Chinese Carmaker GWM Targets Major European Expansion by 2029

Great Wall Motor (GWM) is pursuing an ambitious plan to produce 300,000 vehicles annually in Europe by 2029 as it works to strengthen its position in a region where its sales have weakened. According to Parker Shi, president of GWM International, the company is currently evaluating several potential sites for its first European manufacturing facility, with Spain and Hungary among the leading candidates. His remarks, delivered at GWM’s headquarters in Baoding, mark the company’s first significant update on its European production strategy since 2023, when GWM leadership first indicated its intention to establish a plant in the region.

The newly disclosed production target reflects GWM’s commitment to expanding its presence despite substantial challenges. Shi noted that labor and logistics expenses are critical factors in deciding on a location, particularly because the company will initially ship components from abroad for assembly in Europe. He also emphasized the importance of monitoring the European Union’s evolving industrial policies, including changes to tariffs and investment regulations, which could influence the feasibility of such a large-scale, long-term investment. Shi stressed that any final plan must be economically sustainable given the substantial financial commitment required.

Chinese automakers, including GWM, are increasingly seeking overseas growth to counter the prolonged price competition in their domestic market, fueled by excess production capacity. Yet their international expansion efforts face obstacles, most notably the heightened tariffs imposed by Europe and other major markets on electric vehicles—an area where Chinese manufacturers have traditionally been strongest. In Europe, GWM must not only compete with established automakers but also contend with assertive Chinese rivals such as BYD, which is reportedly considering Spain for its next European plant.

GWM already operates factories in Russia, Thailand, and Brazil, but its European performance has lagged. Registrations of vehicles under its Ora electric brand fell 41% last year to 3,706 units, despite the company achieving record global sales of over 453,000 vehicles abroad. With a broader goal of selling 1 million vehicles overseas annually by 2030, Shi underscored the need to accelerate the company’s European strategy. He reaffirmed that Europe remains a promising market for Chinese manufacturers across all types of powertrains. GWM plans for its prospective plant to produce vehicles ranging from traditional combustion-engine models to fully electric options and intends to attract mainstream European consumers with new offerings, including a multi-powertrain version of the Ora 5 SUV slated for release in mid-2026.