, prompting never tested a Great Wall vehicle, 0.1% market share so far in 2016, a male name here). Indeed in coverage, no towns for hundreds manufacturers have to deal with some to say it’s not a real 4WD. whereas owners are by and large whereas has all but Australia, and in particular in the of km and sometimes no petrol the same level of hostility Add to this the fact that China very satisfied with the reliability of disappeared (9) and both Outback, no name stays intact – station for up to 500 km. I have Japanese carmakers had to hasn’t really yet caught up with their purchase, especially in the and MG have thrown the towel for even Matt becomes Matty – and chosen to undergo the trip alone, suffer in the 1950s and 1960s, the worldwide off-road driving Australian Outback: in 2014 I met now. In other words, market all are fondly played with: with no sat phone. Foolish? It will then Korean carmakers in the fever – most SUVs and a Great Wall owner in Bourke conditions are at an all-time low Jonathan becomes Jono, Dick test the solidarity of fellow 1980s – some would argue until crossovers sold there are who replaced her ailing Toyota for Chinese carmakers in becomes Dicko. And it doesn’t travellers as well as the Haval just recently. Launched in 2009 in 2WD-only and never get taken Hilux with a Great Wall SUV and Australia and adverse stop with names: see favourite promise of 24/7 roadside Australia, Great Wall has been out of the city – it begs the has never looked back since. perceptions at an all-time high. Australian slang: When in doubt, assistance in case any technical the only success story of its kind question: is the H8 actually a true add an “o”. issues were to point their ugly so far here, peaking at #16 in The Haval H8 in a scary – yet Haval H8 Premium AWD – with 4WD-capable vehicle and can it head. Extra water, food, clothing 2011 and selling 37.163 units controlled – posture at the a facetious license plate. perform on very poor road Welcome to the Australian and fuel in the form of two 20L to-date. An asbestos controversy Guangzhou Auto Show 2015. conditions? Australia has a long Outback, Damo. jerrycans are mandatories in and disagreement with its The third challenge – and tradition of off-road exploring and order to survive any type of ordeal previous importer Ateco has However, launching yet another arguably the most interesting – is true adventure, so it’s the perfect http://bestsellingcarsblog.com/20 16/06/can-the-no-1-suv-brand-in in the Australian Outback, and meant the brand is currently at a brand, Haval, means Great Wall a capability one. The vehicle we sandpit for such a test. -china-take-on-the-australian-out standstill (11 sales in has to start from scratch again have at our disposal for the week back-part-1-the-stakes/ 2016), but is staging a and build its reputation from the is the Premium AWD. It competes Give a warm welcome to Damo, comeback later this year bottom up. I have been sceptical with the likes of the homegrown our Haval H8 for one week. with the new generation of this branding strategy that Ford Territory, the Holden Captiva More generally, can Haval back Wingle 6 pickup through seems like a lot of work where the 7, Pathfinder and Jeep up its claim of No.1 SUV brand in the same importer as Great Wall brand had already Grand Cherokee. The H8 is part China and aspirations of Haval: Performax. Even cleared some ground. I’ll be sure of a three-model lineup currently becoming the No. 1 SUV brand in though insults continue to speak with as many locals as offered by Haval in Australia along the world with truly capable cars? GWM saw sales of 65,600 vehicles in June with 29.03% year-on-year growth

According to the production and sales news lately released by GWM, 65583 vehicles were sold in June, with a rise of 29.03% over the same period of last year, and 450252 vehicles were sold accumulatively in the first half of this year 10.91% with 8.41% year-on-year growth, thus realizing steady sales growth during the Meanwhile, GWM maintains stable performance on pickup and passenger car markets, with 6864 Wingle 6864vehicles slack season. pickups sold in June, a 10.91% year-on-year growth, and 1172 passenger cars sold in June. Totally 52450 pickups J u n e and 19083 passenger cars were sold in the first half of half of this year 450252vehicles 8.41% this year. 1172vehicles 52450vehicles J u n e 65583vehicles 29.03% half of this year 19083vehicles On the fiercely competitive achieves accumulated with 3594 vehicles sold in SUV market, HAVAL SUV sales of 240253 vehicles in June, a 13.20% still takes an absolute the first half of this year month-on-month growth, GWM Shortlisted in Top 500 Enterprises of China leading place, achieving with 39.68% year-on-year and achieves accumulated sales of 57547 vehicles in growth. HAVAL H2 sales of 8059 vehicles as Listed in Fortune June, an increase up to continues to sell well, with since its launch at Beijing 35.37% year on year, and 10089 vehicles sold this Auto Show. As demand On July 13th, American magazine Fortune (Chinese version) has shortlisted the top 500 Chinese realizing accumulated month and 72334 vehicles exceeds supply on the end enterprises in 2016. Great Wall Motor Company Limited (GWM) was shortlisted in them for the sales of 378718 vehicles in the first half of this year, a user market, HAVAL H7 seventh consecutive year and ranked the 76th, with significant improvement in ranking and an the first half of this year. As record kept for 21 months will see very considerable 18-place rise when compared with last year. for specific models, for selling more than sales as the production HAVAL H6 maintains 10,000 vehicles monthly. capacity improves. It is understood that the Fortune's list of top 500 enterprises of China is an inventory list of the strong sales of 37547 Known as “a new growth 35.37% Chinese enterprises which are listed in Chinese stock market, selected based on the information vehicles in June, an point” in the automobile 57547vehicles and data officially disclosed by those listed companies in stock exchanges. In the list of top 500 impressive increase of industry, HAVAL H7 makes J u n e enterprises of China issued in 2016, some automobile enterprises such as GWM, SAIC Motor and 60.06% year on year, and steady progress in sales, SUV DFM ranked among the top 100 enterprises. 240253 72334 8059 378718vehicles half of this year It is reported that GWM's outstanding quality performance and service have been accepted by authorities and the media since 2016 and GWM has won the prizes of "Top 10 Brands of 37547 39.68% 3594 13.20% Automobile After-sales Service in China", "Top 30 Enterprises in China's Automobile Industry", 60.06% 10089 "China's Top 500 Enterprises in Brand Value" and "Top 2000 Enterprises in Forbes List 2016". HA V AL H6 vehicles HA V AL H2 vehicles HA V AL H7 vehicles J u n e half of this year J u n e half of this year J u n e launch at Beijing Auto Show