How Investors May Respond To Great Wall Motor (SEHK:2333) Expanding Dual Inverter Partnership With BorgWarner

Simply Wall St
  • On October 30, 2025, BorgWarner announced it will expand its partnership with Great Wall Motor by launching two additional electrified propulsion projects utilizing advanced dual inverter technology, with mass production targeted for 2026.
  • This collaboration provides Great Wall Motor with greater flexibility and efficiency in hybrid and plug-in hybrid development, supporting regulatory compliance and quicker product iterations for the competitive Chinese automotive market.
  • We'll explore how accelerating innovation in hybrid powertrain technology could influence Great Wall Motor's overall investment outlook.

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What Is Great Wall Motor's Investment Narrative?

Anyone considering Great Wall Motor today has to believe in the company’s ability to turn electrification advances into stronger profits and competitive edge. News of the expanded BorgWarner partnership should make this catalyst more realistic, as it positions Great Wall Motor to push out new hybrid and plug-in hybrid models faster and more efficiently. This could help the company offset recent earnings pressure, even though revenue has been steadily rising year-on-year, net income and earnings per share have declined. Operational execution, cost management, and timely product launches will likely matter more in the short term as competition in the Chinese auto market intensifies. The main risk remains margin erosion from price wars and efficiency challenges, even as new tech capability arrives. However, with shares still trading at a steep discount to analyst fair value and catalysts evolving, the risk-reward balance may be shifting.
But while rapid tech adoption holds promise, profitability pressures remain a fact investors should be aware of.

Despite retreating, Great Wall Motor's shares might still be trading 43% above their fair value. Discover the potential downside here.

Exploring Other Perspectives

SEHK:2333 Community Fair Values as at Nov 2025
Three different fair value estimates from the Simply Wall St Community range from HK$10.19 up to HK$26.77 per share. This variety highlights how opinions vary on the company’s potential, especially as fast-changing hybrid technology brings both opportunity and heightened margin pressure. Consider how your outlook aligns with these views.

Explore 3 other fair value estimates on Great Wall Motor - why the stock might be worth 33% less than the current price!

Build Your Own Great Wall Motor Narrative

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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