SAIC Group to Build MG Cars Factory in Spain by 2027

SAIC Group’s Plan for First European EV Factory in Spain

^{On July 16th, AutoCango got the news that China's primary carmaker SAIC Group is planning to build its first electric vehicle factory in Spain to mainly produce MG cars, its best-seller in Europe. The project is said to be currently in negotiations with Spain's Industry Ministry, with the decision done by this September 30th, and the complete of the factory is anticipated to be by Q4 2027.}

Strategic Choice: Why Spain?

SAIC Group choose Spain is because of its lower labor costs, reports said that Hungary and the Czech Republic are also in consideration as potential sites.

Impressive Sales Growth in Europe

According to SAIC Group, in 2022, its sales in the European market surpassed 100,000 vehicles; while in 2023, it sold out over 200,000 vehicles in Europe. And also MG4 EV was recognized as the top-selling compact pure electric vehicle in Europe, with a sales exceeding 10,000 units every month

Responding to EU Tariffs

The European Commission announced provisional import duties on China-made EVs ranging from 17.4% to 38.1%, and SAIC Group received the highest additional tariff, 38.1%. Even though, the company told the media that it will honor its commitment to European consumers. The initiative of this new factory planning is seemed to be a react to the high tariff.

SAIC Group's Global Footprint

Till now, SAIC Group’s has a well-established global presence. The bases outside of China including three R&D innovation centers in Silicon Valley, London, and Tel Aviv, three design centers in London, Munich, and Tokyo, and four production bases and factories in Thailand, Indonesia, India, and Pakistan, and over 1800 overseas sales networks.