BUSINESS

SAIC Motor to Build $232 Million Auto Plant in Spain

Published: Jun. 2, 2026 11:46 p.m. GMT+8

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SAIC currently faces a maximum supplementary tariff of 35.3% on its imported EVs after the European Union designated the company as uncooperative during a recent anti-subsidy probe. Photo: VCG

Chinese automaker SAIC Motor Corp. Ltd. plans to invest 200 million euros ($232 million) to build a passenger vehicle plant in Spain for its MG brand.

The factory, located in the northwestern region of Galicia, will have an annual production capacity of 120,000 vehicles, with construction slated for 2027 and production expected to begin in 2028, the local government announced on Monday.

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SAIC plans €200M MG plant in Galicia, Spain, with 120,000 annual capacity, construction by 2027, production in 2028.
Move aims to bypass EU’s 35.3% anti-subsidy tariff on EVs; factory will create 2,300 jobs.
SAIC sold 306,000 vehicles in Europe last year; part of broader Chinese automaker shift to localize production.

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Who’s Who

SAIC Motor Corp. Ltd.: SAIC Motor Corp. Ltd., a Chinese state-owned automaker, plans to invest €200 million to build an MG-brand plant in Spain. It faces a 35.3% EU tariff on imported EVs. The company sold 306,000 vehicles in Europe last year and aims to localize production to avoid tariffs and meet regulatory demands.

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What Happened When

2025：: SAIC sold 306,000 vehicles in the region last year.

2026：: Chinese automaker SAIC Motor Corp. Ltd. plans to invest 200 million euros to build a passenger vehicle plant in Spain for its MG brand. The local government announced the factory on Monday, June 2, 2026. SAIC chose Galicia over alternative sites in Turkey. The factory is expected to create 2,300 local jobs, and SAIC still requires port concession rights and national foreign direct investment clearance before breaking ground. SAIC recorded a 10.3% year-on-year sales increase to 110,000 units in the first four months of 2026. SAIC faces a maximum supplementary tariff of 35.3% on its imported EVs after a recent EU anti-subsidy probe. BYD Co. Ltd. and Chery Automobile Co. Ltd. have already committed to manufacturing in Hungary and Spain. Geely Automobile Holdings Ltd. and Changan Automobile Co. Ltd. are actively securing local facilities. SAIC's expansion is part of a broader wave of Chinese auto investment sweeping Europe to defend their 9% regional market share.