China's 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, known as GWM, said in a statement 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.

Local partner Bulgaria Automotive Industry operates a plant in Bahovitsa, near the town of Lovech, and has cooperated with GWM in the past.

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.

LOCAL PRODUCTION TO START WITH EV VERSION OF ORA 5

The automaker aims to make 300,000 vehicles in Europe by 2029, a senior executive told Reuters last year.

"From local R&D to local manufacturing, we are building a full localized ecosystem for Europe, and aim to grow together with European customers and partners through long-term investment and collaboration," Wu said on Tuesday during the firm's Tech Day in Milan, Italy.

GWM offers the Ora 5 in Europe with electric, hybrid and petrol powertrains. In Bulgaria, production will start with the EV version of the Ora 5, but the company will later expand production to other powertrains and models.

"We'll start with SKD assembly but supply of some parts will be localised from the very beginning," Wu said.

SKD refers to 'semi-knocked-down' assembly, where automakers import partially assembled kits and turn them into finished vehicles.

GWM TARGETS 60,000 EUROPEAN CAR SALES NEXT YEAR

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

Its European comeback includes at least 10 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.

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 vehicles.

The company is aiming for a 3% to 5% European market share by 2030. For 2027, it targets sales in Europe of 60,000 vehicles.