Dozens of new Chinese car brands are expected to arrive in Europe, but this does not automatically guarantee success Great Wall Motors (GWM) This seems to be proof of that.

Great Wall Motors recently announced the closure of its European headquarters in Munich, Germany, due to declining sales, but also due to difficult market conditions and the threat of increased European tariffs on Chinese imports.

Speaking to Automotive News, a spokesperson for the brand said the “slowdown” in demand for electric vehicles and the possibility of higher import duties “creates significant uncertainty for a company like GWM, which sells electric vehicles.”

Recall that the European Union has launched an investigation into the possibility of the Chinese auto industry benefiting from the country, which if confirmed could lead to additional tariffs being imposed on electric cars imported from China.

“This decision represents a regulatory change and improvement, taking into account the challenging market conditions.”

GWM spokesperson

GWM's European headquarters will close from August 31 and will result in the loss of 100 jobs.

Last goodbye?

But this does not mean the end of the group in Europe. Operations on the “Old Continent” will be controlled from China and Great Wall Motors will continue to sell in European markets where it is already present. However, plans to expand into more markets on the continent have been put on hold for the time being.

Despite this announcement, in the first four months of the year, Great Wall Motors' sales were up 147% compared to the same period last year, according to Dataforce. However, this increase translated into sales of only 1,621 units, which is a very small number.

Of this volume, 1,149 units sold belong to Ora 3 (formerly Funky Cat) and the rest to Wey 05 (formerly Wey Coffee 02).

The group's plans include launching new models in Europe, such as the Aura 7, and the option to start importing combustion vehicles is open, which in principle will not be affected by the increase in these tariffs.

Chinese in Europe

Great Wall Motors is not the only Chinese brand “suffering” from difficult conditions in the European market. In fact, considering the possibility of the EU imposing additional tariffs on cars imported from China, many people are considering starting manufacturing in Europe.

If this happens, it could mean an “easing” of the price discrepancies offered between Chinese and European electric models, especially in the lower segments.

On the other hand, the difficulties of success in the market are also not easy at home for Chinese electric vehicle manufacturers. Because of the “price war” currently taking place in China, it creates serious difficulties in “surviving” each other Start-ups Of electric cars.

The most typical case is that of Aiways, which stopped selling in the domestic market, as there was no way to make a return, and focused its efforts on the European market:

source: Car news europe