MG Motor is considering opening its European production plant in Spain

The management of MG Motor would be evaluating the construction of an electric vehicle plant in Spain. At least, that is what a recent report claims, based on sources close to the company. The new facilities on Spanish soil of the British brand controlled by the Chinese giant SAIC would be dedicated to the production of both electric vehicles and battery packs for them.

With the construction of this new plant, MG Motor aims to circumvent the tariffs imposed by the European Union on imports of Chinese electric vehicles.

The truth is that over recent months, Hungary seemed to be the European country with the best chances of hosting this new plant, thanks to the incentives offered by the government of this Eastern European country and the fact that other Chinese companies such as BYD or CATL have already decided to set up there. However, everything seems to have changed in a short time. Although the truth is that, for now, this remains a rumour and no official decision has yet been made.

It goes back a long way

About a year ago, a report already suggested that the management of MG Motor was looking for land on European soil to build a production plant. At that time, it was even claimed that this plant would have an initial production capacity of 100,000 vehicles per year.

SAIC has been weighing up the possibility of starting electric vehicle production in Europe for some time, even before the European Union established the special tariffs applicable to this type of vehicle. As early as 2023, SAIC announced its intention to produce the MG4 on the continent. At that time, it was estimated that the decision would be taken between 2025 and 2026, always prioritising a location that would allow production costs to be controlled, which are notably higher than those in China.

During the summer of 2024, the autonomous community of Galicia, in north-western Spain, already put itself forward as a candidate. The region’s good maritime connections with the United Kingdom, which is currently MG Motor’s most important market in Europe, are a very important advantage.

In 2024, MG Motor sold nearly 300,000 vehicles in Europe, 30 percent more than the previous year. Most sales corresponded to electrified models, with a spectacular growth of 300 percent in the British brand’s hybrid models, which reached 137,000 units. MG Motor is already present in 34 European countries and has a network of around 1,300 dealerships.