MG to manufacture in Spain according to reports
- Matthias Schmidt
- 7 days ago
- 2 min read
According to two separate reports from Bloomberg and Reuters, China's MG, a subsidiary of state-owned SAIC, is to set up a car production site in Spain.
The long-awaited decision was discussed on the sidelines of the current Beijing auto show, while a high-ranking MG executive told us at a recent company event near Frankfurt that a decision has been made, but he couldn't comment further on the location.
Local production will allow MG to avoid the anti-subsidy tariffs of up to 35.3% on its BEV vehicles, as it didn't contribute to the investigation.
BYD EUROPE has been levied with a lower tariff of half that rate (17%) since the tariffs were implemented at the end of 2024, given that it took part in the investigation.
Since the start of 2025, MG has consequently adjusted its strategy, with BEV models now accounting for less than 20% of its total regional Western European volumes, according to Schmidt Automotive Research, which has caused a dangerous spiral in its EU CO2 fleet emissions average.
MG remains the largest Chinese brand across Western Europe, according to Schmidt Automotive Research data, accounting for 2.3% of the total market's new volumes during Q1 2026, which was just 0.1ppts ahead of BYD and 0.3ppts ahead of fast-chasing Chery.
Combined Chinese volumes accounted for a record 8.6% of the region's total new passenger car market during the opening 3 months of the year and rose to 10% during March itself, boosted by a seasonal impact in their highest volume market for Chinese models, the UK, during the same month.
A full analysis is available for our clients in the upcoming Q1 2026 Chinese OEM Study. The full year study is available to order below
*Western Europe 18 Markets: EU Member States prior to the 2004 enlargement plus EFTA markets Norway, Switzerland, Iceland, plus UK
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