GWM Picks Bulgaria for First European Plant, Ora 5 Assembly Starts in 2027

Great Wall Motor has ended months of speculation about where it would build cars in Europe. The Chinese group confirmed at its Tech Day event in Milan that its first European factory will sit in Bahovitsa, Bulgaria — not Spain or Hungary, the two countries widely tipped as frontrunners.

The site is a familiar one for GWM. The company set up an SKD assembly operation there back in 2012, making it the first Chinese automaker with a European footprint. That venture folded in 2016 after partner Litex Motors went bankrupt, and the buildings passed to Bulgarian Automotive Industry (BAI).

A Renovated Plant, a New Owner

BAI will keep ownership of the refurbished facility but hand operational control to GWM from 2027. BAI itself stays on as an independent contract manufacturer, building whatever volumes the two sides have agreed. Series assembly of the Ora 5, an electric compact SUV already sold in Europe as an import, is slated to kick off in the first quarter.

Anton Dontschew, who heads international business at BAI, framed the deal as an opening chapter rather than a one-off arrangement between the companies.

Key Numbers: 50,000 vehicles annual capacity at Bahovitsa · 300,000 European production target by 2029 · Ora 5 assembly begins Q1 2027

Capacity at Bahovitsa is planned at 50,000 cars a year. That is a long way from the 300,000 GWM wants to build annually on European soil by 2029, so more sites or major expansions will be needed down the road.

Why Local Production Matters

The math is straightforward. Brussels’ tariffs on Chinese EVs make imported cars expensive, and building inside the bloc sidesteps them entirely. GWM spent 2025 weighing locations, with Spain and Hungary both in the running before Bulgaria won out.

There is a supply-chain angle too. GWM CTO Nicole Wu said the plan starts with SKD kits but local sourcing of components will ramp up quickly. “We’ll start with SKD assembly, but supply of some parts will be localised from the very beginning,” she said in Milan.

• Site: Bahovitsa, Lovech Province — an existing automotive hub
• Operator: GWM takes over from 2027, BAI stays as contract manufacturer
• First model: Ora 5 electric compact SUV
• Capacity: 50,000 units per year initially

The Bulgarian government has not commented publicly on incentives tied to the project. For GWM, though, the move signals a shift from shipping cars into Europe to actually building them there — a step its rivals have been taking with increasing urgency.