Great Wall Considers European Expansion: Seeking Plant for Car Manufacturing in Germany and Eastern Europe

Credit: GWM

Great Wall, the prominent Chinese automaker, has expressed its interest in establishing car manufacturing operations in Europe, with a focus on Germany and other countries in Eastern Europe. The company is currently in the early stages of evaluating various concepts for a European factory.

Xiangjun Meng, President of Great Wall Motor Europe, stated, “The eastern German states could be potential candidates.” He further emphasized the need to analyze the strategic decisions made by experienced Asian manufacturers regarding their European locations. Hungary and the Czech Republic are also being considered as potential options for the European factory.

China’s leading battery manufacturer, CATL, has already established a presence in Germany. However, Hungary has become a favored destination for Chinese investments in e-mobility. CATL is actively constructing a facility in Debrecen, while Eve Energy, a Chinese cell manufacturer and BMW partner, has also chosen the same location. Additionally, BMW is in the process of setting up a dedicated electric car plant in Debrecen for the New Class series, while Mercedes-Benz is already manufacturing the EQB in Kecskemét and making preparations to adapt the plant for other electric vehicle platforms. Rumors suggest that Samsung SDI is considering plans for cylindrical cell production in Hungary, attracting several Asian battery suppliers. SK On and BYD are among the companies already manufacturing battery cells and electric buses in Hungary, respectively.

Apart from determining the location, Great Wall is also deliberating whether to build a new factory or acquire an existing plant for its European operations. According to Meng, the company has received multiple offers to purchase plants from existing manufacturers looking to cease production. The report does not disclose specific names or locations, leaving the possibility open that the Opel plant in Eisenach, Thuringia, owned by Stellantis, could be among the options.

Great Wall has introduced its BEV compact model, Ora Funky Cat, and the PHEV SUV Wey Coffee 01 in Europe. As of the end of April, 268 Great Wall vehicles had been registered in Germany. Meng highlighted that as a private company, Great Wall does not face government pressures, making them more pragmatic compared to other Chinese manufacturers. In the initial phase, the company has refrained from setting specific sales targets.

In addition to its European plans, Great Wall intends to commence electric car production in Thailand next year. The company already operates a manufacturing facility there and is finalizing plans for a new battery pack assembly plant. Moreover, reports indicate that Great Wall is preparing to establish an exclusive plant in Brazil in the coming year, dedicated solely to producing electrified vehicles.

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