China’s Great Wall Motor (GWM) plans to establish its first automobile manufacturing facility in Europe, aiming to produce 300,000 vehicles annually in the region by 2029, according to Reuters.
Parker Shi, president of GWM International, stated that the company is evaluating multiple potential sites for the plant, including locations in Spain and Hungary.
The initiative is part of the company’s strategy to boost its lagging sales in the European market.
Shi made the remarks at GWM’s headquarters in Baoding, China. It represents the first official update on the company’s European manufacturing plans since 2023.
GWM president Mu Feng added that the company aims to expand its footprint in the region and has already initiated the process of assessing possible sites for the new plant.
Shi highlighted that labor and logistics costs are among several factors making site selection challenging, especially since the company initially ships components to Europe for assembly.
He also mentioned that the group is closely monitoring European Union (EU) industrial policies, including potential changes to investment rules and customs tariffs.
Chinese automakers are intensifying their international expansion as a strategic response to persistent price competition and overcapacity in the domestic market. However, efforts to establish a strong presence in Europe and other major markets have encountered obstacles in the form of elevated import tariffs on electric vehicles, a segment in which Chinese manufacturers are particularly prominent.
In Europe, GWM competes not only with well-established global brands but also with fellow Chinese manufacturers such as BYD.
GWM currently operates manufacturing facilities in Russia, Thailand, and Brazil. The automaker has set a goal of reaching annual overseas sales of one million vehicles by 2030.
The planned European plant is anticipated to manufacture a range of models, from internal combustion engine vehicles to fully battery-electric cars. To appeal to mass-market consumers in Europe, GWM is developing new offerings, including a multi-powertrain version of the Ora 5 compact SUV, slated for launch in mid-2026.
GWM has already begun accepting orders for the all-electric Ora 5 in China, with prices starting at ¥109,800. Pricing for the European market has yet to be revealed.
UPCOMING | 2026 Mercedes CLA to Launch Under $50K as All-Electric Sedan
