Automotive News Europe — 2025-11-26
Automotive Industry
China’s Great Wall Motor is targeting annual production of 300,000 vehicles in Europe by 2029, where it is scouting locations for its first car plant in a battle to revive flagging regional sales, a company executive said.
The move toward localized production follows the automaker’s October announcement that it would launch at least seven new models or derivatives aimed at key volume segments in Europe in a “first wave,” beginning in mid-2026.
Great Wall’s plans for a factory follow similar moves by BYD, which is building plants in Hungary and Turkey, and Xpeng, which will have models aimed at Europe made by contract manufacturer Magna Steyr in Graz, Austria. Xpeng also wants to add its own factory in Europe.
Great Wall teams are evaluating factory sites in Spain and Hungary, among other countries, Parker Shi, president of GWM International, told Reuters at the company’s headquarters here in the northern province of Hebei.
He was delivering the first update on the privately owned automaker’s ambitions for European production since 2023, when its president, Mu Feng, said the company had big plans for the region and had begun site selection for a plant.
Reuters is reporting the annual European production target of 300,000 for the first time.
Great Wall’s model offensive in Europe will include entry-level combustion-engine cars, full hybrids, plug-in hybrids and full-electric vehicles, the automaker said.
Ora 5 will be the first new launch in Europe
The first major model in the new lineup will be the Ora 5 compact SUV, unveiled at this month’s Guangzhou auto show.
The European variant is expected to come to market in the middle of next year. The company aims to appeal to volume consumers in Europe with multipowertrain versions.
The automaker has already begun taking preorders in China for the full-electric version of the Ora 5, which starts at 109,800 yuan ($15,480). Europe pricing has not been announced.
Labor and logistics costs are among the myriad considerations complicating the choice of location for the plant, as Great Wall will initially need to ship components to the target market for assembly, Shi said this week.
The automaker is also monitoring the European Union’s industrial policies, with an eye to changes in the investment climate and custom duties.
“All the business cases need to be workable,” said Shi, who has kept an international focus since joining the automaker in 2002. “Otherwise, it will be difficult for us because it’s going to be a huge investment for the long term.”
Chinese automakers seek local output to escape tariffs
Chinese automakers are increasingly looking to expand overseas to escape a brutal, prolonged price war triggered by domestic overcapacity.
However, their efforts to boost sales in Europe and other major auto markets have been hampered by higher tariffs on battery-electric vehicles, a segment in which Chinese brands are most competitive.
In Europe specifically, Great Wall needs to take market share from entrenched incumbents and aggressive Chinese rivals such as BYD.
Reuters has reported that BYD considers Spain the top candidate for a third European plant, besides manufacturing facilities in Hungary and Turkey. Great Wall currently operates overseas plants in Russia, Thailand and Brazil.
The automaker’s new-car registrations in Europe slipped 23 percent to 3,214 vehicles through 10 months, according to market researcher Dataforce.
With the company having set a target of 1 million vehicles in overseas sales annually by 2030, up from more than 450,000 last year, Shi said, “That is why we are speeding up the European strategy.” He added, “Everything needs to speed up.”
Europe still has great potential for Chinese brands across all powertrains, he said, and Great Wall’s planned factory will build vehicles across the spectrum from conventional engine to full-electric cars.