China’s Great Wall Motors Set to Open Brazilian Factory in May, Focusing on Hybrid SUV Production: A Strategic Move Backed by Tax Incentives

Great Wall Motors from China is set to launch a manufacturing plant in Brazil in May, according to a report. The company's attention will primarily be on the production of the Haval H6, a hybrid sports SUV. This vehicle has been greenlit to take advantage of a tax incentive scheme in Brazil.

Great Wall Motors (GWM), the leading SUV and pickup truck producer in China, is scheduled to commence activities at its production facility in Brazil in May. The company aims to manufacture as many as 25,000 units in the inaugural year, as per a report published in the Brazilian publication, Valor Economico.

The establishment will mark GWM's third production site outside China, adding to its current facilities in Russia and Thailand.

The Chinese car manufacturer broke into the Brazilian market in 2021 by purchasing Mercedes-Benz's production plants, but until now, it has mainly operated as a goods importer.

GWM is gearing up to start local operations and has commenced a hiring campaign for 100 roles. The company also aims to generate 700 more jobs next year in partnership with a nearby technical institute.

The firm intends to increase the use of local resources in its vehicles manufactured in Brazil, leveraging the benefits of the Mover tax incentive initiative. This program provides tax relief considering aspects such as local procurement, investments in research and innovation, and efforts to reduce pollution emissions.

Ricardo Bastos, the director of institutional affairs at GWM Brazil, informed Valor that due to the incentives, the company has reassessed its strategies regarding which models to produce in Brazil.