According to the half-year report released August 23rd by Wuling Motors Holdings Limited (Wuling Motors), the company’s revenue in the first half of 2023 was RMB 5.089 billion and its net profit was RMB 12.26 million. It is particularly noteworthy that the company’s new energy vehicle (NEV) business saw its proportion rise steadily and also performed well in overseas market expansion, with huge business potential. For example, after launch, a number of upgraded versions of off-road vehicles such as sightseeing buses and golf carts received satisfactory responses from overseas markets.
As the NEV industry develops rapidly, product upgrading and innovation are becoming new driving forces for the future growth of Wuling Motors.
Products Upgraded to Adapt to Market Changes and Release Transformation Potential
Since the beginning of this year, Wuling Motors has accelerated its transformation from traditional manufacturing to intelligent products, intelligent manufacturing and digital services throughout the whole life cycle of vehicles with the goal of strengthening, supplementing, extending and stabilizing the chain. Wuling Motors’ core products now cover the entire automobile industry chain, with continuous efforts being made to expedite its transformation towards the NEV field.
As one of the company’s main business segments, its component business enters the breakthrough stage in 2023. In terms of new business expansion, Wuling Motors has become a component supplier of, GWM, Foton, Hozon, and BAIC, among others. For further expansion and diversification, Wuling Motors continues to carry out various business expansion plans and promote its components to other customers. Things fare well at present. Lately, a new rear axle product of Liuzhou Wuling Automobile Industry Co., Ltd. under Wuling Motors has been applied to GWM’s high-end plug-in hybrid off-road SUV models and its production capacity has begun to climb. In addition, the sales of micro integral electric axles have exceeded 1 million units. By closely connecting products with customer needs and designing products based on the logic of technology platforms, Wuling Motors can not only customize its components for a particular vehicle model but also quickly adapt them to more vehicle models. It aims to shorten its development cycle and improve its product reliability to meet the market’s demand for a quick new product launch pace. Regarding the power system business segment, Liuzhou Wuling Liuji Power Co., Ltd. under Wuling Motors has impressively improved its profitability resulting from the launch of new products. Moreover, it has also actively explored new markets for its casting products, from which supply of casting products to BYD in quantity has been started.
Despite a host of challenges in its transformation as a traditional enterprise, Wuling Motors tries to meet market needs through overall improvements and adjustments in technology and the industrial chain and to seize opportunities brought by industry changes through early planning. The company is making achievements in its transformation which covers the range of hybrid power systems and new energy power systems. In terms of auto components and power systems, Wuling Motors has transformed its logistics vehicles and special vehicles into electric vehicles or NEVs. In particular, it made a major breakthrough in the NEV market recently. Since it launched its electric logistics vehicles in 2020, it has sold more than 20,000 electric logistics vehicles, reaching a record high.
Wuling Motors have also exported its off-road vehicles such as sightseeing buses, patrol cars and golf carts to new overseas markets such as Southeast Asia, America, Europe, and Africa, winning the recognition of international customers with excellent service, high quality, and customization ability. On August 8, two off-road vehicle models of Wuling Motors officially made inroads into Canada. Previously, it had put its golf carts into the Hong Kong market. Logistics vehicles in cooperation with some Japanese partners have realized mass production and been exported to Japan in quantity. Wuling Motors is committed to providing global customers with high-quality solutions for diverse scenarios such as tourism, leisure, sports, and logistics.
Exploring Opportunities in the NEV Industry
On August 17, the People’s Bank of China released its 2023 Second Quarter China Monetary Policy Execution Report. The report points out that developing NEVs is the only way for China to move from a large automobile country to an automobile power, and that it is also a strategic measure to cope with climate change and promote green development.
In recent years, China’s NEV industry has been flourishing, driven by the nation’s policy support, technological progress, and market demand. China ranks first globally in the export volume of NEVs, with more than 60% of the world’s NEVs produced and sold in China. The penetration rate of NEVs in the Chinese market is projected to exceed 60% by 2025, and the market share of Chinese automobile brands is likely to increase to 70%.
This makes Wuling Motors firmly resolute in dedicating itself to the NEV field. Apart from vehicles, the company is also seeking new business opportunities in the component industry chain. In terms of automobile power supply systems, Wuling Motors pursues green and low-carbon transformation and high-quality development. While upgrading its traditional power systems, it is also developing new energy power systems to accelerate its transformation and upgrade towards NEV power systems. As for auto components and other industrial services, Wuling Motors continues to further digitize its component R&D and manufacturing to develop popular high-end component products with advanced technologies and core competencies, as a continuous effort to expand to mid-to-high-end passenger vehicle and NEV component fields. In terms of commercial vehicles, Wuling Motors will seek breakthroughs in high-value-added modification, expand to the market of high-value special modified vehicles and other products, continue to develop the international market, and strive to bring more products to global markets by learning the export models and relevant experience of the United States, Japan, and Europe. It will seize market opportunities to multiply its NEV business.
It is said that Wuling Motors expects to raise the proportion of its NEV business to more than 50% to further accelerate its development. As Yuan Zhijun, President of Guangxi Automobile Group Co., Ltd. and Chairman of the Board of Wuling Motors, put it, Wuling Motors hopes to gain recognition and strengthen its development in the NEV market through product R&D and technical reserves, so as to push the transformation and upgrading of the whole group company’s component business. Besides further promoting its products to its existing customers, Wuling Motors will also try to play a better role in the NEV field by strengthening its NEV product planning.
Topic: Press release summary
Sectors: Automotive
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