Great Wall Motor to build Ora 5 compact SUV in Bulgaria

MILAN, Oct 27 (Reuters) - China's Great Wall Motor 601633.SS will build its Ora 5 compact SUV in Bulgaria from early 2027 under a manufacturing agreement with a local partner, establishing its first manufacturing base in Europe as it seeks a comeback in the region.

Great Wall Motor said on Tuesday the Bulgarian plant would have a planned capacity of 50,000 vehicles a year, with production scheduled to start in the first quarter of next year. It did not disclose financial details of the agreement.

Chinese automakers are racing to establish manufacturing bases in Europe to support sales growth and reduce exposure to trade barriers, after the European Union imposed additional tariffs on China-built electric vehicles and discussed with Beijing an import cap on hybrid cars.

GWM's EVs imported from China are subject to a 20.7% EU anti-subsidy duty on top of the bloc's standard 10% car import tariff.

"We don't just want to sell cars to Europe: we want to become part of Europe," GWM Chief Technology Officer Nicole Wu said.

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The automaker aims to make 300,000 vehicles in Europe by 2029, a senior executive told Reuters last year. "Looking ahead, the group plans integrated industrial parks in Europe for vehicles and components," the company said in a statement.

GWM offers the Ora 5 in Europe with electric, hybrid and petrol powertrains. It did not specify on Tuesday which version it plans to manufacture at the Bulgarian plant.

The European comeback planned by GWM includes at least ten new and derivative models over the next two years, and an offering beyond EVs. It has operated a research and development centre in Munich, Germany, since 2021, working on local demand research, regulatory compliance and validation.

One of the first Chinese carmakers to enter Europe, GWM made a high-profile push centered on EVs earlier this decade but struggled to gain traction.

While Chinese rivals including BYD 002594.SZ, Chery 9973.HK and Leapmotor 9863.HK have posted rapid growth in the region, GWM's sales were negligible, falling nearly 30% in 2025 to just 3,500 cars.

It is targeting a 3% to 5% European market share by 2030.