GWM maps first European car plant with 300,000-unit target by 2029

China’s GWM aims for Europe’s first plant

GWM is planning its first European manufacturing plant, targeting an annual output of 300,000 vehicles by 2029. This move is part of GWM’s effort to revive weaker sales in the European market.

Parker Shi, president of GWM International, told Reuters the team is evaluating sites in Spain and Hungary, with labor and logistics costs among the top factors.

European factory plans resume after 2023

Shi’s remarks are the first formal update since 2023, when President Mu Feng said GWM had begun site selection for a European plant.

The planned factory is meant to strengthen GWM’s presence in Europe. The company plans to produce a wide range of vehicles from conventional engines to fully electric models to appeal to diverse buyers.

Facing sliding EV sales in Europe

ORA’s European registrations fell 41% in 2024 to 3,706 vehicles (JATO, via Reuters), while GWM’s 2024 overseas sales hit a record 453,141 units (company data).

The European plant is designed to counter these falling numbers. Shi emphasized that “everything needs to speed up” to achieve the company’s goals in the European market quickly and efficiently, according to Reuters.

Expanding overseas to escape price wars

Chinese automakers, such as GWM, are expanding internationally to escape domestic price wars caused by overcapacity. Intense local competition has made overseas growth a priority for survival and long-term profits.

The European factory will help GWM compete in new markets. Producing vehicles locally will also allow the company to reduce shipping costs and avoid higher import tariffs in the region.

Targeting one million overseas sales

GWM aims to sell one million vehicles annually outside China by 2030. Parker Shi said that Europe is a key market in this strategy and a major focus for the company’s expansion, according to Reuters.

The company sees strong potential for Chinese brands across all powertrains. This includes conventional engines, hybrids, and fully electric vehicles, catering to the diverse needs of European buyers.

Site selection considerations

Shi said that labor and logistics costs are the top concerns for selecting a factory site, according to CNC. Components will need to be shipped to Europe for assembly during the early stages, which adds complexity to the planning process.

GWM is also watching EU industrial policies, including tariffs and investment conditions. Every business case must be workable, as this is a long-term investment that requires careful execution.

Competition from Chinese rivals

In Europe, GWM faces competition from other Chinese automakers such as BYD. Reuters reports BYD is considering Spain as the frontrunner for a third European plant, adding pressure on rivals to move quickly.

Local production by competitors may accelerate the challenge of capturing market share. GWM hopes its new plant will help the company remain competitive against both European incumbents and other Chinese brands.

Overseas operations already in place

GWM currently has factories outside China in Russia, Thailand, and Brazil. GWM’s Brazilian plant in Iracemápolis commenced production in August 2025, joining its overseas plants in Russia and Thailand.

These overseas operations give GWM experience in handling international markets. Europe will be its first full-vehicle manufacturing site on the continent, marking a major step in the company’s global expansion.

Targeting mainstream consumers

The European plant will produce vehicles designed to appeal to mainstream buyers. Reuters reports a multi-powertrain ORA 5 compact SUV is planned for Europe in mid-2026.

In China, ORA 5 pre-orders start from 109,800 yuan ($15,480 at the cited rate), with European pricing to be announced.

Powertrain diversity is key

GWM plans to produce cars in Europe with a full range of powertrains. This includes conventional engines, hybrids, and fully electric vehicles, catering to the diverse needs of a wide range of consumers.

The company aims to offer products that appeal to a diverse range of European buyers. This strategy reflects GWM’s intention to adapt to local market demand and compete effectively against other manufacturers.

Speeding up European strategy

Shi told Reuters that “everything needs to speed up” to reach the European production target of 300,000 vehicles annually. The goal is to recover lost sales and increase the company’s market share in Europe quickly.

Europe still holds potential for Chinese automakers. GWM wants to capture this potential while responding to rival expansions like those planned by BYD in key EU markets.

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Observing EU industrial policies

GWM is closely monitoring potential changes in EU regulations. CNC reports that the company tracks tariffs, customs duties, and investment conditions that could affect profitability in its European operations.

Shifts in industrial policy could directly impact the factory’s long-term performance. GWM wants to ensure the European investment remains sustainable while staying competitive in the market.

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This slideshow was made with AI assistance and human editing.