Great Wall Motor Enters Partnership in Bulgarian Market for Its First European Production Base

Great Wall Motor (GWM) will produce the Ora 5 compact SUV in Bulgaria, starting in 2027, under a manufacturing agreement with a local partner. This will mark the Chinese automaker's first production base in Europe, Reuters reports.

Great Wall Motor announced yesterday that the Bulgarian plant will have a planned capacity of 50,000 vehicles per year, with production set to begin in the first quarter of next year. Financial details of the agreement have not been disclosed.

Chinese automakers are rushing to establish production bases in Europe to support sales growth and reduce exposure to trade barriers, following the European Union's imposition of additional tariffs on electric vehicles manufactured in China, alongside discussions with Beijing regarding limits on hybrid vehicle imports.

Currently, GWM electric vehicles imported from China are subject to the standard 10% tariff applied to automobile imports into the European Union, plus an additional 20.7% anti-subsidy duty.

"We don't just want to sell cars in Europe; we want to become part of Europe," stated GWM Chief Technology Officer Nicole Wu. Last year, a GWM executive stated that the Chinese manufacturer aims to produce 300,000 vehicles in Europe by 2029.

"Looking ahead, the group plans to develop integrated industrial parks in Europe, dedicated to vehicles and components," the company stated in a recent press release.

GWM currently sells the Ora 5 model in Europe with electric, hybrid, and gasoline powertrains. The company did not specify which of these versions would be manufactured at the plant in Bulgaria.

• GWM's plans for Europe: new models and an expanded offering beyond electric vehicles

GWM's plans for Europe include the launch of at least ten new models-or variants thereof-over the next two years, as well as the expansion of its product lineup beyond electric vehicles. Since 2021, GWM has operated a research and development center in Munich, Germany, which focuses on analyzing local demand, ensuring regulatory compliance, and validating products.

As one of the first Chinese automakers to enter the European market, GWM launched a major, electric-vehicle-focused offensive earlier this decade; however, it has struggled to gain a foothold. While Chinese rivals such as BYD, Chery, and Leapmotor have seen rapid growth in the region, GWM's sales have remained negligible-dropping by nearly 30% in 2025 to just 3,500 vehicles. Great Wall Motor has set a goal to reach a market share of 3%-5% in Europe by 2030.

• Geely scouting locations for a European plant

Chinese automaker Geely is evaluating several locations for a plant in Europe but has yet to reach a final decision regarding local production, according to sources cited by Reuters, as reported by Agerpres.

When asked whether the Chinese manufacturer would build a plant in the region, Li Chuanhai-vice president of Geely Auto Group, one of the brands under the Zhejiang Geely Holding Group-stated last month: "We haven't reached the 100% mark yet."

Discussions are ongoing between Geely and the new Polish government regarding the joint construction of a plant to produce electric vehicles in Poland; however, several officials previously told Reuters that they do not view Geely as an ideal partner.

"We have several options," Li Chuanhai said when asked about the progress of the talks, without providing further details.

Meanwhile, Nicolas Appelgren, head of European operations for the Lynk & Co brand, confirmed that Geely is considering multiple locations in the region. Lynk & Co-a brand within the Geely portfolio that currently sells only a hybrid model in Europe-launched a battery-electric vehicle in Italy this month and plans to manufacture its next battery-electric model in Europe.

Geely is the second-largest Chinese automaker, trailing only BYD. The Geely Group controls Volvo Cars, operates a joint venture with Renault, and holds stakes in Aston Martin and Mercedes-Benz.

• China Becomes Global Leader in Vehicle Sales

In 2025, Chinese automakers surpassed their Japanese counterparts in global vehicle sales for the first time, marking a major shift in the global automotive industry, according to a report by • Nikkei• cited by Xinhua in March.

Total global sales by Japanese automakers fell to approximately 25 million units last year, causing the country to lose its leading position for the first time since 2000. Meanwhile, Chinese automakers sold nearly 27 million units worldwide in 2025, securing the top spot globally.

According to the report, BYD overtook Ford (USA) to reach sixth place globally, while Geely surpassed Honda (Japan) to secure eighth place. Six Chinese automakers-including Chery, Changan Automobile, SAIC Motor, and Great Wall Motors-entered the global top 20, outnumbering the five Japanese manufacturers on the list.

In the electric vehicle (EV) segment, BYD surpassed Tesla, becoming the world's leading seller of electric vehicles last year.

Tang Jin, an automotive sector expert and analyst at the Japanese group Mizuho Bank, explained that China's rise to the top position represents more than just a change in rankings; it signals a restructuring of the global automotive industry, driven by China's successes in technology, profitability, and rapid progress in research and development. In his view, Japan must re-evaluate its strategies regarding electrification and its positioning in the global market, in response to growing competition.