Haval outlines SA operating model after GWM takeover

23rd June 2017

By: Irma Venter

Creamer Media Senior Deputy Editor

     

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Haval Motors South Africa (Haval SA) has launched its first new vehicle in the local market since the company took over from Great Wall Motors South Africa (GWM SA).

The H2 sports utility vehicle (SUV) is set to compete with the Ford EcoSport and the Mazda CX3.

While the name ‘Haval’ may sound unfamiliar to South Africans, they will know the GWM badge. GWM vehicles have been on sale in South Africa for around ten years. Sales have reached more than 55 000 units.

GWM is the parent company of both the GWM and Haval brands, with Haval a premium SUV brand, and GWM the badge used for bakkies and entry-level SUVs.

GWM SA was an independent importer owned by a number of private investors, as well as JSE-listed transport logistics and mobility company Super Group.

GWM in China last year moved to take 100% control of the GWM brand in South Africa, after sales fell dramatically.

GWM SA sold 6 545 units in 2011, or an average of 545 units a month. However, sales reached 340 units in May 2014, 231 units in May 2015 and 100 units in May 2016.

The takeover by China’s head office is also part of a push to increase exports, with Haval targeting the Russian, Chilean and Australian markets.

Haval SA executive director Charles Zhao says Haval is China’s best-selling SUV brand.

Haval’s global sales totalled 580 000 units in 2016.

By 2020, notes Zhao, Haval aims to sell two-million SUVs a year.

GWM’s global sales reached nine-million units by the end of 2016.

Zhao says Haval SA will continue to sell GWM bakkies and small SUVs in South Africa, with the Haval brand to be added to the product stable.

The Haval H2 is to be joined by the H6 SUV, and the H6 coupé in September, with the H7L seven-seater and H9 large SUV to follow next year, says Haval SA national sales manager Tyrone Alberts.

The current Haval SA dealer network consists of 40 dealers, with not all GWM dealers authorised to sell Haval models.

“We have a different, higher standard for Haval dealers,” says Zhao.

Haval is currently available at three dealers in South Africa, with another 11 to follow.

Alberts would like to see combined GWM and Haval sales reach 1 000 units a month in South Africa, with the initial target for Haval being 150 units a month.

GWM dealers who spoke to Engineering News at the launch event at the Kyalami race track seemed truly positive about the product, but said they would take a wait-and-see approach to the support they would receive from the new company.

Local Assembly
Haval SA has a dealer in Namibia, but is also looking at expanding into the rest of Africa, says Alberts.

South Africa can act as an export hub for the rest of Africa, he believes.

Zhao adds that GWM is mulling completely knocked-down assembly in South Africa.

“We are busy with a feasibility study looking at assembly in South Africa,” says Alberts.


Zhao also notes that Haval SA aims to report monthly sales figures to the National Association of Automobile Manufacturers of South Africa (Naamsa).

“We are talking to them, and we may see it happening in the next three months or so.”

The H2
This vehicle appears to be a testimony to the rapid increase in the quality of Chinese-built vehicles.

The H2 uses a 1.5 ℓ turbo petrol engine, with 105 kW of power and 202 Nm of torque. The vehicle is available with a manual or automatic transmission.

Standard equipment includes rear-park distance control, 18 inch alloy wheels, keyless entry, electric windows and daytime running lights.

The vehicle received a five-star safety rating within the Chinese crash-test rating system.

Pricing starts at R244 900.

The H2 is backed by a five-year/100 000 km warranty, a five-year/60 000 km service plan, and a five-year/unlimited kilometres roadside assistance plan.

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

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