MG Motor, a subsidiary of China’s SAIC Motor, is expected to announce the location for its first European manufacturing plant during the summer, according to people familiar with the matter, Automotive News Europe reported. The company is reportedly focusing on securing an undeveloped site rather than taking over an existing facility, despite several offers from different countries.
Plans for the new factory include an initial production capacity of 100,000 vehicles annually, with manufacturing expected to commence within 12 to 16 months following project approval.
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MG Motor is also weighing the option of establishing a second, separate plant with the same capacity, rather than expanding the original site. The timeline for final approvals remains uncertain.
SAIC had outlined ambitions to produce the MG4 model in Europe as early as 2023, prior to the European Union’s decision to impose tariffs on Chinese-made electric vehicles. While northern Spain, particularly Galicia, emerged as a favored location due to strong shipping links to the UK, new political factors have complicated the situation.
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Following the EU’s move to impose a 35.3 per cent tariff on SAIC imports, Chinese authorities have reportedly discouraged investments in EU member states that supported the tariffs, including Spain.
Germany, Hungary, Slovakia, and Slovenia were among the few countries that opposed the tariffs, positioning them as potential candidates for the plant. Germany’s higher production costs may pose challenges, while Hungary, which has already attracted significant Chinese investments, remains a strong possibility.
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MG Motor maintained its position as one of the leading Chinese automotive brands in Europe in 2024, recording 243,395 vehicle sales across electric, plug-in hybrid, and hybrid models. However, growth was modest at 5.1 per cent, and the proportion of fully electric vehicles within its sales mix declined from 47 per cent in 2023 to 30 per cent. The company has also recently unveiled an updated version of its MG4 electric model and is preparing the MG S5 EV for the European market.