MG Motor Confirms Construction of Its First European Production Plant in Galicia

MG Motor, the British car brand under the control of the Chinese group SAIC, has confirmed its intention to establish its first production plant in the European Union. The project will be carried out in the Galician town of Ferrol, in northwestern Spain, with a planned investment of around 200 million euros.

The new Galician plant of MG Motor will begin operating, barring any setbacks, in 2028, and its activity will be developed in two phases. Once the second phase is completed, the plant will have an annual production capacity reaching 120,000 vehicles. This project will have a very positive economic impact on the region, where some 2,000 jobs are expected to be created.

The reason that led MG Motor to push forward this initiative is none other than trying to avoid the special tariffs imposed by the European Union on electric vehicles imported from China. These special tariffs are also disproportionately high in SAIC’s case compared with other Chinese manufacturers, with a total applicable rate in this case of 45.3 percent. By producing its electric models for the European market at the new Galician plant, SAIC will be able to avoid this high levy, thus becoming much more competitive.

A very carefully considered decision

The choice of Galicia for the construction of MG Motor’s first plant was no coincidence. This region offers significant logistical advantages thanks to its direct maritime connection with the United Kingdom, today the main market for MG Motor in Europe.

The Chinese manufacturer has been considering opening a new production plant on European soil since 2023. Although Hungary initially seemed the most likely destination for this new plant, the town of Ferrol was ultimately chosen.

“By investing in local capabilities, we strengthen our presence in Europe and contribute to a more competitive automotive ecosystem, accelerating the path towards smarter and more sustainable mobility.”

Last year, MG Motor sold more than 300,000 vehicles in Europe -including the United Kingdom-, with spectacular growth in hybrids, which tripled to reach 137,000 units. One of its flagship electric models is the compact MG4 EV, from which it recently launched a more affordable version.