MG has announced it’s returning car production to Europe after nearly two decades with a €200 million factory investment in Spain.
The Sino-British brand will establish its new facility in Galicia as part of what it calls an “In Europe, For Europe” strategy. The factory will support 2,000 jobs across the local area and wider European region.
MG closed its previous European manufacturing site at Longbridge, Birmingham in 2005 when China’s SAIC acquired the struggling MG Rover marque.
Since then, all MG vehicles have been manufactured in China – including its expanding lineup of electric models.
The Spanish facility will house research and development operations alongside manufacturing and component supply capabilities. MG says the move will help localize both vehicle development and production for European markets.
William Wang, MG’s managing director for the UK and Europe, said the investment aims to make mobility more accessible across the region.
“Through our ‘In Europe, For Europe’ strategy, we are not simply responding to the future of mobility – we are helping define it. By investing in local capabilities, strengthening our European footprint and fostering a more competitive automotive ecosystem, we are accelerating Europe’s journey towards a cleaner, smarter and more sustainable mobility future.”
Production Timeline and Capacity
The factory is scheduled to begin operations in 2028. At full capacity, the facility will produce 120,000 vehicles annually.
The move will also help MG avoid current EU tariffs on cars imported from China – a significant cost advantage for the brand’s European operations.
MG hasn’t specified which models will roll off the Galicia production line. However, the company says the site will bring its “world-leading” technologies to Europe and serve as a development hub for next-generation battery technology.
This could include MG’s SolidCore semi-solid-state battery, which is set to be fitted in the MG4 Urban. The facility might also handle production of the compact MG2, expected to launch within the next 18 months.
Broader Industry Trend
MG isn’t alone in pursuing this European production strategy among Chinese automakers.
BYD recently announced similar plans and will begin manufacturing the Dolphin G hybrid in Hungary later this year. Meanwhile, Stellantis is preparing to build vehicles for its Chinese partners Leapmotor and Dongfeng at existing European plants.
The trend reflects growing pressure from EU trade policies and the desire to establish stronger footholds in the European electric vehicle market.
