GWM Expands into Europe, Investing €2 Billion in Battery Gigafactories
Chinese automaker Great Wall Motors (GWM) is making significant strides in its global expansion by venturing into the European market. The privately owned company, founded in 1984, has become one of China’s largest original equipment manufacturers (OEMs), with sales reaching 1.28 million in 2021. GWM’s expansion efforts began two years ago when it established its European headquarters in Munich, Germany, which now houses approximately 300 employees responsible for research and development, sales, and management.
To further strengthen its presence in Europe, GWM recently appointed Csaba Gacsó to enhance cooperation with its suppliers and invest in the supply chain. Gacsó, who previously managed logistics operations for Stellantis, will focus on growing GWM’s vehicle logistics team across the continent. He explained that GWM’s strategy involves the introduction of its electric vehicle (EV) subsidiary, GWM ORA, which currently offers two models: the GWM ORA Funky Cat and the soon-to-be-released GWM ORA Funky Cat GT. Additionally, GWM’s Wey brand features four hybrid models, two of which will soon be introduced in Europe. Gacsó emphasized that while the ORA models are fully electric, the Wey SUVs are plug-in hybrids, considering the current limitations of certain European markets and their charging infrastructure.
Nevertheless, Gacsó acknowledges the challenges ahead, including a lack of charging infrastructure and limited ro-ro (roll-on/roll-off) capacity. He explained that securing storage at ports is proving to be a sensitive issue during the market launch, and geopolitical tensions, such as the situation between Russia and Ukraine, could exacerbate the situation. To overcome these obstacles, Gacsó plans to implement digital solutions, including planning and tracking tools and artificial intelligence, to enhance visibility and transparency in the logistics process.
Furthermore, GWM will rely on its distribution partners across Europe to support its expansion efforts. Gacsó highlighted the collaboration between GWM’s sales enabling team, headquartered in China, and a growing logistics team to facilitate vehicle distribution. The ORA and Wey models produced in China are currently being sold in various countries, including the UK, Ireland, Israel, Germany, and Sweden. Gacsó mentioned that the transportation of these vehicles involves a combination of ro-ro and container shipping methods.
In conclusion, GWM’s expansion into Europe marks a significant milestone in its global ambitions. With a strong focus on EVs through its ORA and Wey brands, the company is poised to capitalize on the growing demand for electric vehicles. By investing €2 billion in battery gigafactories and strategically collaborating with suppliers and distribution partners, GWM aims to strengthen its position in the European market. Although challenges such as a lack of charging infrastructure and limited ro-ro capacity persist, GWM remains committed to finding innovative solutions and embracing digital technologies to navigate these obstacles successfully.
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