China’s Great Wall Motor Eyes 300,000 Annual Output in First European Plant
A major Chinese automaker has revealed ambitious plans to establish its first manufacturing base in Europe, aiming to ramp up local production capacity significantly by the end of the decade to revitalize its performance in the region, according to a recent report.
According to a Reuters exclusive report published on November 26, Great Wall Motor is targeting an annual production output of 300,000 vehicles in Europe by 2029. The company is currently in the process of scouting locations for the new facility, with Spain and Hungary identified as potential sites.
In an interview at the company's headquarters, Parker Shi, president of GWM International, indicated that the selection process involves complex considerations regarding labor and logistics costs. Since the manufacturer will initially need to ship components to the target market for assembly, financial viability is a primary concern. The company is also closely monitoring the European Union's industrial policies and potential changes in customs duties to ensure the long-term sustainability of the investment.
This expansion strategy serves as a response to the intense price wars and overcapacity issues plaguing the domestic market in China. By localizing production, the automaker hopes to better navigate the European landscape, where Chinese brands face rising tariffs on electric vehicles. In this competitive environment, the company must contend with both entrenched legacy manufacturers and aggressive domestic peers such as BYD, which acts as a key rival in the region.
To reverse a recent decline in regional sales—where registrations for its Ora brand saw a significant drop—the planned European factory will produce vehicles ranging from conventional internal combustion engines to fully electric models. The automaker aims to capture mainstream market share with upcoming models like the Ora 5, a compact SUV slated for a European launch in mid-2026. In the domestic market, presales for the electric version of this model have begun at RMB 109,800 yuan (US$15,480).
The establishment of European production capabilities is a critical step in the company's broader objective to achieve over one million annual overseas sales by 2030, accelerating its globalization strategy across all powertrains.