China’s Great Wall Motor (GWM) is aiming to produce 300,000 vehicles annually in Europe by 2029, part of a broader effort to escape the pressures of domestic overcapacity and fierce price competition. The company is scouting locations for its first European plant—Spain and Hungary among the contenders—reflecting a larger pattern of Chinese automakers, like BYD and Xpeng, seeking to establish local production in key markets.

GWM’s strategy is not just about expansion but about contending with entrenched European manufacturers and tariff barriers while navigating labour and logistics costs, as well as European industrial policies.

Their model rollout, led by the Ora 5 compact SUV, spans combustion engines, hybrids, plug-in hybrids, and full-electric vehicles, highlighting the company’s effort to hedge across technological and regulatory landscapes.

Underlying this push is a classic capitalist dilemma: overproduction at home drives firms abroad, where they confront new markets, competitors, and structural constraints.

Despite declining European sales, GWM projects 1 million overseas vehicles by 2030, betting that local assembly, multi-powertrain offerings, and market diversification can sustain profitability within a highly competitive global auto industry.

GWM’s European sales fell 23% over ten months, but the company aims for 1 million overseas vehicle sales by 2030, up from 450,000 last year. The new European plant will support production across all powertrains to tap the region’s market potential.