China’s Great Wall Motor (GWM) is planning its first vehicle manufacturing facility in Europe with the goal of reaching annual production capacity of up to 300,000 vehicles by 2029, as the automaker accelerates its push into overseas markets, Reuters reported on Wednesday, citing a senior company executive.
Parker Shi, president of GWM International, said the company is actively evaluating potential locations in several European countries, including Spain and Hungary, in what would be a major step in localising its production footprint outside Asia.
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The update marks the first time since 2023 that GWM has publicly detailed progress on its European manufacturing ambitions, after company president Mu Feng previously signalled early-stage site selection.
Shi said labour availability and logistics costs are key factors shaping the decision, as GWM would initially ship components from China for local assembly before deeper localisation. “All business plans must be workable; otherwise, it would be very difficult for GWM, as this is going to be a huge investment for a long term,” Shi told Reuters.
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The push for large-scale European output comes as price competition intensifies in China’s domestic auto market, pushing local manufacturers to diversify revenue sources abroad. GWM began operations at its Brazil plant in August and is also developing or operating factories in Uzbekistan, Russia, Thailand, Vietnam and Malaysia.
Rival Chinese automaker BYD is already constructing vehicle plants in Hungary and Turkey and is considering a third European factory in Spain, Reuters reported last month, underscoring the growing race among Chinese manufacturers to build local capacity in Europe amid shifting trade and regulatory conditions.
