Anindita Chatterjee
Great Wall Motors (GWM), China’s leading manufacturer of SUVs and pickup trucks, is poised to make its mark in Brazil as it gears up to open a new factory in May 2025. With exciting plans to produce the Haval H6, a hybrid sports SUV, the company is not just expanding its global footprint but also creating jobs and fostering local production.
Investment in Brazil’s Automotive Future
GWM’s Brazilian plant will represent the company’s third manufacturing facility outside of China, joining existing sites in Russia and Thailand. The factory is set to operate from a site formerly owned by Mercedes-Benz, which had been largely inactive since its closure in early 2021. This transition marks a significant revival in the local automotive industry.
According to reports from the Brazilian newspaper Valor Economico, GWM plans to produce up to 25,000 vehicles in its first operational year. This ambitious goal highlights the company’s commitment to the Brazilian market, where it officially entered in 2021.
Job Creation and Local Partnerships
In a bid to support the local economy, GWM has initiated a recruitment campaign alongside plans to create 700 additional jobs next year. Currently, the company is looking to fill 100 roles—70 for the factory and 30 for administrative positions based in São Paulo.
Ricardo Bastos, GWM Brazil’s director of institutional affairs, stated that while some new hires may have experience from their time at Mercedes, prior automotive experience is not necessary. The first batch of employees will play crucial roles in production management and will undergo training at the nearby Senai technical school in Iracemápolis, which was established during Mercedes’ time in the region.
The revival of the factory is seen as a positive development by the local community. Residents of Iracemápolis are welcoming new opportunities and the economic uplift that comes with GWM’s return to the area.
Tax Incentives Driving Production Strategy
A key factor influencing GWM’s production strategy is Brazil’s Mover tax incentive program. This initiative offers tax breaks for automotive companies based on their commitment to local sourcing, research and development, and efforts to reduce pollutant emissions. By utilizing these incentives, GWM plans to nationalize its production by building vehicles from the ground up, rather than relying on importing pre-assembled kits from China.
This strategic shift promises to streamline operations and enhance the company’s ability to cater to both local demand and export markets. Mr. Bastos emphasized that the previously stagnant factory is now filled with activity as GWM finalizes its plans to establish a robust manufacturing process.
Focus on Local Content
By focusing on increasing local content in its vehicles, GWM aims to align itself closely with Brazilian market expectations. The decision to move away from assembly-line processes utilizing imported kits allows the company to take full advantage of the Mover program, which is described as vital for GWM’s growth and sustainability efforts in Brazil.
GWM’s commitment to integrating local resources not only adheres to regulatory requirements but also fosters goodwill with the Brazilian government and public. This strategy positions GWM not merely as an importer of vehicles but as a foundational player in Brazil’s automotive landscape.
The Road Ahead
As the opening date for GWM’s factory approaches, the company is optimistic about its future in Brazil. The establishment of local manufacturing aligns with broader trends in the automotive industry, where companies are increasingly looking to localize their supply chains in response to global market shifts.
GWM’s decision to produce the Haval H6, a vehicle that combines advanced technology with eco-friendly features, reflects the growing consumer demand for sustainable automobiles. As electric and hybrid vehicles gain popularity, GWM aims to position itself as a leader in this segment in Brazil.
Conclusion: A New Era for GWM in Brazil
With a firm launch plan and proactive community involvement, Great Wall Motors is set to reshape the automotive landscape in Brazil. The factory’s opening in May 2025 is more than just a business venture; it represents hope and renewal for many in the Iracemápolis community.
As GWM prepares to roll out the Haval H6 and engage with the local economy, the company’s efforts will likely have lasting impacts spanning job creation, environmental sustainability, and the evolution of the automotive sector in Brazil. The commitment to local content, supported by government incentives, positions GWM uniquely to thrive in this emerging market
