The company, one of the largest independent auto manufacturers in China, is adjusting its European strategy as the electric vehicle market there becomes more challenging, it said in a statement on its website dated 31 May. About 100 European staff members will be let go, a company representative said on Monday. 

Shares in the automaker’s Hong Kong-listed arm fell as much as 9.4% on Tuesday — the biggest intraday drop since January — on news of the closure and weak May sales of 91,460 vehicles, a 9.5% year-on-year decline.

Great Wall Motor and other Chinese manufacturers are facing threats of higher import tariffs in the EU, where preliminary results of an anti-subsidy investigation are expected as early as next week. Higher tariffs would reduce the competitiveness of Chinese-made vehicles, likely adding to already-cooling demand for EVs in countries such as Germany and France which are scaling back or restricting subsidies.

The company cited numerous uncertainties in the region as a reason for pulling back. German media first reported the company’s plans last week.

Great Wall Motors last year reportedly sold about 6,300 cars in Europe, accounting for about 2% of its overall exports. 

The carmaker’s base operations in China will assume responsibility for providing support to European distributors and continue to explore new markets, the company said.