China’s GWM plans its first European car factory, targeting 300,000 annual vehicles by 2029, with Spain and Hungary as potential locations.
BAODING: China’s Great Wall Motor is targeting annual production of 300,000 vehicles in Europe by 2029 through its first car plant on the continent.
GWM teams are evaluating potential factory sites in Spain and Hungary, according to Parker Shi, president of GWM International.
This marks the first update on GWM’s European production ambitions since 2023 when the company began site selection.
Labour and logistics costs are among the chief concerns complicating the location decision.
The automaker will initially need to ship components to the target market for assembly.
GWM is also monitoring European Union industrial policies, including potential changes to investment climate and custom duties.
“All the business cases need to be workable,” Shi told Reuters at the company’s Baoding headquarters.
“Otherwise, it will be difficult for us because it’s going to be a huge investment for a long term.”
Chinese automakers are expanding overseas to escape a brutal domestic price war caused by overcapacity.
Their European expansion efforts face higher tariffs on electric vehicles, where Chinese brands are most competitive.
GWM must compete against established European manufacturers and aggressive Chinese rivals like BYD.
New car registrations in Europe under GWM’s EV brand Ora fell 41% to 3,706 vehicles last year despite record overseas sales of 453,141 vehicles.
The company has set a target of 1 million vehicles in annual overseas sales by 2030.
“That’s why we’re speeding up the European strategy,” Shi said, adding “Everything needs to speed up.”
Europe still offers great potential for Chinese brands across all powertrains, according to Shi.
GWM’s planned factory will build vehicles ranging from conventional engines to fully electric models.
The company aims to appeal to mainstream European consumers with new models like a multi-powertrain version of the Ora 5 compact SUV.
GWM plans to launch the Ora 5 in mid-2026 and has begun taking pre-orders for the all-electric version in China from 109,800 yuan.
Pricing for the European version has not yet been announced. – Reuters
