Great Wall Motors (GWM), the largest SUV and pickup truck manufacturer in China, is scheduled to commence operations at its Brazilian factory in May 2025.
According to a report from the Brazilian newspaper Valor Economico, the company aims to produce up to 25,000 vehicles in its first year of operation.
This new facility will be GWM’s third manufacturing plant outside of China, adding to its existing plants in Russia and Thailand.
After entering the Brazilian market in 2021 by acquiring the manufacturing facilities of Mercedes-Benz, GWM has mainly operated as an importer until now.
In anticipation of launching local operations, GWM has begun recruiting for 100 positions and plans to create an additional 700 jobs next year in partnership with a local technical school.
The company is focused on maximizing local content in its Brazilian-made vehicles, taking advantage of the Mover tax incentive program, which provides tax breaks based on criteria such as domestic sourcing, investments in research and development, and reductions in pollutant emissions.
Ricardo Bastos, GWM Brazil’s director of institutional affairs, informed Valor that the incentives have led the brand to reevaluate its plans regarding which models to produce in Brazil.
The company initially planned to introduce the GWM Poer, a hybrid pickup designed to compete with Toyota’s Hilux. However, the focus has now shifted to the Haval H6, a hybrid SUV that has already been approved for the tax incentive program. This model has become popular in Brazil, with nearly 16,000 units sold between January and September this year.
GWM’s strategy also involves positioning its Brazilian factory as an export hub for other South American markets. While Brazilian regulations mandate a 40% localisation rate for domestically produced vehicles before export, GWM aims to exceed this, targeting 60% localisation by 2028.
“The factory has been licensed for a total capacity of 50,000 units per year,” Bastos said, indicating potential for future expansion.
The operations of the Brazilian plant are part of an initial investment plan projected at US$776 million by the end of next year. GWM expects this amount to increase to approximately US$2 billion by 2036.
Although not as widely recognized as its competitor BYD, GWM has consistently been ranked among China’s top 10 private companies since 2004 and operates in more than 60 countries globally.
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