The quiet northern Bulgarian city of Lovech is about to become a frontline in the global car industry's fiercest contest. Great Wall Motor (HKEX: 2333), one of China's biggest automakers, has confirmed plans to produce a compact SUV in Bulgaria through local partner Bulgarian Automotive Industry (BAI), with a planned capacity of 50,000 vehicles a year and production scheduled to start in the first quarter of 2027.
Rather than building from scratch, GWM will upgrade BAI's existing facility in Lovech — the fastest route to a European production base, and a telling detail about how Chinese carmakers now approach the continent. The plant anchors a wider offensive: GWM is targeting European expansion with ten new models planned over two years, and locally assembled vehicles give the brand a foothold that pure imports cannot match.
The timing is no coincidence. A sharp drop in new-car sales in China's domestic market has pushed the country's automakers to chase foreign customers harder than ever, and Europe is the prize. The Bulgarian bet also lands just as China and the EU have reached an understanding to maintain stable export access based on 2025 import volumes — a fragile equilibrium that makes assembly inside the bloc both a hedge against friction and a strategic opportunity.
