July 13, 2024 – According to reports from Europa Press and Expansión, the SAIC Group is considering establishing its first electric vehicle factory in Europe in Spain, dedicated to producing MG cars for sale across the region. The company is currently in discussions with the Spanish Ministry of Industry regarding the potential set-up of the factory.
This news was confirmed by a representative from SAIC to Europa Press on Friday. It is reported that the company aims to make a final decision by September 30, with plans to produce the first vehicle from the new factory in the fourth quarter of 2027.
Besides Spain, SAIC is also eyeing Hungary and Czech Republic as potential locations for the factory due to their lower labor costs. However, Spain has an advantage due to its proximity to the UK, allowing for better connectivity via sea freight. The UK remains a crucial market for MG, a brand that originated in Britain.
One of the primary motivations for MG to set up a factory in Europe is to circumvent the tariffs imposed on Chinese electric vehicles entering the EU market. SAIC has been subjected to a maximum tariff of 38% by the EU and has requested discussions with the European Commission on a “case-by-case” tariff arrangement.
With MG anticipating sales of 250,000 vehicles in Europe by 2024, local production in Europe becomes a viable option.
Furthermore, SAIC has announced plans to establish a network of nearly 100 comprehensive service points across Spain and set up a logistics hub in Barcelona to manage MG’s operations in southern Europe. Impressively, in less than 40 months, SAIC has directly created over 500 jobs in Spain and indirectly supported more than 1000 related employment opportunities, highlighting its significant contribution to the Spanish and European economy.
