Great Wall Motor Co Ltd

The 29th Chengdu International Automobile Exhibition was held from August 21 to 30 at the Western China International Expo City, reflecting the domestic auto industry's departure from years of price-driven involution and its full entry into a new cycle dominated by value competition, with technology popularization and scenario-based segmentation advancing in parallel. Leading independent brands such as BYD, Chery, and Great Wall Motor exhibited with full-brand, full-category product matrices occupying entire halls, while mainstream joint-venture brands including Lexus, Infiniti, Dongfeng Nissan, Yueda Kia, and Dongfeng Honda were collectively absent, and ultra-luxury brands like Rolls-Royce and Bentley also did not appear. Data from the China Passenger Car Association shows that in July 2026, the domestic retail penetration rate of new energy passenger vehicles climbed to 65.1 percent, breaking through the 60 percent threshold on a stable basis for the first time. At this year's show, core technologies previously reserved for million-yuan-level high-end models, such as 800-volt high-voltage fast charging, lidar-based intelligent driving, full-domain chassis control, and silicon carbide oil-cooled electric drive systems, were comprehensively extended to mainstream family models in the 200,000-yuan and 150,000-yuan classes. The new Lynk & Co 20 comes standard with an 800-volt high-voltage platform, 6C ultra-fast charging, a lidar intelligent driving system, and a new-generation 16-in-1 silicon carbide oil-cooled electric drive. Geely Auto launched the Xingrui L Plus and the Boyue L i-HEV lidar version, and SAIC Roewe's Jiayue 07 made its first public appearance. IM Motors officially released its new product strategy, NEXT 2028, built on three core proprietary technology pillars: the NEO three-electric architecture, an aviation-grade safety full-by-wire chassis, and the IM Claw intelligent agent. BYD's second-generation blade battery and full-domain God's Eye intelligent driving system achieved deployment in high-difficulty scenarios such as narrow-space parking and customized parking. Joint-venture brands showed insufficient new product momentum and a slowing transformation pace. The Freelander brand, jointly created by Chery and Jaguar Land Rover, made its debut, and a small number of joint-venture new products such as the Buick GL8 Lushang and SAIC Volkswagen's all-new ID.ERA appeared, but their overall presence and product strength struggled to compete with the intensive technology and product iterations of independent brands.

Hesai Group reported second-quarter 2026 revenue growth of 22% year over year to RMB 861 million, with gross margin of 40% and GAAP net income up 60% to RMB 71 million, marking a fifth consecutive quarter of GAAP profitability. Total LiDAR shipments exceeded 628,000 units, up nearly 80%, driven by ADAS and robotics demand, and the company announced design wins with Great Wall Motor and Volkswagen-related brands. Strategic growth initiatives generated RMB 45 million in revenue, prompting Hesai to raise its full-year 2026 SGI outlook to RMB 200 million to RMB 300 million, with management expecting the segment to reach about US$100 million in revenue and break even in 2027. For the third quarter, Hesai forecasts total revenue of RMB 1.1 billion to RMB 1.15 billion and LiDAR shipments of roughly 800,000 to 850,000 units, while reiterating its full-year shipment forecast of 3 million to 3.5 million units.

The China Association of Automobile Manufacturers disclosed that in July, China exported 1.043 million vehicles, up 0.6 percent month on month and 81.3 percent year on year, marking the second consecutive month above one million units. From January to July, cumulative auto exports reached 6.14 million units, up 66.8 percent year on year. In July, exports of new energy vehicles reached 553,000 units, up 1.5 times year on year, accounting for 53 percent of total exports and exceeding fuel vehicles for two consecutive months. Exports of traditional fuel vehicles stood at 490,000 units, up 40 percent year on year. Chen Shihua, deputy secretary general of the China Association of Automobile Manufacturers, said strong exports have effectively offset the downward pressure caused by insufficient domestic demand. People at automakers said the Middle East conflict and gasoline price fluctuations have stimulated overseas consumer interest in new energy vehicles, driving export growth over the past two months. Dai Jiahui, head of AlixPartners' automotive and industrial consulting business in Asia Pacific, expects China's auto exports may reach 10 million units this year, with main destinations being Europe and the Middle East.

ON Semiconductor reported second-quarter 2026 revenue of $1.6 billion, with non-GAAP gross margin of 39.3% and non-GAAP diluted earnings per share of $0.74, all above the midpoint of its guidance. The company now expects AI data center revenue to more than double in 2026, driven by stronger demand and broader customer wins, including an expanded role in the NVIDIA MGX ecosystem and two power supply platform wins with Great Wall. Automotive revenue was $781 million, down 2% sequentially but up 7% year-over-year, while industrial revenue rose 1% sequentially to $423 million. For the third quarter, ON Semiconductor guided revenue of $1.65 billion to $1.75 billion and non-GAAP gross margin of 40% to 42%, with non-GAAP earnings per share expected between $0.81 and $0.93.

Great Wall Motor released its July 2026 production and sales report, with July vehicle sales reaching 108,100 units, up 3.54% year-on-year. Among these, new energy vehicle sales in July totaled 34,651 units, and cumulative sales from January to July reached 179,300 units.

Great Wall Motor has obtained an H-share buyback mandate, allowing it to repurchase up to 10% of its total issued H-shares. The company announced on July 14 that shareholders at the 2025 annual general meeting approved granting directors a general H-share buyback mandate. The company plans to buy back H-shares on the open market from time to time, and the repurchased shares will be cancelled or held as treasury shares. In the first quarter of 2026, Great Wall Motor recorded revenue of 45.109 billion yuan and net profit attributable to the parent of 945 million yuan.

Autoliv has renewed its Global Strategic Cooperation Framework Agreement with Great Wall Motor, focusing on joint competitiveness, international expansion, and more integrated vehicle safety systems. The stock currently trades at $119.83, with a 1-day return of 3.1% and a 90-day return of 15.1%, though it has declined 6.1% over the past 30 days. The most followed valuation narrative pegs Autoliv's fair value at $132.18, suggesting the shares are 9.3% undervalued, supported by expectations of steady revenue expansion and margin improvement driven by heightened global focus on vehicle safety and stricter regulations. However, the outlook remains sensitive to global auto demand and tariff trends, which could pressure margins and earnings.

Autoliv and Great Wall Motor have signed a new Global Strategic Cooperation Framework Agreement, deepening their partnership in areas including global business growth, supply chain collaboration, localized operations, integrated safety systems, and sustainable development. The agreement was signed between Great Wall Motor and Autoliv (Shanghai) Management Co. Ltd., expanding their long-term relationship. This move underscores Autoliv's role as an embedded safety partner in Great Wall Motor's international expansion plans. The expanded cooperation is directionally positive for Autoliv's China and export exposure but does not materially change immediate swing factors such as global light vehicle production trends and pricing pressure from large automakers.