Great Wall Motors South Africa (GWM SA) has dropped the price on many of its vehicles by between R5 000 and R30 000.

COO Warren Olson says this move is not linked to declining sales at the Chinese importer, but rather Super Group taking a controlling interest in the company and the greater efficiencies achieved as a result of this move.

GWM SA announced in March that JSE-listed transport logistics and mobility company Super Group had acquired 50.1% of its business for an undisclosed amount.

“GWM is intensely aware that it is a value-for-money brand – and proud of it. We were in a position to go against market trends and effect a cost reduction, which has great price positioning benefits for the brand,” says Olson.

He believes GWM SA will gain a competitive advantage with this move, given current tough economic circumstances.

GWM SA recorded sales of 349 units in July, compared with 529 in October last year, and an average of 700 units a month in 2012.

The Steed line-up continues to be a best-seller for the company, particularly the 2.2 l models.

The M4 mini sports-utility vehicle (SUV) has also been garnering support among consumers.

In its more than seven years in the local market, GWM SA has sold more than 50 000 new vehicles.

Olson attributes the sales decline to a combination of factors, “of which pricing is but one”.

“As with the Korean brands before us, there is always a period of transition when a brand moves out of the entry-level segment and into the mainstream. GWM is now in that phase.

“The products have evolved, particularly during the past two years. When the sales decline started, we had an ageing product line-up – Steed and H5 – and when the economic woes hit South Africa earlier this year, we launched new, more upmarket products that took us into new segments for the first time.”

It takes time for a new brand to establish its presence in these new segments, explains Olson.

“But the future looks very bright. The Super Group investment came as the result of in-depth studies into the future potential of GWM SA, and included negotiations in China.”

Olson says a successful company such as Super Group would not have invested in GWM SA if it wasn’t a viable venture.

Looking into the future of the brand, Olson says “there is a lot happening”.

“In the last quarter of this year, we will introduce a revitalised and restructured Steed [pickup] line-up, which will include new entry-level diesel engines, refined double-cabs and the all-new leisure-market Steed 6.

“Following the Steed introductions, GWM will offer one of the broadest and most complete pick-up line-ups in the South African market.

“Also on the way are entry-level versions of the H5 and H6 [SUVs] that will really set the cat among the pigeons.

“Looking further ahead, GWM’s upmarket ambitions with the Haval SUV brand are well publicised, and we are currently in the early stages of South African product viability studies.”

In short, says Olson, there is a big emphasis on bakkies and SUVs.