- Great Wall Motor has also slashed around 100 jobs in Europe.
Great Wall Motor , one of China’s largest electric vehicle maker and with a presence in many markets across the world, has announced it is shutting its headquarter in Europe, located in Germany’s Munich. The company has blamed a ‘challenging market’ for its decision and has also slashed around 100 jobs here.
While its performance in China has been respectable, the going in Europe has been anything but for Great Wall Motor, a company that sold 6,300 electric cars here in 2023. This accounted for just a paltry two per cent of its overall exports in the year. Slowing sales growth for electric vehicles (EVs) and the intensifying competition among brands has meant that Great Wall Motor is facing the heat in the European summer.
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But another crucial factor that could emerge as the next big challenge for Chinese EV makers in Europe is the potential of a higher tariff on EVs imported form China. At present, Chinese EVs are extremely competitive because of the affordable price points at which these are offered at. But higher tariffs could drive up prices, conversely impacting demand and sales.
Founded in 1984, Great Wall Motor has its global headquarter in China’s Baoding and is a formidable player in the country’s EV space. But in recent times, it has also managed to expand its global presence with factories – for production as well as R&D centers – in Malaysia, Russia, Tunisia, Bulgaria and Ecuador. In 2023, the company sold around 12.30 lakh vehicles overall. But the going has been getting tougher gradually, not just for Great Wall Motor but for most EV manufacturers across the world.
Why are EV sales slowing down?
EV sales are rising but just not with the momentum that was previously predicted. And this is true for most markets across the world. The initial batch of enthusiastic buyers have bought their EVs and the masses are likely to be more circumspect with their purchase decisions. Affordability is also a key factor and companies are working hard to concentrate on entry-level models that are, at present, rather less.
Increasing competition between Chinese and global automotive companies has also meant that companies have had to announce price cuts to woo buyers at large.
First Published Date: 04 Jun 2024, 09:47 AM IST