China's Great Wall Launches Brazil Car Plant, Aims for Second Site

Great Wall Motor Expands Ambitions in Brazil with New Factory and Future Plans

Great Wall Motor Co., a prominent Chinese automaker, has taken a significant step in its expansion strategy by opening its first factory in Brazil. This facility, located in Iracemápolis, São Paulo, marks the beginning of a larger plan to establish a strong presence in South America's largest economy. The plant was officially opened on August 15, four years after Great Wall acquired it from Daimler AG. It is set to produce three key models: the Haval H6 and H9 sport utility vehicles, as well as the Power P30 pickup truck.

The current capacity of the Iracemápolis plant is 50,000 vehicles per year. However, GWM International Chief Executive Officer Parker Shi has outlined ambitious goals for the company’s sales in Brazil. The target is to sell between 250,000 and 300,000 cars annually, including both locally produced and imported vehicles. This indicates that Great Wall is not just aiming to enter the Brazilian market but to become a major player in the region.

Great Wall has already begun exploring options for a second factory, engaging in discussions with several states, including Santa Catarina, Paraná, São Paulo, and Espírito Santo. Ricardo Bastos, director of institutional affairs at GWM Brasil, mentioned that the company is considering both expanding the existing facility and building a new one from scratch. A final decision on the second plant is expected to be made by mid-2026.

This potential second plant could serve as a production hub for a new range of vehicles designed to fill a gap in Great Wall’s lineup. Currently, most cars in Brazil are priced around 150,000 reais ($27,700), while Great Wall’s models are priced above 200,000 reais. To remain competitive, the company plans to introduce more affordable options, such as an SUV smaller than the H6 and a compact pickup truck.

“We need to have competitive products in this segment, below 200,000 reais,” said Bastos. He emphasized that the new vehicle lineup will not be limited to just one or two models but could be expanded to other countries where Great Wall has manufacturing facilities. Brazil, he added, has served as a valuable laboratory for the brand, offering positive experiences with dealers and local operations.

The Iracemápolis plant is part of a larger investment plan by Great Wall in Brazil, totaling 10 billion reais. Of this, 4 billion reais will be invested by 2026, with the remaining 6 billion reais allocated by 2032. The second phase of investments could focus on various areas, including the supply chain, heavy vehicles, and the assembly of battery packs. This move is critical for increasing the level of component localization, which would allow Great Wall to meet the threshold for exporting Brazilian-made cars to other Mercosur countries like Argentina and Uruguay.

During the inauguration ceremony, GWM’s CEO, Mu Feng, made his first visit to Brazil, alongside President Luiz Inacio Lula da Silva. The event also saw the announcement of the creation of Great Wall’s first Research and Development Center in South America. This center will employ over 60 technicians and engineers, focusing on flex-fuel technology and adapting global vehicles to Brazilian driving conditions.

Bastos highlighted the importance of taking good care of consumers and maintaining a single-price policy. He emphasized that the company aims to serve customers effectively through its network in a healthy manner.

Looking ahead, Great Wall expects to sell 36,000 vehicles in Brazil in 2025, representing a 23% increase compared to 2024. This forecast surpasses the earlier estimate of 31,000 units for the year. As the company continues to expand its operations in Brazil, it is clear that Great Wall Motor is committed to making a lasting impact on the South American automotive market.