Great Wall Motor Launches First Latin America Plant in Brazil

Brazilian President Luiz Lula da Silva officially inaugurated the first production plant of Chinese automaker Great Wall Motor (GWM) in Iracemapolis, São Paulo. The facility, formerly owned by Mercedes-Benz, marks GWM’s first manufacturing presence in Latin America. Lula used the occasion to deliver a clear message to both domestic and foreign automakers: companies that want to leave may do so, while those interested in entering the Brazilian market are welcome.

“Count on the Brazilian government to develop here, to manufacture and sell your products, and for other companies to establish themselves and generate employment. Whoever wants to leave, leave. Whoever wants to come, we welcome you with open arms,” Lula said during the ceremony, addressing GWM CEO Mu Feng.

The inauguration comes amid heightened tensions in Brazil’s automotive sector, particularly around Chinese rival BYD, which requested tax exemptions to import vehicles and components. BYD’s Camaçari plant faced scrutiny following allegations of labor violations involving Chinese workers, which the company attributed to a subcontractor. The dispute led other major automakers, including Stellantis, Volkswagen, GM, and Toyota, to petition Lula to deny BYD’s request for revised import exemptions. The government granted BYD a six-month grace period for importing while maintaining the broader exemption rules.

GWM has committed an initial investment of US$74 million for the Iracemápolis plant, with plans to scale up total investments to US$1 billion over the next decade. The facility will assemble three models in its first phase: the Great Wall Poer pickup, the Haval H6 SUV, and the Wey 07 crossover. All vehicles will include electrified powertrains, such as conventional and plug-in hybrid variants. The plant will also produce a 1.5-L turbocharged flex-fuel engine compatible with ethanol, aligning with local market preferences.

Production capacity is set at 50,000 units per year initially, with potential expansion to 200,000. The facility currently employs 600 workers, projected to grow to 1,000 by the end of 2025 and to 2,000 once regional exports commence. GWM plans to export vehicles to Latin American markets, including Mexico.

The inauguration also included the announcement of a 15,000 m² Research and Development center adjacent to the plant. The R&D hub will focus on adapting GWM’s global platforms and developing technologies for electrified vehicles tailored to the Brazilian market.

The company operates under a “part-by-part” assembly system, a more complex method than traditional SKD or CKD processes, and is progressively integrating local suppliers. Currently, 18 of the more than 110 registered component suppliers are actively participating, including BASF, Bosch, Continental, DuPont, and Goodyear. GWM was recently recognized as an “excellent place to work” by Great Place to Work.