Abstract:
According to Reuters, Great Wall Motors announced that it has reached a manufacturing agreement with a local partner in Bulgaria and plans to start local production of the Euler 5 compact SUV in the first quarter of 2027. The factory has a planned annual production capacity of 50,000 vehicles. The parties did not disclose financial details of the agreement.
Great Wall Motors' partner Bulgaria Automotive Industry operates a factory in Bahovicha, near Lovich, Bulgaria, and has previously cooperated with Great Wall Motors. The local production will start with the pure electric version of the Euler 5, and will later be expanded to other powered versions and models. Euler 5 offers three power options in Europe: pure electric, hybrid and fuel.
Wu Huixiao, Chief Technology Officer of Great Wall Motors, said that the semi-knocked down assembly (SKD) method will be used in the initial stage of the project, that is, partially assembled vehicle kits will be imported, and the complete vehicle assembly will be completed locally. At the same time, local procurement of some parts will be achieved from the beginning of production. Great Wall Motor hopes to integrate into the European market through local R&D, manufacturing and long-term investment, she said at the company's technology day event in Milan.
Chinese car companies are accelerating the deployment of production in Europe to support sales growth and reduce the impact of trade barriers. According to reports, Great Wall Motors' electric vehicles exported from China to the EU are currently required to pay an additional 20.7% countervailing duty in addition to the 10% conventional vehicle import tariff.
This production plan is also part of Great Wall Motors' return to the European market. The company plans to launch at least 10 new models and derivative models in the next two years, and expand its product range beyond pure electric models. Since 2021, Great Wall Motors has been operating an R&D center in Munich, Germany, to carry out European market demand research, regulatory compliance and verification work.
Great Wall Motors previously launched a market offensive in Europe focusing on electric vehicles, but its sales performance did not meet expectations. In 2025, its European sales will drop by nearly 30% year-on-year to only about 3,500 vehicles. The company has set its European sales target at 60,000 vehicles in 2027, and plans to capture 3% to 5% of the European market by 2030. A Great Wall Motors executive told Reuters last year that the company aims to produce 300,000 vehicles in Europe by 2029.
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