In the wave of globalization, Great Wall Motors once again demonstrated its ambitions. On November 26, 2024, Shi Qingke, President of Great Wall Motor International, met with Brazilian President Luiz Inácio Luiz Inácio Luiz Inácio This cooperation is not only a commercial expansion, but also a strategic deployment of Great Wall Motors for the development of the global automotive industry. At the heart of its plan, a new plant in Brazil, will be a central node for the drive of electrified and intelligent technologies.
The plant is scheduled to be officially put into operation in mid-2025, with a total investment of more than 10 billion reais (about 12.2 billion yuan) and an estimated annual production capacity of 100,000 units, which will become the production and export hub of Great Wall Motors in South America. Not only that, but the plan also promises to create 4,500 local jobs, which will not only boost Brazil's economic development, but also lay a solid foundation for Great Wall Motor's globalization.
Figure: Great Wall's global layout of the construction of a factory in Brazil
1. Intelligent Manufacturing and Green Transformation: The Driving Engine for Technological Upgrading
Great Wall Motor's Brazil plant is not only a production base in the traditional sense, but also a modernization project with intelligent manufacturing and sustainable development at its core. The factory will introduce intelligent and digital production technologies to create an efficient production process, while focusing on the manufacturing of new energy vehicles to meet the global trend of green transformation.
It is worth noting that Great Wall Motor's localized model design will be based on the unique needs of the Brazilian market. For example, the first hybrid flex-fuel pickup truck to be launched uses ethanol as the core fuel combined with a high-efficiency electric motor, which meets both Brazil's environmental requirements and local driving habits. This two-way adaptation strategy highlights Great Wall Motor's accurate understanding of market demand.
2. Innovation for Jobs: Boosting Local Economies
Great Wall Motor's investment is not only reflected in infrastructure and technology research and development, but also directly promotes local employment and economic growth. When completed, the plant is expected to provide more than 4,500 jobs in Rio Grande do Sul, covering a wide range of occupations, from entry-level skilled workers to high-end R&D jobs. This initiative has undoubtedly alleviated the pressure on local employment and injected new vitality into Brazil's socio-economic development.
Great Wall Motor's emphasis on social responsibility is also reflected in its active participation in post-disaster reconstruction and public welfare. For example, in response to the flooding in Rio Grande do Sul, Great Wall Motor not only donated 200,000 reais, but also organized employees to donate materials to provide direct assistance to the disaster area.
3. Data perspective: Great Wall Motor's market potential
According to a report by Future Think, the market share of Chinese brands in South America is increasing year by year:
1. In 2018, the company sold 89,000 units, with a market share of 2.1%;
2. In 2023, sales will increase to 163,000 units, accounting for 4.9%;
3. From January to April 2024, the sales volume of Chinese brands will reach 81,000 units, with a market share of 7.9%, and the annual sales volume is expected to exceed 200,000 units.
In addition, the new energy vehicle market in South America is also growing rapidly: sales in 2023 will increase by 360.6% year-on-year to 23,000 units, with a penetration rate of 0.7%; Sales in the first four months of 2024 have already exceeded that of the whole of the previous year, indicating that the demand for new energy vehicles is accelerating. As a leading NEV company, Great Wall Motor has a significant advantage in this market, and the start of production of its Brazilian plant will further strengthen its market position in the region.
4. Sustainable Development: Exploring Hydrogen Collaborations
Great Wall Motor is not only committed to the promotion of new energy vehicles, but also actively participates in the research and development of technologies in the field of clean energy. The signing of the Memorandum of Understanding on Cooperative Development of Hydrogen Energy with the Government of the State of São Paulo demonstrates its determination to advance the feasibility study of hydrogen-powered transport. Through this partnership, Great Wall Motor will help Brazil achieve a technological breakthrough in the field of clean energy and further strengthen its image as a leading global automaker.
5. Deepening the globalization strategy
Great Wall Motor's pursuit of globalization is not limited to the South American market. Throughout Latin America, Europe and Southeast Asia, Great Wall Motors is constantly deepening its market layout. For example, the launch of the Haval H6 and Ora series of electric models in Mexico, as well as the active promotion of local partnerships in the Southeast Asian market, demonstrate the strong execution of its global expansion strategy.
The investment plan in Brazil is not only an important node of its global layout, but also a key lever for its global reach. With the completion and commissioning of the plant and the further release of market demand, Great Wall Motor is expected to occupy a larger market share in Brazil and the entire Latin American region.
6. Summary: Great Wall Motor's globalization has reached a new height
Great Wall Motor's commitment to invest 10 billion yuan and create 4,500 jobs in Brazil not only reflects its long-term plan for the Latin American market, but also demonstrates its competitiveness in the global automotive industry. Through intelligent manufacturing, technological innovation, social responsibility and market adaptation, Great Wall Motor is building a global brand with new energy as the core driving force.
In the future, with the official operation of the Brazilian plant and the in-depth implementation of the localization strategy, Great Wall Motor will not only inject vitality into the Brazilian economy, but also provide important support for the green transformation of the Latin American market and the upgrading of the automotive industry. This investment is not only a commercial success, but also a profound manifestation of global sustainability and social responsibility. Great Wall Motors is taking practical actions to set a new benchmark for Chinese brands in the global market.
