The two main candidates to host the first European production plant of Chinese manufacturer Great Wall Motor are Spain and Hungary

Chinese manufacturer Great Wall Motor aims to become a significant player in the European market. To achieve this, the company’s strategy involves having the necessary infrastructure on the old continent to produce 300,000 vehicles a year locally before the end of this decade.

Great Wall is currently deciding on the final location for its first production plant in Europe and, among the many possible options, two candidates seem to stand apart from the rest: Spain and Hungary.

During a meeting at the company’s headquarters in the Chinese city of Baoding, in Hebei province, Parker Shi, the current chairman of Great Wall Motor International, explained to those present the difficulty of making this decision, as there are many variables to consider: labour costs, logistics, the political environment, or the evolution of industrial policies in Europe, to name just a few. Choosing the best and most viable option is vital for the company, since building a new production plant entails a multi-million-euro investment that must also be amortised over the long term.

Only one can remain

Over the past year the company has been ruling out options, which makes the final decision easier. For example, in 2023, when the first news about this project emerged, Germany was also among the options, particularly some regions in the east of the country. However, although Germany spoke out against the imposition of special tariffs by the European Union on electric vehicles imported from China, this candidacy has been completely ruled out for other reasons.

Likewise, another matter that has already been fully decided is the way in which Great Wall Motor will approach the start of vehicle production in Europe. The possibility of buying an disused plant to adapt it, an option that was initially considered, has also been completely ruled out. The company wants a completely new plant.

Great Wall Motor’s first production plant in Europe, whether it is ultimately located in Spain or Hungary, will assemble both electric and internal combustion vehicles intended for the European market. The company believes that, despite the boom in electric vehicles, Europe continues to offer significant opportunities for all propulsion technologies and, as a consequence, the new plant will cover the full spectrum.

One of the most anticipated models, which should boost sales, is the compact SUV Ora 05, which is expected to arrive in Europe in mid-2026, initially imported from China. This vehicle can already be reserved in the Chinese market, where it has a base price of 109,800 yuan – roughly 13,400 euros at current exchange rates. In any case, as has happened with all vehicles arriving on the continent from China, its price on the European market will be much higher. To give an idea, the Ora 3, a model one rung below in the Chinese manufacturer’s range, has a price in Europe of just over 30,000 euros.