Hungary

MG is one of the Chinese fashion brands in Spain. It is the company that dominates the market by sales volume, among other things thanks to its clear focus on the entry-level or mid-range. Its figures in the Spanish state rise like foam: In 2025 they sold 45,163 units and grew by 46.78%. In the midst of the global structural reconfiguration of the sector towards electric mobility enhanced by an EU that does not hesitate to try to regulate the market in favor of classic players located in its territory against the deluge in quantity, quality and price made in ChinaSAIC motor has made a move to protect its piece of the pie in the old continent: set up a plant to act as a European hub. Anonymous sources They have leaked to Bloomberg that the chosen destination is Spain. MG Choose Spain. SAIC Motor, one of the China’s largest automakers by volumeplans to establish its first electric vehicle production plant in Europe within Spanish territory. Anonymous sources linked to the sector they point out to Bloomberg that the decision is not yet final and that key details such as the size of the investment, production capacity or deadlines are missing. As explains The EconomistSAIC Motor has been studying options within the Spanish state for more than a year, which has experience in the deployment of electric vehicle platforms under the umbrella of government incentives. Why is it important. For SAIC Motor the answer is simple: investment is critical to mitigate the impact of the tariffs that the EU applies to Chinese manufacturers. By producing on European soil, MG escapes these taxes, which allows it to continue maintaining its aggressive pricing strategy, essential for its rapid growth. From a technical point of view, having a plant here would allow it to better adapt its models to the standards and tastes of the European consumer, in addition to reducing its logistical footprint. Spain It is the second European automobile producer and ninth in the world, with almost 2.3 million vehicles produced in 2025 according to ANFAC data. The arrival of a brand with the sales volume of MG represents traction for the entire automotive and associated industry, in the face of a panorama of forced transition from combustion engines and with an uncertain future of its most historic plants. That the industry shifts from fossil fuel engines to electromobility is key so that it does not lose relevance in the state GDP. Context. After eight months of investigation, Brussels determined that Chinese electric manufacturers receive state subsidies that distort competition and threaten millions of European jobs, so producing these cars on the old continent avoids those tariffs in the bud. The final tariffs approved by the European Commission applicable to BEVs imported from China are: BYD Group, 17%; Geely Group, 18.8%; SAIC Group, 35.3%, among others. To that we must add 10% base. Bottom line: SAIC Motor Corporation Limited is more interested than anyone in finding a solution. Despite this, they are selling cars like hotcakes: just look at any recent ranking of best-selling cars. Chinese brands have found two ways to avoid tariffs: establish factories within Europe or import vehicles in unassembled kits (CKD) to assemble them on European soil. SAIC aims to combine both phases. What Spain has that Hungary does not have. The eastern European country has until now been the favorite of Chinese manufacturers in terms of electric cars and batteries and there are no shortage of reasons to choose it: it offers lower labor costs, it has a geographically central position in Europe and direct links with China through the Belt and Road Initiative (Belt and Road). In addition, it already accumulates investments from BYD, CATL either NIOas well as other classic actors in the industry. Spain adds to its industrial muscle and its consolidated experience in the sector an advantage that Hungary does not have: a market where MG already leads sales and an ecosystem that is fully activated. In addition to having efficiency as a flag, in the words of the Spanish Minister of IndustryJordi Hereu. But there is a key milestone: the Figueruelas (Zaragoza) plant now has a date for make Leapmotor electric vehicles starting in October of this year, combining Chinese technology and Spanish production, consolidating a model in which SAIC can be reflected. Zaragoza is not only a precedent: it is proof that Spain can accommodate the Chinese electricity transition without industrial or political friction. All the pools point to Galicia. In the absence of official confirmation and knowing more details, the location for the future plant What sounds the most is Galicia: has extensive industrial experience linked to the sector, a consolidated chain of suppliers, the Salvaterra-As Neves logistics platform and the proximity to the port of Vigo, which opens the doors to maritime connections with the United Kingdom, northern Europe and Atlantic markets. The icing on the cake: the president of the Xunta, Alfonso Rueda, focused on his recent official trip to China in strengthening commercial relations in the automotive industry and in his busy schedule he had time to visit the SAIC factories and hold a meeting with the board of directors. First steps. Unveil Galicia Press that the model initially proposed for its Spanish plant points to CKD assembly, with the possibility of evolving towards full production according to sources in the sector. That is, the main components of the vehicle are manufactured at source and sent in pieces to the new factory for final assembly. Leo Zhang, head of SAIC for Spain and Portugal, has already spoken profitability of a possible European plant: from around 250,000 units per year. Although it is unknown which model they will start with (there are those who point to the utility vehicle MG2, direct rival of the Renault 5 and the future Volkswagen ID.2), if there is an orientation regarding deadlines: SAIC intends launch the first model manufactured in Europe in 2027. Yes, but. The news rests on anonymous … Read more