Ora 5 will be produced in Europe. GWM opens its first factory and accelerates its expansion.
In the article:
- Great Wall Motor has decided to start car production in Europe.
- The first model to enter the market is the Ora 5.
- Local production is becoming crucial for Chinese brands operating in the European market.
GWM Ora 5 and a foothold in Europe
Until recently, Chinese brands tried to penetrate Europe mainly through imported electric vehicles. Now they are more often opting for a much more costly but also more effective approach: local production. The latest example is Great Wall Motor (GWM), which announced the launch of its first European manufacturing facility.
According to Reuters, production of the compact SUV Ora 5 will begin in Bulgaria starting in 2027. The factory will be established in partnership with the local company Bulgaria Automotive Industry, which already has a plant in Bahovica near the town of Lovetch and has previously collaborated with GWM. Per the manufacturer’s statements, the plant is expected to have an annual production capacity of 50,000 vehicles. Financial details of the project have not been disclosed.
Europe becoming increasingly difficult for importers
GWM’s decision aligns with a broader trend observed across the entire automotive industry. Chinese companies are accelerating their production investments in Europe following the European Union’s introduction of additional tariffs on electric vehicles manufactured in China. Reuters notes that GWM’s electric models imported from China are currently subject to an additional 20.7% anti-subsidy tariff on top of the standard 10% import duty.
Meanwhile, Brussels and Beijing are negotiating future rules for trading hybrid cars. Under such circumstances, local production becomes not only a way to reduce logistics costs but also a means of protecting against trade barriers. It is no coincidence that during the Tech Day conference in Milan, GWM’s technology director, Nicole Wu, emphasized: “We don’t just want to sell cars in Europe. We want to become part of Europe.”
Starting with the electric Ora 5
Production in Bulgaria will begin with the electric version of the Ora 5 model, one of the brand’s key vehicles in European markets. Over time, the range of locally produced cars is set to expand to include hybrid and gasoline variants as well as additional models.
As Nicole Wu explained, the initial approach will involve using the SKD (Semi Knocked Down) method, which involves assembling vehicles from partially assembled kits shipped from China. At the same time, the company plans to gradually localize parts supply from the start. “We will begin with SKD assembly, but parts supply will be localized from the very beginning,” said the company representative. This approach helps reduce investment costs while allowing for quicker commencement of production in the new market.
Returning to compete for European customers
The construction of the factory is not just an industrial project. It is also part of a broader strategy to rebuild the brand’s position in Europe. GWM was indeed one of the first Chinese automakers to enter the European market, but it has failed to achieve success on par with brands like BYD, Chery, or Leapmotor. According to Reuters, GWM’s sales in Europe dropped by nearly 30 percent in 2025 to just 3,500 vehicles.
The manufacturer hopes to reverse this trend, however. It plans to introduce at least ten new or upgraded models to the European market in the next two years. Since 2021, the company has also been operating a research and development center in Munich, responsible for analyzing local customer needs, ensuring compliance with European regulations, and testing new solutions — we covered this on Elektromobilni.pl.
Aggressive goals by the end of the decade
GWM’s plans go far beyond launching a single factory. As Reuters recalls, the company aims to produce 300,000 cars in Europe annually by 2029. During the Milan presentation, Nicole Wu emphasized that the firm is building a “fully localized ecosystem for Europe,” encompassing research and development, manufacturing, and collaboration with local partners. The sales targets are equally ambitious. By 2027, the manufacturer hopes to find 60,000 buyers in Europe, and by 2030, achieve a market share of 3 to 5 percent. Will this succeed? We’ll see!
Oskar Włostowski