SAIC Motor’s MG Motor brand is considering building an electric vehicle factory in Spain, according to a report by Bloomberg, as the company evaluates options to expand local production in Europe.
The move would form part of a broader strategy to mitigate the impact of European Union tariffs on Chinese-made electric vehicles. Bloomberg, citing sources familiar with the matter, said planning has recently shifted focus toward the Iberian Peninsula after Hungary had previously been viewed as the leading candidate.
The report noted that the project remains under consideration, with key aspects such as investment scale, production capacity and timeline still undecided. MG Motor did not respond to requests for comment, according to Bloomberg.
Earlier reports from Automotive News Europe indicated that MG had been searching for a greenfield site capable of supporting initial output of around 100,000 vehicles per year, although those details were never officially confirmed.
Hungary had been widely discussed as a potential location due to its investment incentives and the presence of several Chinese companies, including BYD, CATL and Eve Energy. However, attention has since shifted toward Spain, where northern regions such as Galicia have been highlighted for their logistics advantages, including shipping links to the UK—MG’s largest European market.
The potential investment comes as SAIC seeks to localise production following the EU’s decision to impose tariffs on Chinese electric vehicles, with the company facing duties of up to 35.3%. The tariffs have prompted Chinese automakers to reassess their European manufacturing strategies.
SAIC had previously announced plans in 2023 to produce the MG4 in Europe, though it did not specify a location at the time. Executives had indicated that a final decision on production would likely be made within two to three years, suggesting a timeline around 2025 or 2026.
Despite geopolitical tensions, MG has continued to expand its presence in Europe. The brand sold approximately 300,000 vehicles in the region in 2024, representing a 30% increase year-on-year. Hybrid models accounted for a significant share of growth, with sales rising sharply to around 137,000 units.
MG is now active in 34 European markets and works with roughly 1,300 dealership partners. “Increasing market penetration and a broadly diversified model portfolio are key contributors to the brand’s positive development in Europe,” the company said in its 2025 annual report.
