— The next increase in the recycling fee is currently being actively discussed, including by the Ministry of Industry and Trade. How can the prices of Haval cars change in this environment? How will this affect low-margin mass-produced cars like the Haval Jolion? — Probably for our company the...
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Wey 07 will be sold in Russia.” Interview with the head of the Russian office of Haval China Great Wall officially confirms the launch of two new Wey models on the Russian market 05/06/2024, 13:19
— The next increase in the recycling fee is currently being actively discussed, including by the Ministry of Industry and Trade. How can the prices of Haval cars change in this environment? How will this affect low-margin mass-produced cars like the Haval Jolion?
— Probably for our company the situation may become more complicated on the one hand, and a little simpler on the other. We still have domestic production and in this case the increase in the recycling fee should not affect the market price.
We import some of the vehicles because we cannot produce the entire model range here. Of course, we have no choice but to compensate for this fee by increasing the retail price.
Therefore, we will have to officially publish it at the market price.
On the other hand, probably an important factor is the principle of price positioning.
We try to adjust prices according to the market. And if we see that the car is outside the price segment we need, for example, competitors follow a different policy, then we will be forced not to regulate the price, but to position the models so that they are sold appropriately. With the plan we set in the beginning.
— Is there an opportunity to reduce car prices within the country by switching to domestic car components? You have recently started engine production, maybe the idea of producing or purchasing domestic generators, radiators, gearboxes etc. will arise?
— This issue is quite complicated because we have obligations under SPIC, which was signed some time ago. Now the situation is changing, unfortunately, not everything depends on us – much depends on the availability of the material base of suppliers that are available in the country today.
What we were able to do was the promised engine factory. Our work continues in other areas as well. The company’s attitude is to fulfill its commitments. The only question is when we can do this.
— Is there any difficulty in reviewing the points of SPIC (of course they are confidential and different for everyone) according to the obligations you have given now?
“We are currently discussing SPIC with the government because, for various reasons, some actions cannot be implemented as planned. Still, we may be trying to fulfill our obligations distributed over time, but we are trying to solve the tasks we promised.
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Haweil Motor Russian Andrey Akifev Executive Director
Haval
— So, did I understand correctly that it is not possible to comply with the points system currently offered by the Ministry of Industry and Trade?
— The points system depends on the level of localization, which implies the need to equip cars with certain locally produced components and assemblies. To do this, we need the environment that exists before the deadlines we undertake for ourselves. Now unfortunately it has become a little more difficult.
Many suppliers have departed from or changed their policies,
Therefore, it takes a little more time to implement plans.
For example, if we take an engine plant that we promised to put into operation, we put it into operation later, but we did it anyway. Therefore, we will fulfill our obligations, they will be distributed only according to time, and not according to the schedule we set at the beginning. These issues are currently being discussed with the government.
— How successful was the Ora brand in the Russian market? How do you evaluate the pace of introduction of electric cars in Russia?
— When we look at the open statistics for 2023, we see that the demand is quite high. In my opinion, nearly 13.5 thousand electric cars and nearly 10 thousand hybrids were sold. This is a significant increase, more than eightfold compared to the previous year.
This made it possible to understand public interest. We see that it exists.
The electric car and hybrid market will develop. It may be changed a bit, but I think it will continue to improve.
The Ora brand was launched late last year. Now, as we approach the summer season, demand is increasing, we are investing more in the promotion of electric cars and we are seeing a reaction from both dealers and buyers. We are not talking about high numbers, because we initially made very conservative plans to understand whether there would be demand.
If we talk about the Wey brand, we started selling hybrid cars at the end of February. We now see that demand is growing quite actively, so we trust them. This hybrid differs from what is currently mostly on the Russian market; We have a parallel hybrid, so it will take time for consumers to get used to this type of car. Still, we and the dealers are working to ensure that the car arouses interest among buyers. We are quite optimistic.
— During an international test drive for the press at the Great Wall test site, is it planned to bring the ORA 07 liftback to Russia?
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— We decided to see how the Ora 03 hatchback would go on sale. Of course, it would be a bit risky to launch two electric models at a time when we do not yet know the market very well.
— But such a hybrid crossover 07 under the Wey brand was also shown in China, it is very similar to the Lixang L9, which is sold very well by gray dealers in Russia. It would seem that logic suggests that a competitor with service and warranty is needed in this segment?
– Yes, there will be competition. We will launch two more models within the Wey model group by the end of the year.
Therefore, we expect the interest in this brand to increase with the addition of models. The Wey model range in Russia will consist of three models by the end of the year.
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— Understanding that there will be official service and, accordingly, warranty service, which brings certain obligations and expenses, can we expect your crossover to be more expensive than the same Lixang L9, which is sold for plus or minus 7 in its segment? 8 million rubles?
— If we look at Lixang, its cost is most likely 7-8 million rubles due to unofficial imports. However, if you import a car officially, its price should be higher. Hybrids are a new technology for our market and take some getting used to.
We are making progress on pricing.
Advantages of the Wey brand: Firstly, the fact that our hybrids are modern provides extensive advantages in terms of vehicle ownership, and secondly, we provide full warranty and post-warranty service.
We have a large spare parts warehouse, it has already been created, dealers are being trained and their training will continue, we provide full after-sales service for these complex vehicles. I think this is an important advantage because hybrid technologies are different from the technologies we are used to.
— As for your two main brands, Haval and Tank, how will they develop in the Russian market? We saw many new products at the Beijing Auto Show. What will definitely be sold in Russia this year or in 2025?
— H9 SUV spotted at the Haval stand in Beijing. This car will literally be in Russia after a while. We expect good results from this because the H9 model is well known and in demand in Russia.
The new model will retain all the advantages of a frame SUV. On the other hand, as it develops, it will also attract the attention of buyers.
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We also announced the Russian prices of the new H3 model, it is already on sale. It is also worth noting that this model is the first model in the series that will bring together Haval vehicles that are more suitable for off-road use. They will create a new model series that will exist in the new dealer network.
If we talk about new Tank products for the Russian market, this is the Tank 700 Hi4T SUV. In the very near future, it will be released on the Russian market in two versions: a three-liter gasoline engine and a hybrid. The tank model range will continue to evolve.
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— Haval has many hybrid versions in China, almost all models have them. Will there be hybrid versions for some budget options like Haval Jolion in Russia? Or does this have no meaning for the Russian market?
You are absolutely right; These technologies will not only remain in the Tank as the flagship SUV, but will also be included in the Haval models. It will happen a little later.
We are preparing our dealer network so that hybrids will also be sold under the Haval brand.
— You mentioned the new line earlier, and there is a feeling that the company itself is undergoing a transformation.
When you look at it as a whole, we have five brands and they combine quite harmoniously. We have an air line. Models that satisfy this line will remain as they are. They will not undergo any fundamental changes. As I said before, we are adding new models, they will be different from the urban crossovers that make up the current model range.
In order for the dealers to focus, it was decided to separate them into a separate model range and create a new dealer network. Thus, urban crossovers will remain in the existing model line-up, and the new series will consist of cars with more utilitarian features, increased off-road capabilities, some with a frame structure like the H9. In this way, the Haval Pro dealer network will be created and the existing dealer network will be called Haval City.
Haval hybrid models will be sold in Russia, and the brand itself will acquire two different directions: the sale of mass segment models for the city and more brutal crossovers and frame SUVs of the Haval Pro series. How will the Tank, Ora, Haval and Wey brands change – said Andrey Akifiev, general director of Haval Motor Rus, in an interview with socialbites.ca.
Source: Gazeta
