SAIC Motor, the Chinese state-owned automaker, is intensifying its focus on electric vehicles (EVs) in Europe after experiencing strong sales this year. The company has revealed its plans to establish a new EV manufacturing facility overseas to cater to the growing demand in the market.
Known as Shanghai Automotive Industry Corporation (SAIC Motor), the company is currently a global Fortune 100 entity and one of the four major Chinese state-owned automakers transitioning to EVs. Its EV initiatives span across China, other parts of Asia, and now Europe. SAIC Motor operates numerous joint ventures with global automakers, such as SAIC-Volkswagen, which is responsible for supplying Volkswagen, Skoda, and Audi vehicles to Chinese customers.
One of SAIC Motor’s significant overseas joint ventures is SAIC-GM-Wuling Automobile (SGMW), which manufactures commercial and consumer vehicles under the Wuling and Baojun brands. When considering its joint ventures, SAIC Motor stands as one of the largest players in the plug-in electric vehicle market and the second-largest strictly battery electric vehicle (BEV) company globally.
See also: SAIC-GM-Wuling Launches Baojun Yep: China’s Compact and Feature-Packed All-Electric SUV
Prior to venturing into EV production, SAIC Motor made its entry into Europe by investing in the UK-based MG Motor. In 2005, the British automaker had been acquired by another Chinese state-owned company, Nanjing Automobile, enabling the reintroduction of new MG models with the iconic badge after a ten-year hiatus, albeit produced in China.
Two years later, SAIC Motor acquired Nanjing Automobile entirely and established MG Motor UK Limited as part of its new sub-brand, SAIC Motor UK. MG Motor has since gained popularity in China, the UK, parts of Asia, and Europe. The Chinese automaker predicts that its overseas sales, largely driven by MG EVs in Europe, will surpass 1.2 million units this year alone.
To meet the increasing demand in foreign markets, SAIC Motor has announced its intention to establish EV production capabilities in Europe. Although the exact location is undisclosed, the company provided details about its expansion plans in Europe this week. In the first quarter of 2023, SAIC Motor reported selling 530,000 units overseas, marking a 40% increase compared to the previous year.
Notably, nearly 70% of these sales originated from the MG brand in Europe, which witnessed a more than twofold increase in sales during the first half of 2023, amounting to 115,000 units. SAIC Motor has also become the largest exporter among Chinese automakers, experiencing growing demand for MG Motor’s EVs in Europe during the first five months of this year.
See also: SAIC Plans to Introduce Solid-State Battery Electric Vehicle by 2025
SAIC Motor joins other private Chinese companies, including NIO, XPeng, and BYD, in expanding their EV offerings in Europe. Although these companies have not yet entered the US market, some have expressed their intentions to do so in the future.
While smaller, environmentally conscious countries like those in Scandinavia have witnessed the initial surge of Chinese EVs, other territories such as the Netherlands and Germany are also witnessing the establishment of showrooms and experiencing sales growth. This trend could indicate potential locations for SAIC Motor’s European production facility, but the automaker has not yet disclosed this information.
