China’s Great Wall Motor (GWM) is planning its first full-vehicle manufacturing plant in Europe, with a target annual output of 300,000 cars by 2029, according to the company’s international president, Parker Shi. The company is evaluating potential sites in Spain and Hungary, as reported by IT-home.
Shi said in an interview that labour and logistics costs are key factors in GWM’s location decision, as critical components will need to be shipped into Europe for assembly in the initial stages. The company is also watching potential shifts in European Union industrial policy, including investment conditions and tariff regimes.
This announcement marks the first update on GWM’s European production ambitions since 2023; at that time, its then-president, Mu Feng, stated that the company had begun site selection for a European facility. GWM currently operates overseas production plants in Russia, Thailand and Brazil, but none yet in Western Europe.
GWM’s move comes as it faces sliding sales in Europe for its EV brand Ora, which registered just 3,706 new vehicles in the region last year, a 41% drop. By contrast, the company’s global overseas deliveries hit a record 453,141 units last year. The European factory push is part of GWM’s broader goal to reach 1 million overseas sales annually by 2030.
According to Shi, the planned European plant will build a full spectrum of powertrains, from internal combustion engines to hybrids and battery-electric vehicles, reflecting GWM’s intent to meet diverse European market demand. Part of the strategy involves launching more mainstream models to appeal to European consumers, including a compact SUV under the ORA brand, the planned Ora 5, slated for European introduction in mid-2026.
GWM’s European expansion is also framed in the context of BYD’s expansion in Europe. BYD is reportedly planning a third European plant, with Spain as a frontrunner, joining existing operations in Hungary and Turkey. Analysts suggest that BYD’s local production plans could accelerate competition in key EU markets, prompting GWM to expedite its own European factory plans.
By establishing local production, GWM aims to reduce import-related costs and exposure to tariffs while positioning itself competitively against both European incumbents and growing Chinese rivals such as BYD.
