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Chinese Automaker Plans Second Mega Factory in Brazil with $2 Billion Investment to Produce Electric and Hybrid Cars in Strategic Location.

Author profile image Alisson Ficher
Written by Alisson Ficher Published on 24/06/2026 at 11:08 Updated on 24/06/2026 at 11:09
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GWM’s industrial expansion in Brazil gains a new chapter with a factory planned in Espírito Santo, an advancement that increases the national production of electrified vehicles and reinforces the Chinese automaker’s strategy in a market considered relevant outside Asia.

GWM is preparing a new stage of industrial expansion in Brazil, with a second factory planned for Aracruz, in Espírito Santo, in a move that increases the Chinese automaker’s presence in the country.

Expected to be officially announced in the first week of July, the unit will have national production of electric and hybrid cars, within the company’s plan to strengthen its operation outside Asia.

The new complex is expected to complement the already established factory in Iracemápolis, in the interior of São Paulo, where the brand started its local production and structured the first industrial base in the Americas.

With the Espírito Santo plant, the company begins to design an operation less concentrated in São Paulo and more focused on increasing the productive capacity of electrified vehicles in Brazil.

New GWM factory in Espírito Santo

In Aracruz, the future unit is expected to play a significant role in the production of the ORA 5 family and other electrified vehicles planned for the Brazilian market.

According to CNN Brasil, the plant will have full operation and will be used to manufacture electric and hybrid cars in the country, in a phase focused on new products and greater industrial scale.

By choosing Espírito Santo, GWM expands its production map in Brazil and reinforces electrification as the central axis of its national strategy.

In this scenario, the state becomes part of the automaker’s expansion plan at a time of growth for hybrid, plug-in hybrid, and electric vehicles in the Brazilian market.

There is still no public disclosure of all the details about the construction schedule, start of production, annual capacity of the Espírito Santo factory, or the number of jobs associated with the new complex.

For this reason, this data should be treated with caution until the company presents official information about the implementation of the unit in Aracruz.

Iracemápolis opened the brand’s national phase

Officially inaugurated on August 15, 2025, the Iracemápolis factory marked the beginning of GWM’s production in Brazil and consolidated the brand’s first plant in the Americas.

Located in the interior of São Paulo, the unit is also the company’s first in the Southern Hemisphere and the third outside China with a complete production base.

During the inauguration ceremony, the automaker informed that the São Paulo plant already had 600 employees and 18 Brazilian suppliers integrated into the operation.

Local production started with three models: the hybrid SUV Haval H6, the medium pickup Poer P30, and the seven-seater SUV Haval H9.

Installed in the former Mercedes-Benz factory, the complex was purchased by GWM before the start of Brazilian operations and underwent adjustments to accommodate the brand’s national line.

The structure has a capacity for 50,000 vehicles per year and includes areas for welding, robotic painting, assembly, energy, logistics, and an integrated supply chain.

In addition to vehicle production, Iracemápolis received the announcement of GWM’s first Research and Development Center in South America.

This structure is expected to work on flex technologies, hybrid systems, and the adaptation of global vehicles to the usage conditions, fueling, and preferences of Brazilian consumers.

Investment of R$ 10 billion until 2032

GWM’s plan in Brazil foresees a total investment of R$ 10 billion over ten years, a value that supports the industrial and commercial expansion of the automaker in the country.

According to the company, the first phase totals R$ 4 billion until 2026, focusing on the brand’s launch, the reactivation of the São Paulo plant, and the expansion of Iracemápolis.

Between 2027 and 2032, the second phase of the program foresees an additional R$ 6 billion, aimed at jobs, localization of parts, and the development of new products.

The expansion to Espírito Santo appears within this long-term movement, although the company has not yet publicly detailed any potential additional specific investment for Aracruz.

Part of the industrial strategy involves the gradual localization of components, in a model that seeks to increase the participation of local suppliers in the production chain.

In Iracemápolis, the company reported that it adopts the piece-by-piece system, considered more complex than the traditional SKD and CKD assembly models.

In this format, painting is done in Brazil and the national chain begins to participate in broader stages of the production process.

ORA 5 gains space in the Brazilian strategy

Among the products linked to GWM’s new phase, the ORA 5 appears as one of the most important bets for the Brazilian operation.

CNN Brazil reported that the second factory will be prepared for the model’s family and other electrified vehicles, based on a new generation of products.

In Brazil, GWM itself began on June 1, 2026 the advance reservations for the ORA 5, presented as its first 100% electric SUV in the national market.

The model is the second vehicle of the ORA family in the country, after the ORA 03, and arrives to expand the brand’s electric line.

Reservations were opened on the GWM website, through Mercado Livre, and at the automaker’s dealerships, with a deposit of R$ 9,000.

On the occasion, the company informed that the official price would be announced on June 29, keeping the launch within the agenda of expanding the electric line in the country.

With a length of 4,471 mm, a width of 1,833 mm, and a wheelbase of 2,720 mm, the ORA 5 is larger than the ORA 03.

The brand presented the model with a proposal for urban and road use, in addition to highlighting connectivity features, remote updates, and a driving assistance package.

The arrival of the new factory in Espírito Santo reinforces a strategy designed since the opening of the São Paulo operation and increases Brazil’s weight in GWM’s international plans.

By diversifying its industrial base and advancing in the production of electrified vehicles, the automaker seeks to consolidate the country as a relevant market within its operation outside Asia.

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Alisson Ficher

A journalist who graduated in 2017 and has been active in the field since 2015, with six years of experience in print magazines, stints at free-to-air TV channels, and over 12,000 online publications. A specialist in politics, employment, economics, courses, and other topics, he is also the editor of the CPG portal. Professional registration: 0087134/SP. If you have any questions, wish to report an error, or suggest a story idea related to the topics covered on the website, please contact via email: alisson.hficher@outlook.com. We do not accept résumés!

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