SAIC Group to Build MG Cars Factory in Spain by 2027
China's SAIC Group plans to build its first European electric vehicle factory in Spain, targeting MG cars production by 2027. The decision comes amid high EU tariffs on China-made EVs.
nbdpress · 2024-07-16
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.
2022 VOLKSWAGEN
POLO
202210,000kmPetrol
$9,844
2018 CHERY
TIGGO 3
201971,500kmPetrol
$5,231
2021 VOLKSWAGEN
GOLF
202315,000kmPetrol
$17,512
2022 AUDI
Q2L
20233,000kmPetrol
$20,303
2015 GEELY
VISION
201660,000kmPetrol
$1,940
2018 HYUNDAI
IX35
2018120,000kmPetrol
$7,376
2020 GEELY
VISION X3
202160,000kmPetrol
$6,054
2018 TOYOTA
CAMRY
201890,000kmPetrol
$15,161