The Chinese automaker Great Wall Motors (GWM) has announced plans to build a new manufacturing facility in Brazil’s Espírito Santo state with an annual production capacity of 200,000 vehicles. The announcement was made on February 24th during a meeting between GWM executives and Espírito Santo state government officials.
The new factory will be located in the Barra do Riacho area of the Aracruz Industrial Park, covering approximately 1.7 million square meters. According to Sina, Rogério Salume, Secretary of Development for Espírito Santo state, said the facility will feature a complete production line including stamping, welding, painting, and assembly operations, making it GWM’s most advanced factory in the Americas.
The project is expected to create between 1,500 and 3,500 jobs during the construction phase, primarily in the construction sector. Once operational, the plant could generate up to 10,000 direct and indirect jobs, boosting the regional economy and supporting the development of the automotive supply chain and service industries.
This announcement follows a January visit to China by Espírito Santo’s Vice Governor Ricardo Ferraço, who met with GWM executives and signed an investment commitment agreement. Ferraço noted that GWM has a 10 billion Brazilian reais (approximately 2 billion USD) investment plan for Brazil, while the state government is focused on vertical integration of the industrial chain. Ricardo Bastos, GWM’s Director of Institutional Affairs, emphasized that the decision to build in Espírito Santo resulted from a nationwide evaluation of potential locations.
GWM’s localized production in Brazil began in August 2021 when the company acquired Mercedes-Benz’s factory in Iracemápolis, São Paulo state, through an asset transaction. This initial facility, which officially began operations in August 2025, is GWM’s third-largest global manufacturing center with an initial annual capacity of 50,000 vehicles. The plant can produce hybrid, plug-in hybrid, and diesel-powered vehicles on the same production line, with initial locally-produced models including the Haval H6 GT, Haval H9, and the 2.4T GWM Cannon (Poer) pickup truck.
Beyond GWM, other leading Chinese automakers including BYD and Chery have established production bases in Brazil. In 2025, Brazil’s automotive market exceeded 2.5 million units in both production and sales, making it a standout performer among emerging markets and a key destination for Chinese automotive companies’ overseas expansion.
According to data from K.Lume Consulting and Bright Consulting quoted by Sina, Chinese vehicles accounted for 11% of total passenger car sales in Brazil from January to August 2025. Chinese brands are projected to sell more than 260,000 vehicles in Brazil for the full year 2025, an achievement considering that brands like BYD and GWM entered the Brazilian market less than four years ago.
