Great Wall considers Spain or Hungary for European plant

Chinese automaker Great Wall Motor aims to produce 300,000 vehicles annually in Europe by 2029 and is scouting for potential locations for its first factory on the continent.

Gwm ora
Image: Ora

Great Wall is evaluating potential locations for its European manufacturing plant, with Spain and Hungary emerging as the leading candidates, Parker Shi, President of GWM International, told Reuters. However, Shi did not explicitly confirm whether the company had already narrowed its decision to these two countries or if other locations remained under consideration. Nonetheless, indications suggest that the final choice will be between Spain and Hungary.

During discussions at GWM’s headquarters in Baoding (Hebei Province), Shi elaborated that labour and logistics costs are among the “myriad considerations” complicating the selection of the final site. Politics also plays a pivotal role. The automaker is closely monitoring the European Union’s industrial policies, particularly shifts in the investment climate and tariffs, according to the report. “All the business cases need to be workable,” Shi is quoted as saying. “Otherwise, it will be difficult for us because it’s going to be a huge investment for a long term.”

When initial reports surfaced in 2023 about Great Wall’s search for a European plant location, the company also explored options in Germany. At the time, a senior European manager suggested that eastern German states could be potential candidates. However, this option is no longer under active consideration.

One key question now appears to be resolved. In 2023, Great Wall left open whether it would construct a new plant in Europe or acquire an existing facility. Shi’s remarks now indicate a clear preference for building a new plant from the ground up.

The new facility will produce both electric vehicles and internal combustion engine vehicles for the European market. Shi emphasised that Europe continues to offer significant potential for Chinese brands across all powertrain types. The planned GWM plant will manufacture vehicles spanning the entire spectrum, from conventional engines to fully electric models, he announced.

Great Wall has set an ambitious target to sell one million vehicles annually outside China by 2030. However, its sales in Europe have recently declined. Shi aims to reverse this trend through local production and the introduction of new models, stating that the company is “speeding up its European strategy.” The compact SUV Ora 05 is expected to launch in Europe around mid-2026—initially as a China import. On the domestic market, GWM has already begun accepting pre-orders for the model, with prices starting at 109,800 yuan, currently equivalent to 13,400 euros. The European pricing for the Ora 05 has not yet been announced. In Europe, the smaller Ora 03 is available starting at well over 30,000 euros.

reuters.com

This article was first published by Sebastian Schaal for electrive’ s German edition.

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