12:46 26-11-2025

GWM weighs Spain and Hungary for its first European factory

China’s Great Wall Motor is accelerating its push into Europe and weighing sites in Spain and Hungary for its first factory on the continent. The company targets volumes of up to 300,000 vehicles a year by 2029, seeking to strengthen its footing amid slowing sales and mounting competition. GWM’s international division says the choice of country is complicated by logistics, labor costs, and the specifics of the EU’s customs regime. At launch, some components will still be shipped from China, leaving the project particularly exposed to EU tariffs and industrial measures.

GWM’s interest in Europe is easy to understand: a price war is raging at home, and pressure from rivals such as BYD remains intense. Sales of the Ora brand’s electric cars in Europe fell 41% last year, even as the company’s global exports hit a record 453,000 vehicles.

The new plant is intended to change the equation. GWM plans to produce models with a range of powertrains—from traditional combustion engines to full electric. One of the key entries will be a multi-energy version of the compact SUV Ora 5, slated for a European debut in mid-2026.

For European buyers, local manufacturing could bring prices down and expand the selection of Chinese-built cars. With interest in 2025 model-year vehicles rising, this could intensify competition and speed up market renewal. The move looks well judged: demand in Europe is there, and local assembly could be the crucial step in winning the trust of mainstream customers.