SAIC Motor, the owner of the MG brand, plans to launch its first factory in the European Union. The facility is set to be built in Galicia, Spain, and is expected to create thousands of jobs. If the project receives all necessary approvals, production will begin before the end of the decade.
Chinese automotive companies are increasingly boldly strengthening their position in Europe. Now another one intends to move from exporting to local production. SAIC Motor, owner of brands including MG, Maxus, and Roewe, plans to build a car plant in Ferrol, a port city located in northwestern Spain.
The news of the project was announced on June 1 by Alfonso Rueda, president of the regional government of Galicia. As he emphasized, the autonomous community’s authorities have given the investment strategic priority. The initial value of the project has been estimated at approximately 200 million euros.
Photo credit: SAIC
Galicia beat out other locations
According to regional authorities, SAIC analyzed several potential sites for its European expansion. Ultimately, Galicia was chosen. The region’s industrial potential, well-developed manufacturing infrastructure, and the ability to quickly launch the project proved decisive.
The project involves the construction of an industrial zone in the port of Ferrol and the creation of an industrial and logistics center in the town of As Pontes de García Rodríguez. The scale of the investment is significant. In Ferrol alone, approximately 1,000 direct jobs are expected to be created, and a similar number of jobs may be generated indirectly in the surrounding area. An additional 300 people are expected to find employment at the planned logistics center.
According to the plans, approximately half of the direct jobs will be related to logistics, and the remainder to manufacturing. Another key element of the project is the use of components manufactured by local suppliers.
Production of up to 120,000 cars per year
The planned factory is to be built in phases. Upon completion of both phases, the plant will reach a production capacity of 120,000 cars per year. This scale could make Ferrol one of the most important locations on Spain’s automotive map.
For now, however, the project remains contingent on the fulfillment of several formal conditions. Obtaining a concession for port land and central government approval for foreign direct investment are of key importance. In Spain, such decisions are issued by the Council of Ministers.
The timeline presented by Alfonso Rueda calls for the permitting process to be completed by the end of 2026, with construction beginning a year later and the plant coming online in 2028.
MG is growing in Europe, Spain attracts further investments
SAIC’s decision is no coincidence. The MG brand remains the most popular Chinese automaker in the European Union and UK markets. In 2025, over 300,000 vehicles of this brand were registered there, representing a year-over-year increase of nearly 30 percent.
The results for the entire group look equally dynamic. In the first quarter of this year, SAIC Motor sold 973,000 cars across all brands. In the Chinese market, this amounted to 657,000 vehicles, 9.3% more than a year earlier. Overseas sales grew even faster—by 48.3%, to 325,000 cars.
Spain is becoming one of the main destinations for investments by Chinese automakers. In Barcelona, production of Chery vehicles is already underway in collaboration with the Spanish brand EBRO. Meanwhile, production of the Leapmotor B10 electric SUV is set to begin later this year at the Stellantis plant in Zaragoza.
