Chinese company SAIC will start production of MG cars at its first European plant in Spain.
MG brand, owned by SAIC Motor, has chosen Spain as the location of its first European automobile plant, Bloomberg reports. This is a strategic step aimed at reducing the impact of European Union customs tariffs and strengthening the company's position in the fast-growing electric vehicle market in the region.
The plant, located in the outer port of Ferrol in Galicia, is expected to require an initial investment of about 200 million euros, excluding port fees, with a potential annual production capacity of up to 120,000 vehicles and start of operations scheduled for 2028. The project also provides for the creation of an industrial and logistics hub nearby and could create more than 2,000 jobs. For SAIC, local manufacturing in the EU will help mitigate the impact of Brussels controls on Chinese subsidies for electric vehicles, as well as demonstrate that Chinese automakers can contribute to job creation, supplier development, and industrial capacity in Europe.
MG, a former British brand owned by SAIC for almost two decades, is already the most popular Chinese brand in Europe. Galicia noted that the region was chosen due to its production base, access to the port and the ability to ensure rapid deployment, while significant use of local resources is expected. The project has been classified as strategically important, allowing for faster permitting, although port concessions and foreign investment approval are still required. The choice of Spain also excludes Hungary, another candidate for investment.