Another day another Chinese OEM begins local European production

As expected, China's SAIC chooses a greenfield site in low-cost Spain rather than a legacy German facility.

A relatively low-capacity 120K (less than half of its regional deliveries in 2025) facility will begin production in 2028, according to MG, creating 2,000 jobs, although the press statement doesn't mention whether they will be created locally or whether Chinese employees will also make up a proportion of those jobs.

The facility will help MG avoid anti-subsidy EU tariffs imposed on Chinese BEVs entering the 27-member single market, with the state-owned company facing the highest tariff of 35.3% (plus the standard 10% import tariff).

The EU's  Industrial Accelerator Act (IAA) and local-content elements are likely also drivers of the decision.

MG remains the leading Chinese brand across Western Europe, ahead of both BYD and Chery, according to Schmidt Automotive Research data.

Galicia, in Northern Spain, is well placed from a logistical position, given the imports of parts from China and also the export of complete models from the facility to its largest European market, the UK and the largest inbound European ports of Antwerp, Zeebrugge, and Bremerhaven (although MG uses Willemshaven), well positioned for further European distribution.

Chery also has an assembly facility in Spain, while Leapmotor will begin production at a Stellantis facility in Zaragoza, and later Madrid. 

BYD chose Hungary for its first regional production facility.  Sánchez, not backing the anti-subsidy tariffs 24 months ago following his trip to China, now appears to be being rewarded!  

Scope: Western Europe's 18 Markets: EU Member States prior to the 2004 enlargement, plus EFTA markets Norway, Switzerland, Iceland, plus UK – accounting for 90% of the enlarged European region.

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*Western Europe 18 Markets: EU Member States prior to the 2004 enlargement plus EFTA markets Norway, Switzerland, Iceland, plus UK