GWM's Brazilian Factory: A Strategic Move in South America’s SUV Market

GWM's Entry into the Brazilian Market

Great Wall Motors (GWM), known as China’s largest SUV manufacturer, is gearing up to commence operations at its Brazilian factory in May. This facility aims to produce up to 25,000 vehicles in the first year and is positioned as GWM's third manufacturing plant outside China, following similar establishments in Russia and Thailand.

Job Creation and Local Sourcing Strategy

In preparation for its launch, GWM has initiated a recruitment campaign targeting 100 positions, with plans to further generate 700 jobs next year through collaboration with a local technical school. The company is focused on maximizing local content in its vehicles under Brazil’s Mover tax incentive program, which promotes domestic sourcing and R&D investments among other criteria.

Haval H6: The Focus Model

Initially, GWM considered producing the hybrid GWM Power pickup truck to compete with Toyota's Hilux. However, the company has shifted its strategy to prioritize the Haval H6, a popular hybrid sports SUV, planned for production under the tax incentive programme. The Haval H6 has already sold nearly 16,000 units in Brazil this year.

Ambitions Beyond Brazil

GWM also aims to use its Brazilian facility to serve as an export hub for other South American countries. The company intends to exceed Brazilian regulations requiring a 40% localization rate for export, targeting 60% by 2028. With an initial investment plan estimated at US$776 million by year’s end and projections reaching approximately US$2 billion by 2036, GWM is making substantial commitments to its Brazilian operations.

GWM’s Global Standing

Despite being less known than BYD, GWM has carved a niche among China’s top private companies since 2004 and maintains a presence in over 60 countries worldwide. The new factory signals GWM’s ambitions to challenge established players like Toyota and Mercedes-Benz in the South American market.