GWM’s Strategy: Why Premium SUVs with Higher Prices May Succeed in the Australian Market

GWM is paving the way for a wider range of high-end SUVs as it significantly enhances its vehicle offerings.

“Currently, our leading model is the Tank 500. We aim to expand these markets effectively and increase their volume,” stated Charles Zhao, managing director of GWM Australia and New Zealand, during an interview with CarExpert.

“In addition to product development, we’re also prioritizing customer satisfaction.”

“In the next year, we won’t introduce significantly pricier vehicles in Australia; however, the possibility for high-end models remains open. Vehicles such as the 700 and 800 won’t be high-volume sellers.”

“Yet, if we continue to experience steady growth in the market, improve our share, and enhance customer satisfaction, we might consider these models.”

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“In the short term, our focus will be on the Tank 300 and Tank 500, rather than the 400 or 700. This timeframe extends through the next year.”

The company has previously noted that should the business case for the Tank 700 be established, it could take 6 to 9 months to introduce it to the market.

While products from Great Wall Motor’s premium Wey brand have been excluded from Australia, the newer Tank brand is progressing towards the high-end market.

The luxurious Tank 800 has yet to be unveiled but was previewed as a concept in 2021. It will serve as the flagship for the Tank brand, marketed in Australia under the GWM name.

The Tank 400 and Tank 700 are already available in China, both exhibiting a distinctive angular design that sets them apart from the more traditional Tank 500 with its chrome accents, and the boxy Tank 300.

“A pertinent question is how much are customers willing to pay for a GWM vehicle,” remarked Steve Maciver, head of marketing and communications for GWM Australia and New Zealand.

“In recent years, the average selling price of a GWM vehicle has risen from approximately $23,000 in 2020 to over $40,000 in a relatively short period.”

“This increasing price trend indicates that customers are beginning to appreciate what we offer, valuing the product, and it’s essential for us to support that with the right offerings.”

“We are careful about introducing more expensive models. If a product has proven demand in Australia, we are more than willing to explore it.”

“Price is important, but regardless of the price, value remains a crucial factor for any car brand. For us, it is fundamental to our mission.”

“We can offer higher-end products in terms of presentation and pricing, but the value must still resonate with consumers.”

“Whether it’s a Jolion priced at $25k, or another Tank at $90k-$95k, if consumers recognize the value, the exact price point becomes less significant, though some products may push those boundaries.”

The priciest GWM model currently available in Australia is the Tank 500 Ultra Hybrid, which retails for $73,990 drive-away.

A plug-in hybrid variant is expected to debut in 2025, likely at an even higher price point.

If the Tank 700 and Tank 800 arrive, they are expected to be priced even higher.

This year, the plug-in hybrid Tank 700 was launched in China, featuring a robust 265kW/560Nm turbocharged 3.0-liter V6 engine combined with a 120kW/400Nm electric motor and nine-speed automatic transmission, supported by a 37.1kWh ternary lithium battery.

The total system output is an impressive 385kW and 800Nm, with electric-only range estimated at 90km according to the WLTC cycle.

The five-seat SUV has dimensions of 5090mm in length, 2061mm width, and 1952mm height, built on a 3000mm wheelbase.

For comparison, the Toyota LandCruiser 300 Series measures 5015mm in length, 2000mm in width, and 1950mm in height, with a 2850mm wheelbase.

The wading depth measures at 900mm, increasing to 970mm with the optional air springs.

Positioned between the smaller Tank 300 and the larger Tank 500 in price within its home market, the more budget-friendly Tank 400 is also available.

It measures 4985mm long, 1960mm wide, and 1905mm tall, with a 2850mm wheelbase.

This model is only available with a plug-in hybrid powertrain in China, utilizing a turbocharged 2.0-liter four-cylinder engine.

The engine generates 180kW and 380Nm, combined with a 120kW/400Nm electric motor, yielding total outputs of 300kW and 750Nm.

It is equipped with a nine-speed automatic transmission and a 37.1kWh ternary lithium battery.

This powertrain setup is shared with the Tank 500.

MORE: 2024 GWM Tank 700 review: Quick drive