- The initial investment in the plant is about 200 million euros ($233 million), with a planned annual production capacity of 120,000 vehicles.
- MG's sales in the European market reached 307,000 units in 2025, up 26% year-on-year.
The MG unit of SAIC Motor (SSE: 600104), one of China's largest automakers, will build its first European Union auto plant in Spain, consolidating its position in the European market.
MG announced on Tuesday that its first production plant on the European mainland is being built in Galicia, Spain.
The investment of about 200 million euros ($233 million) marks a key milestone in MG's growth strategy of "in Europe, for Europe," according to a statement.
The plant is scheduled to begin production in 2028, with an expected annual production capacity of 120,000 vehicles, and is projected to create more than 2,000 jobs in Europe.
The new site will combine production, research and development, component supply, and intelligent logistics to create a modern industrial hub, bringing MG closer to the European market and strengthening its supply chain in Europe, the company said.
By building this plant in Spain, MG aims to significantly expand the scale of localized production and sourcing, while collaborating more closely with European partners.
MG did not disclose further details. The annual capacity of 120,000 vehicles will likely be dominated by battery electric vehicle (BEV) models, according to a Tuesday report by Chinese media outlet Leiphone.
The main purpose of the facility is to dodge the impact of EU tariffs imposed on China-made BEVs. By manufacturing locally in Europe, SAIC will be able to respond more flexibly to trade barriers, the report noted.
This expansion plan comes amid strong sales for MG in Europe.
In 2025, MG's sales in the European market reached 307,000 units, up 26% year-on-year. This makes MG the only Chinese auto brand to rank among the top 20 in European market sales.
MG's European management had previously said that building a local plant would become economically viable once annual sales in Europe reached the 300,000-unit mark.
Earlier this year, the MG brand celebrated the milestone of its one-millionth vehicle delivery in the European market.
Since returning to the UK market in 2011, the brand has grown into one of the fastest-growing auto brands in Europe, deploying more than 1,300 dealers across 34 European countries.
To support its further sales growth, MG is expanding its product matrix in the European market. Over the past few months, the company has intensively launched multiple models, including the MG4 EV Urban and its first seven-seater plug-in hybrid SUV, the all-new MG9.
Spain, which boasts one of the largest auto manufacturing industries in Europe, is gradually becoming a bridgehead for Chinese automakers expanding into Europe.
In addition to SAIC, Chery (HKEX: 9973) has also formed a joint venture with Spanish automaker Ebro, with plans to produce cars in Barcelona.
"By investing in local skills, a stronger European presence and a more competitive automotive ecosystem, we are accelerating Europe’s path to a smarter and more sustainable mobility future," said William Wang, managing director of MG Europe.
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