Great Wall eyes Germany, Hungary, Czech Republic for first Europe plant

MUNICH -- Great Wall Motor is mulling whether to locate its first European plant in Germany, Hungary or the Czech Republic, Xiangjun Meng, president of China automaker's European operations, told Automotive News Europe sister publication Automobilwoche.

"We are currently examining where and why experienced Asian automakers have established their European sites. The eastern German states could be a possible choice," Meng said. "Alternatively, Hungary or the Czech Republic are also possibilities."

Before it withdrew its interest, Great Wall was a front-runner to take over a former Nissan plant in Barcelona that the Japanese automaker closed in 2021.

Meng said eastern Germany's strengths include its "good labor and energy costs."

"Other factors that are decisive for us are market volume or suppliers in the region,” Meng added.

Great Wall has not said whether it intends to build a new European factory or take over an existing plant. The automaker has received "some purchase offers" for sites where existing manufacturers want to stop production, Meng said, adding that Great Wall's European production could start as early as "the next few years."

Great Wall cars are currently exported to Europe from China.

The automaker’s electric-focused Ora brand has been available in Germany since the beginning of the year, but in the first four months there were just 268 registrations.

"Great Wall is a private company and therefore faces no expectations or pressure from the [Chinese] government. This means we are more pragmatic than many other Chinese manufacturers and did not set specific sales targets in the initial phase," Meng said.

The executive added that the automaker intends to take its time in Europe to build up its brands, which includes the premium-focused Wey marque. Therefore, it is emphasizing environmental protection, sustainability and customer satisfaction in Europe.

In Germany there are currently 150 Great Wall dealers, Meng said.

"By the end of the year, we will have quite a few more dealers in the network," Thiemo Jahnke, the automaker’s brand and marketing director told Automobilwoche.