MG to build cars in Europe again with €200 million Spanish plant

Key takeaways

• MG European factory in Spain to open 2028
• Roughly €200 million investment creating more than 2,000 jobs
• Annual capacity of up to 120,000 vehicles

MG is returning to European manufacturing for the first time in nearly a decade.

The SAIC-owned brand has confirmed its first MG European factory on the mainland, a roughly €200 million site in Galicia in north-west Spain. Production is scheduled to start in 2028.

It marks a major shift for a brand that built its last European cars at Longbridge in the UK before that plant wound down in 2016. Since then, every MG sold around the world has come out of China or Thailand.

Inside MG's new European factory

The Galicia site will combine research and development, vehicle production, core component supply and logistics on one campus. MG says it will run as a single connected operation rather than just an assembly line, with capacity to build up to 120,000 cars a year once it ramps up.

Construction is expected to begin in 2027, with the first vehicles rolling off the line before the end of 2028.

MG has not said which models it will build there, though battery-electric vehicles look the most likely candidates given where demand and regulation are heading.

Why MG is building in Europe

The move is about more than growth. SAIC has been hit hard by European tariffs on Chinese-built EVs, facing a combined import duty of 45.3%. That figure stacks the standard 10% tariff on top of an extra 35.3% levy aimed squarely at Chinese electric cars.

Building locally lets MG sidestep much of that cost and shorten its supply chain into one of its biggest markets. The investment sits under the brand's "In Europe, For Europe" strategy.

"By investing in local capabilities, a stronger European presence and a more competitive automotive ecosystem, we are accelerating Europe's path towards a smarter and more sustainable mobility future," said MG Europe managing director William Wang.

The timing lines up with the European Union's 2035 zero-emissions targets, which are pushing every brand selling in the region to localise and electrify.

What it means for Australia

Not much changes here, at least directly.

MG cars sold in Australia are built in China and Thailand, and the Spanish plant is there to supply Europe. Local pricing and supply are unaffected for now.

Still, it signals where MG is heading. The brand has become one of Europe's fastest-growing, delivering its one-millionth European vehicle earlier this year, while parent SAIC has now passed 100 million customer deliveries globally.

That scale is the same engine behind MG's rapid rise in Australia, where it has climbed into the top handful of best-selling brands on the back of cars like the MG4 and ZS.

A European production base only strengthens a brand Australian buyers are already taking seriously.

Frequently asked questions

Where will MG build its new European factory?

In Galicia, north-west Spain. It is MG's first manufacturing facility on mainland Europe.

When will MG's European factory start production?

Construction is expected to begin in 2027, with production scheduled to start in 2028 at up to 120,000 vehicles a year.

Will MG cars sold in Australia be built in Spain?

No. Australian-delivered MGs are built in China and Thailand. The Spanish plant is intended to supply the European market.