Great Wall Motor to Build Major European Electric Vehicle Factory as Competition Intensifies

Great Wall Motor, a leading Chinese electric vehicle manufacturer, is actively searching for a site to construct one of Europe’s largest car factories. Spain and Hungary are under consideration alongside other European countries, as the company sets its sights on a local production output of 300000 vehicles per year. This facility would rank among the continent’s largest auto plants, notably exceeded only by Volkswagen’s Wolfsburg site which has a theoretical annual capacity of around 900000 vehicles and Nissan’s Sunderland plant, the largest in Britain, capable of up to 600000 vehicles per year.

Rising aggressive price competition in China has prompted domestic automakers to pursue expansion abroad. European markets offer an opportunity for growth, particularly as Chinese companies consistently undercut established brands. BYD, for example, has raised its sales from approximately 36000 to 138000 vehicles in the first ten months of the year. SAIC Motor, owner of the MG marque, has increased sales from 198000 to 250000 during the same period.

Great Wall Motor does not disclose specific sales data for Europe, but Parker Shi, president of Great Wall Motor International, has set an ambitious target to export one million vehicles globally by 2030. Of this total, 300000 cars are intended for the European market. According to Mr Shi, these plans underpin an accelerated European expansion strategy, reflecting the urgency to establish a significant local presence.

In the United Kingdom, the company currently offers the all-electric ORA 03 hatchback from £21000, the Haval Jolion Pro compact SUV for approximately £22000, and the POER300 pickup truck at around £31500. These pricing figures compare favourably with popular European alternatives such as the electric Mini Cooper and Vauxhall Corsa, which start at £28000 and £27000 respectively for electric variants.

The competitive pressure exerted by Chinese entrants has raised concerns among European policymakers about potential threats to domestic jobs and established brands, including Volkswagen and Renault. Chinese automakers have made substantial gains in electric vehicles thanks to lower production costs, often achieved with the support of considerable state aid from Beijing and local government entities in the form of concessional loans, incentives, and investment in charging infrastructure.

Faced with these developments, the European Union recently introduced tariffs on Chinese electric vehicle imports. In response, Chinese firms have accelerated their plans for local manufacturing, although compliance with EU rules of origin requires more than mere assembly of imported components. Mr Shi confirmed that Great Wall Motor continues to monitor EU policy adjustments, including emissions regulations intended to increase electric vehicle adoption. He acknowledged that establishing substantial manufacturing operations in Europe represents a significant long-term investment.