11:22 07-05-2026

MG Parent SAIC Plans Electric Vehicle Plant in Ferrol, Spain

MG parent SAIC is planning an EV factory in Ferrol, Spain, with 120k annual capacity. The plant could produce the MG2 and bypass EU tariffs on Chinese EVs.

MG's parent company SAIC is edging closer to manufacturing its own electric vehicles in Europe. Spanish media reports point to Ferrol, in the Galicia region, as the frontrunner for a new plant with an annual capacity of around 120,000 cars. While no final decision has been made, the proposal is already being discussed with regional authorities and industrial infrastructure providers.

Although no final decision has been reached, the project appears to be well past the rumor stage. La Tribuna de Automocion reports that the planned facility would have an annual output of roughly 120,000 vehicles. That’s modest by Chinese standards, but for MG in Europe it would be a vital foothold.

Galicia's stock rose after regional president Alfonso Rueda traveled to China and met with SAIC's top brass. For Ferrol, making the project happen would require upgrading its port and industrial facilities.

There are also some practical hurdles. For the plant to get the green light, the port of Ferrol would need to be adapted—and that includes relocating a company called Windwaves, which makes components for floating wind turbines and currently occupies an eight-hectare site.

Spain makes sense for SAIC on multiple levels. The region already boasts a strong automotive supply chain, anchored by the Stellantis plant in Vigo, which ensures a ready pool of suppliers and skilled workers. Chinese brands are also increasingly targeting Spain for its relatively low labour and energy costs—a trend reinforced by the country’s growing renewable energy capacity. Chery has already moved in through the EBRO project, while Stellantis relies heavily on Spain as part of its European manufacturing network.

The new site is likely to launch with the MG2, a compact electric hatchback MG plans to introduce in 2027. Smaller than the current MG3, it is squarely aimed at Europe’s B‑segment, where an intense contest is already taking shape among the Citroën e-C3, FIAT Grande Panda, Renault 5, and the upcoming Volkswagen ID. Polo.

A design study of the MG2 is due at the 2026 Goodwood Festival of Speed. Building the car in Spain would allow SAIC to circumvent the European Union’s protective tariffs on Chinese-assembled EVs. Other models, including the upcoming MG4 Urban, still look set to be imported.

MG is upfront that making cars in Europe costs more. Regional boss William Wang points out that the brand will have to rely on its image and perceived value, rather than low prices, because production costs will inevitably be higher.

For prospective buyers, that means MG probably won’t be dirt cheap. But it will aim to preserve what it does best—offering a lot of car for a sensible price.