Following BYD, MG Plans To Build Factory In Mexico

MG Cyber GTS Concept. (Doc. MG Motors)

JAKARTA - British auto brand Morris Garage (MG), confirmed it would build factories and development centers in Mexico and would increase sales in the region.

The manufacturer, now owned by SAIC Motor, also wants to produce vehicles from sub-brand IM locally. They say that this new base will help it expand to the Caribbean and allow it to better understand the automotive landscape in Latin America.

Reporting from Carscoops, Saturday, August 10, it is reported that the factory will be built around the area approaching the United States (US) border. However, there was no initial mention of the construction of the factory.

In addition, MG has not confirmed that it will expand its steps to reach the US market in the future.

By making cars in Mexico for the US market, MG could theoretically avoid the large tariffs recently imposed on cars imported into the US from China, but Uncle Sam's country authorities reportedly plan to step up defenses by banning Chinese software on autonomous vehicles.

What's more, the US government has also pressured Mexico to stop offering incentives to Chinese automakers considering investment in the southern region of the US border.

This move is similar to that taken by its competitor, BYD. The Chinese brand announced plans to build its own factory in Mexico earlier this year. However, the facility will not be used to assemble vehicles for the US market.

In addition to these two brands, Tesla is also considering building a factory in Mexico but is delaying a decision on the plan until after the US elections in November.

Elon Musk's CEO is worried that Donald Trump will keep his promise to charge electric vehicles made in Mexico and imported into the US.