“We stay, we work and we want to sell more”

The Chinese brand Haval was among the few automakers increasing supplies and market share in Russia even against the backdrop of the current acute crisis. The executive director of Havale Motor Rus spoke about the availability of cars, the launch of other Great Wall Motors brands and competition in an interview with Kommersant Andrey Akifiev.

— How do you evaluate current sales?

— It is important, perhaps, to look at the industry in which we live. Of course, what we originally planned became quite difficult to implement when the market fell sharply. But we managed to adapt both production and sales, and I would assess what is happening now quite positively.

If we look at the development, we will see a fairly good growth. Let’s say in August sales grew by 26% year-on-year and 51% compared to July. In September – another 15% compared to August. Demand is starting to recover and is generally in line with expectations that we formed around the middle of the year. The company is satisfied with the result.

You can look at the Jolion model in more detail, because for us it is the main one …

– The most massive?

– Yes. Depending on what statistics you look at – according to Avtostat or AEB, recently from month to month Jolion is either second or third in the top sales after Lada. That is, our actions to promote the model bring a good result. The car is interesting not only for private buyers, but also for corporate clients – in particular, for taxis. You may have noticed that a certain number of such cars appeared in Moscow. It is also suitable for car sharing. Plus, the car became a member of the state support program, which also gave a tangible result.

— What is the situation with the warehouse? Is there a shortage of cars?

“Inventory allows our dealers to sell the quantities they need. We do not receive complaints from them about the shortage of any of the models.

What about specific modifications?

– Of course, specific modifications can be washed out. It is very difficult to guess, to guess half a year ahead, when the planning cycle begins, to foresee the availability of certain configurations. Of course, we deliver some components, including by air delivery, but this is not always possible. Therefore, there are deviations from plans in terms of configurations, but they are always available for models, a specific body or engine. Unless due to a sharp increase in demand for Jolion, the available equipment is washed out very much. But the company is making efforts to cover the deficit, including through imports.

– So you recently received a vehicle approval (OTTS) indicating the release in China?

– Yes. For two items, Jolion and Dargo, we are making up for the lack of local production through imports due to increased demand. This is done point by point.

— Is it really easier to bring ready-made machines than to assemble them in Russia by delivering components?

— There is a long stage of planning. For the assembly and delivery of components, it is very large, so at a particular moment – yes, it’s easier.

– But in relation to finished cars in recent years, there has also been a shortage in all markets. Or no longer?

— It is difficult to say about all markets. Yes, probably, there is still a shortage of components due to the shortage of some elements for production. But at any given moment, the company simply calculates what is best for it: to spend time, assemble and supply components, or produce a car, plus or minus, in the same configuration.

— You mentioned deliveries in a taxi. Are these significant amounts? Crossovers, even against the backdrop of a shortage of cars, do not look like an obvious choice for a taxi.

— The volume of sales in taxis this year amounted to about a thousand cars. For a taxi, of course, a crossover can be a little more expensive than a classic sedan. But in the current situation, in the absence of familiar cars on the market, companies are considering the possibility of buying cars and such a plan. This is still a one-volume vehicle, which provides quite good comfort for the passenger inside.

– Due to the new Tank brand, the cars of which will appear in 2023, you are replenishing the line of crossovers. No plans to sell sedans in Russia? For example, to fill the niche of Toyota Camry?

– If we are talking about the Tank brand, it is completely focused on SUVs. But Great Wall has many brands. The company, of course, is not able to cover everything at once, cannot do it quickly to saturate the market. As you know perfectly well, it takes time to adapt and prepare machines for the market. I admit that in the foreseeable future the company will introduce other brands. But for now, we are actually focusing on three: Haval, Great Wall and the new brand.

– So you don’t feel that the segment limits sales?

— We live within the plan set by the global office. At the time the current plan was created, there was no expectation that the company would come with other models. Maybe we will regret not covering all segments, all possible niches, but so far the company is following the plan. If there are resources and intentions, we will certainly expand our presence.

— Who are you competing with in Russia now? Or has competition ceased to be a relevant factor at all?

— Yes, now it is quite difficult to say who we are competing with. But even if we take the usual situation, this is a matter of positioning and attitude of the buyer. We do not always coincide with the main competitors precisely in terms of models. And there is no task to compete as such. We demonstrate the strengths of our products, their quality, attractive price, and offer good financial conditions.

– What about production now? Is it much lower than last year?

– Production adjusts to sales volumes. The plan that was set for the year is work in one shift, which is happening. We did a technological break, but a small one, three weeks. Routine reconfiguration of equipment. Now the plant produces exactly the volume that we planned. Production in the Tula region is about 140 vehicles per day.

Are you already planning for next year?

“We are in the process right now.

— Do you have an understanding of what to expect from the Russian market? How will the position of Haval on it change?

— We wanted to increase our presence, increase our share. But in a situation of uncertainty, planning is difficult. We hope that the potential of the model line and our brands will be realized. On the other hand, we are preparing for the fact that production and supply must be adapted to the conditions that will be on the market next year. We act carefully, but the company sets ambitious goals. We are already here, and there is no task to sit and look around. We also hope that the Tank brand will give a certain cumulative effect and increase interest in other Great Wall Motor brands.

— The geopolitical crisis and the general decline of the Russian market did not lead to the fact that the concern as a whole began to perceive it as less promising?

— To date, the company has not revised its plans in Russia, and the launch of a new brand confirms this. We have not stopped research work, we have not stopped certification issues, we are working on planned updates of current models, everything is going according to plan.

— Will your other brands appear in Russia in 2023?

— A lot of things are in the works, but since the situation is changing quite actively, the company has a restrained approach to communication of plans. This is not from the point of view of opportunities, namely the confirmation of plans. While we say that we stay, we work and we want to sell more and develop.

Interviewed by Olga Nikitina