Chinese giant SAIC Motors has selected Spain over Hungary for its first European factory producing MG electric vehicles, according to Bloomberg. The choice aims to avoid EU tariffs and still needs to finalize investment and production details. Anonymous sources point to Galicia as a leading candidate.
State-owned Chinese automaker SAIC Motors, seventh by sales volume in 2025 and headquartered in Shanghai, has chosen Spain over Hungary for its first European plant producing MG electric vehicles, acquired in 2007 after Rover's bankruptcy. Bloomberg, citing anonymous sources, reports the decision is not yet firm, with investment size, production capacity, and timelines still under discussion.
The announcement follows Spanish Prime Minister Pedro Sánchez's recent visit promoting investment opportunities to firms including SAIC. This week, Galicia's regional president Alfonso Rueda met SAIC executives after touring their Shanghai R&D center and plans to visit their Zhengzhou battery plant this Saturday. A SAIC delegation visited Galicia in December, engaging with local government and the Vigo Port Authority, positioning the region as a top contender.
The move addresses challenges in China from low demand, overcapacity, and intense price competition in EVs. The EU imposed tariffs from 7.8% to 35.3% on Chinese imports, with SAIC facing the highest rate, though minimum price commitments are under negotiation. Similar local production strategies include Chery at Barcelona's former Nissan site and Stellantis partnerships with CATL in Zaragoza.
