MG Motor, a subsidiary of Chinese carmaker SAIC, is exploring the possibility of establishing a European manufacturing plant for its electric compact model, the MG4. Although the exact location for the facility remains uncertain, a decision is expected within the next two to three years.
William Wang, European head of MG Motor, revealed that European production would entail higher costs compared to their operations in China. Factors such as energy costs and labour expenses will be thoroughly assessed to identify the most favourable country for the plant.
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Despite the added expenses, Wang emphasized the strategic significance of local production, especially when annual sales reach substantial figures, such as 200,000 cars. Additionally, establishing a European plant could lead to significant cost savings by avoiding the ten per cent import duty.
The UK emerges as a strong contender for the plant location, given its status as MG’s largest European market. Moreover, SAIC already possesses a plant in Longbridge, near Birmingham, which presently serves as MG Motor’s research and development centre. However, since 2016, the plant has not been actively used for vehicle production, necessitating substantial investments to resume manufacturing activities. The site underwent redevelopment earlier in the decade to make way for housing development.
Notably, the MG4 electric series will mark the initial production line at the European facility, once its construction is finalised. Earlier this year, MG Motor announced the addition of the MG4 XPower, a top model boasting 320 kW four-wheel drive, to their product range. Furthermore, the company plans to introduce a variant with a larger battery for the single-engine standard model.
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In recent times, MG has enjoyed remarkable success in the European market. According to SAIC, MG sold a remarkable 115,000 vehicles across Europe in the first half of 2023, more than double the sales during the same period last year. This surge in demand underscores the brand’s popularity and serves as a compelling factor for the potential establishment of a European production facility.
