China’s Great Wall Motor (GWM) is planning to build its first car manufacturing plant in Europe, with a goal of producing 300,000 vehicles a year in the region by 2029, reported Reuters, citing a company executive.
Parker Shi, president of GWM International, said the company is assessing several locations for the facility, including sites in Spain and Hungary.
The move comes as part of efforts to revive weaker sales in Europe.
Shi was speaking at GWM’s headquarters in Baoding, in China’s Hebei province.
Shi’s remarks mark the first formal update on the privately owned group’s European manufacturing plans since 2023.
GWM president Mu Feng said the company intended to step up its presence in the region and had begun the process of evaluating potential plant locations.
Shi noted that labour and logistics expenses are among a range of factors complicating the choice of site, particularly as the carmaker would initially transport components into Europe for assembly.
He added that the group is closely tracking European Union (EU) industrial policy, including any shifts in investment conditions and customs duties.
Shi said: "All the business cases need to be workable. Otherwise, it will be difficult for us because it's going to be a huge investment for a long term."
Shi has maintained an international focus since he became part of the company in 2002.
Chinese vehicle manufacturers have increasingly turned to international expansion in response to a sustained price battle in their home market, driven by excess capacity.
Their attempts to grow in Europe and other key markets, however, have been met by higher import duties on electric cars, where Chinese producers have been especially active.
In Europe, GWM faces competition both from established global brands and from Chinese peers such as BYD.
BYD is considering Spain as its preferred location for a third European site, in addition to existing plants in Hungary and Turkey.
GWM already runs overseas manufacturing operations in Russia, Thailand and Brazil.
The company has set a target of selling a million vehicles a year outside China by 2030.
Shi said he sees continued scope for Chinese manufacturers in Europe across different technologies.
The proposed European factory is expected to produce models ranging from internal combustion engine vehicles to full battery-electric cars.
To target mass-market buyers in Europe, GWM is preparing new products including a multi-powertrain version of the Ora 5 compact sport utility vehicle, which it plans to introduce in mid-2026.
The company has started taking orders for the all-electric Ora 5 in China, with prices from 109,800 yuan ($15,480).
Pricing for the European market has not yet been disclosed.
