SAIC Motor to Build First EV Factory in Europe, Mulls Spain, Hungary or Czech Republic

TapTechNews July 12th news, according to reports from EuropaPress and Expansión, SAIC Motor is considering building its first electric vehicle factory in Spain in Europe to produce MG (Morris Garages) cars that will be sold in various markets in the region. Currently, SAIC Motor is in consultation with the Spanish Ministry of Industry to set up a factory in the country.

This news was confirmed by relevant people from SAIC to EuropaPress on Friday local time. It is reported that the company will make a decision before September 30, and the new factory plans to produce the first car in the fourth quarter of 2027.

But in addition to Spain, SAIC also considers setting the factory in Hungary or Czech Republic, as these places have lower labor costs. According to Expansión, one advantage of Spain is that it is closer to the UK and has better connections with the UK by sea transport, and the UK is a key market for MG (TapTechNews note: The MG brand originally originated in the UK).

One of the main goals of MG's choice to set up a factory in Europe is to avoid the tariffs imposed on Chinese electric vehicles entering the EU market. Currently, SAIC has requested to discuss with the European Commission the tariffs applicable to the specific situation - SAIC is imposed with a top tariff of up to 38% by the EU.

MG expects to reach 250,000 units in sales across Europe in 2024, and these figures make it possible to carry out partial production in Europe.

SAIC also mentioned that it has established a network of nearly 100 comprehensive service points covering the whole of Spain and has set up a logistics hub in Barcelona to manage the operation of MG cars in the entire southern Europe. In addition, SAIC also emphasized that in less than 40 months, it has directly created more than 500 jobs in Spain and more than 1,000 indirect jobs related to its business.