Report suggests that GWM's Brazilian factory will commence production on August 15th.
Great Wall Motor (GWM) is set to ramp up production at its Brazil plant, which was previously owned by Mercedes-Benz and was acquired by GWM in August 2021. The Chinese automaker announced its plans to start production on August 15, 2025, with an initial production capacity of 30,000 units per year, slated to increase to 50,000 units by 2028.
The plant's expansion comes as part of GWM's strategy to establish a foothold in Brazil's automotive market. The company aims to increase local content, which could potentially aid in tariff negotiations and integration into the Brazilian supply chain. In the initial year, GWM targets a low local procurement rate, but this is set to rise to approximately 35% by the second year of production.
The first model to be assembled in Brazil by GWM will be the Haval H6 SUV. The expansion is expected to create nearly 2,000 jobs locally, with the factory employing a total of 1,000 employees by the end of 2025, operating on double-shift operations.
Meanwhile, GWM's local peer, BYD, started production at its passenger vehicle plant in Brazil on July 1, with a first-phase annual production capacity of 150,000 new energy vehicles (NEVs). The first model to be produced at the BYD plant is the Seagull compact EV.
In the global arena, GWM has seen significant growth in overseas sales over the past few years, although the growth rate has slowed this year. In the first seven months of 2022, GWM sold 238,746 vehicles overseas, roughly flat compared to the same period last year. However, there was a 7.60% year-on-year increase in July, with GWM selling 41,088 vehicles overseas, up 2.55% month-on-month.
As part of its global expansion strategy, GWM is reported to be tapping the US market by partnering with Faraday Future. The details of this partnership are yet to be disclosed.
References:
- GWM to expand Brazil plant, aim for local content and growth
- Great Wall Motor to start production at Brazil plant in August
- Byd, a fellow automaker, has commenced production at its passenger vehicle plant in Brazil, focusing on new energy vehicles (NEVs).
- In addition to BYD, Great Wall Motor (GWM) is also vying for a significant presence in the Brazilian automotive market, with the production of electric vehicles (EVs) like the Haval H6 SUV.
- As GWM's sales of EVs overseas plateau this year, the company is considering finance partnerships, such as the one with Faraday Future, to penetrate the US automotive industry and transportation market more effectively.
- The expansion of GWM's production capacity in Brazil is not only intended for local market growth, but also to boost energy production and integration within the Brazilian supply chain.
- With the increase in production capacity at its Brazil plant, GWM aims to create employment opportunities, employing around 1,000 employees by the end of 2025 and creating nearly 2,000 jobs locally.
