GWM Chair warns Chinese auto still lags global OEMs

Great Wall Motor Chairman Wei Jianjun told employees at a recent company annual meeting that Chinese automakers—including GWM itself—still have “a very large gap” to close with the world’s leading manufacturers. His remarks, later circulated widely by local media, came as China’s auto industry reported record production and sales of 34.4 million vehicles in 2025, its 17th consecutive year as the world’s largest car market.

Wei said that ‘legacy’ automakers with a global footprint—for example, those from Germany, Japan, South Korea and the US, still retain substantial advantages in manufacturing experience and technical depth. As a model for handling quality issues, the chairman cited Toyota  “Toyota has never stopped issuing recalls, large and small […] Yet consumers continue to hold it in very high regard, because when problems arise, Toyota never deflects blame. It takes ownership, and often proactively fixes issues and informs customers before they’ve even noticed anything is wrong.”

He also turned his attention to China’s price war. Deep discounting, he warned, amounts to “slow-motion suicide”: essentially arguing that sustainable quality cannot survive cuts of CN¥100,000 (US$13,800) per vehicle. At the same time, China’s domestic market is running at near-critical overcapacity, with production capacity of 48 million units set against demand of roughly 25 million in 2024, leaving utilisation well below healthy levels. 

Geely announced last year it would stop constructing new manufacturing facilities precisely because of these overcapacity concerns. However, rumours are swirling that the automotive conglomerate is among the top three bidders—alongside BYD and VinFast—to purchase a former Nissan-Mercedes-Benz plant in Mexico. BYD, for its part, has no plans to slow down its global manufacturing expansion, with two new plants in Europe nearing launch and a third in Brazil that opened last year. GWM itself is also reportedly a competing bidder.

This has added significant pressure to local companies’ existing plans for overseas expansion. On this matter, Wei said Chinese brands remain at an early stage, relying too heavily on price competitiveness rather than building durable brand value. He rated the industry’s international progress at roughly three out of ten, and warned that US restrictions on battery material sourcing and EU tariffs on Chinese electric vehicles make a price-led export strategy increasingly fragile.

Of course, not all is bleak for Chinese automotive—far from it. The industry has achieved independent control over what is commonly referred to as the ‘three electrics’; that is, motors, batteries and electronic control systems. Its new energy vehicle (NEV) supply chain is widely regarded as the most advanced and comprehensive in the world. On those metrics, and particularly in battery materials, China dominates its global rivals. 

Where the deficits remain most acute, Wei suggested, is in profit margins, brand equity and the resilience of individual businesses. Some Chinese automakers are rapidly growing their sales volumes while posting widening losses, sustained by capital injections rather than actual commercial viability. If these injections stop, he warned, the consequences could include vehicles left stranded mid-production—a risk that would harm consumers and damage confidence in the wider industry.

Despite Wei’s self-deprecation, GWM remains one of China’s largest and most profitable non-state-backed automakers. The company reported global sales of 1.32 million vehicles in 2025, including 506,100 overseas deliveries—the first time it has exceeded 500,000 units internationally. Revenue reached CN¥222.79bn (US$30.77bn) and net profit CN¥9.91bn (US$1.37bn). New energy vehicles accounted for around 30% of its total deliveries, with the remainder made up of petrol and hybrid models.