Report: MG Motor to set up a Spanish factory amid EU tariff turmoil

Electric vehicle manufacturer MG Motor, a subsidiary of SAIC Motor Corp., is reportedly eyeing Galicia, Spain, as the potential site for its first European manufacturing plant. This news comes as the company looks to avoid the hefty tariffs imposed by the European Union on Chinese EV imports.

MG Motor wants to finalize its decision by September 30, aiming to start production at the new facility by the fourth quarter of 2027. The plant would obviously primarily cater to the European market, serving as a production hub for various MG electric models. MG is also evaluating alternative locations in Hungary and the Czech Republic, where labor costs are lower.

A primary catalyst behind MG's European expansion is the desire to circumvent the escalating tariffs on Chinese EVs entering the EU market. These tariffs, originally set at 10%, have recently gone up to 37.6% for SAIC, MG's parent company. The European Commission initiated an anti-subsidy investigation in October 2023, ultimately leading to additional duties.

MG has vehemently opposed the EU's decision, deeming it a violation of fair competition and free trade principles. Despite these challenges, the company has reaffirmed its commitment to the European market, vowing to navigate potential sales fluctuations and persist in its endeavors.

Meanwhile, MG continues to expand its electric portfolio. The unveiling of the MG Cyber GTS electric sports car at the Goodwood Festival of Speed 2024 was the lattest addition. This two-door, four-seat hardtop sports car joins the MG Cyberster, which debuted last November.

The Cyberster, based on the MG Cyber Cube platform, is a more affordable electric sports car option, with prices in China starting at RMB 319,800 ($44,000). Unfortunately, in Europe, it starts at a much higher $7,600. The top-tier Cyberster variant, equipped with dual electric motors generating up to 400 kW and a maximum torque of 535 lb-ft, can accelerate from 0 to 62 mph in a mere 3.2 seconds.

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