SAIC MG Targets Spain For Its First Electric Vehicle Factory In Europe

MG Cyberster. (Photo: SAIC MG)

JAKARTA - China's auto giant SAIC MG Motor Corp is reportedly considering building Europe's first electric vehicle factory, to meet market needs on the continent.

Quoting from the CNevpost website, Tuesday, July 16, Spain is the destination country to build the factory, and its factories will be located in Galicia based on reports from internal company sources.

"MG will make a decision by September 30, targeting the fourth quarter of 2027 to produce its first vehicles at European factories," the report said.

Apart from Spain, SAIC will also consider placing its factories in other countries, such as Hungary or the Czech Republic, with lower labor costs.

"One of the main goals of MG's decision to build factories in Europe is to avoid tariffs for electric vehicles imported from China to the EU market," the report said.

As is known, on October 4, 2023, the European Commission officially conducted an investigation into imports of electric vehicles from China. In fact, on June 12, the European Commission revealed previously that the temporary balance import duty rate that will be imposed on imports of battery electric vehicles (BEVs) from China, with SAIC, including the MG brand, facing the highest tariff of 38.1 percent.

Then, on July 4 this year, the European Commission announced that it would impose an additional tariff starting July 5, with rates slightly lower than previously announced, with SAIC rates at 37.6 percent. This tariff is an additional 10 percent of the initial rate.

On July 5, SAIC asked the EU to hold a hearing on additional rates, stating that the balance investigation was unreasonable and false. The MG also issued a statement on July 5 saying it strongly opposes the EU's decision, and said the decision violated the principles of healthy competition and free trade.