Great Wall Motors’ European Ambitions Face High-Stakes Gamble

Great Wall Motor’s European Expansion Plans

Great Wall Motor has announced plans to establish its first European plant by 2029, aiming for an annual production volume of around 300,000 vehicles. According to Parker Shi, the president of GWM International, the company is exploring sites in Spain, Hungary, and several other countries. This expansion is expected to revive the brand’s sales in Europe, which have noticeably weakened in recent years.

The choice of location is complicated by high labor and logistics costs; initially, GWM will need to supply parts from China, increasing the project’s cost. The automaker is also closely monitoring EU industrial policy, considering changing investment conditions and possible tariff barriers. Shi emphasized that the launch of European production must be economically justified, as otherwise, the long-term investments would be too risky.

Facing Challenges and Competition

Chinese brands are expanding overseas to offset the pressure of a domestic price war, yet in Europe, they face rising tariffs on electric vehicles and stiff competition, particularly from BYD. Reports indicate that BYD is also considering Spain for constructing another plant. Currently, Great Wall Motor operates manufacturing facilities abroad in Russia, Thailand, and Brazil. The European project is set to be a crucial step towards achieving the target of 1 million overseas sales by 2030.