SAIC Motor to Build First Plant in Europe: 200 Million Euros for Galicia. Chinese automotive giant SAIC Motor will invest 200 million euros in building a factory in Galicia. This is the group’s first European plant, which will create 2,000 jobs and provide fresh momentum for Spain’s automotive industry.
SAIC Motor, owner of the MG brand, has officially announced the launch of a major automotive production facility in Galicia. The company will invest 200 million euros in building the plant, which will become SAIC Motor's first site on European soil. According to the plan, production will begin in 2028, with a capacity to manufacture up to 120,000 vehicles annually. The project is expected to create around 2,000 jobs and strengthen Spain's position as one of the key automotive hubs on the continent.
The choice of Galicia for the plant's location is no coincidence: the region has long attracted investors thanks to its developed infrastructure and access to European markets. MG emphasizes that this move is part of the 'En Europa, para Europa' strategy, aimed at localizing production and developing technology competencies within the EU. The new site will not only bring together vehicle assembly, but also research, engineering, and logistics departments, as well as the production of key components.
MG points out that establishing its own industrial cluster in Europe will enable a faster response to market demands, improve supply chain resilience, and accelerate the adoption of new technologies. The company is placing particular emphasis on collaboration with European tech firms, research centers, and local suppliers—with a focus on developing next-generation batteries, intelligent control systems, and clean energy solutions.
The head of MG in the UK and Europe, William Wang, emphasizes that the company aims to combine innovation, local production, and its own R&D centers to make sustainable mobility more accessible for European consumers. This approach is becoming especially relevant against the backdrop of stricter EU environmental standards and the accelerated transition to electric vehicles.
Industrial leap
The launch of the plant coincides with a period of rapid MG growth in the European market. This year alone, the company celebrated its one-millionth sale in Europe, and for several years MG has held leading positions among Chinese brands in Spain. Today, MG is present in 34 European countries through a network of more than 1,300 dealers, while its parent company, SAIC Motor, recently reached a milestone of 100 million vehicles sold worldwide.
MG's range in Europe is expanding rapidly: alongside popular models now come the MG4 Urban, the first seven-seat MGS Plug-in Hybrid, as well as the new MGS5, MGS6, and MG HS Hybrid+. The flagship MG Cyberster continues to demonstrate the brand's technological capabilities, combining the classic roadster design with a modern electric platform.
On the technology side, MG is betting on innovative solutions: in particular, the serial semi-solid-state SolidCore battery, which debuted in the MG4 Urban, as well as Hybrid+ hybrid systems and modern plug-in technologies to reduce emissions and improve efficiency.
Context and significance
SAIC Motor's decision to invest in Spain reflects the growing interest of Chinese automakers in the European market and intensifies competition in the electric vehicle segment. As russpain.com notes, other major players are taking similar steps: for example, BYD recently announced the launch of a unique insurance policy for its autopilot systems, increasing the pressure on the traditional industry leaders (more about BYD's new initiatives).
For Spain, the arrival of SAIC Motor means not only new jobs but also strengthens the country's status as one of Europe's main industrial hubs. If the project is completed on schedule, Galicia will receive a modern production facility that could become a driver for the development of related industries and local suppliers.
