SAIC confirms plans to build electric MGs in Europe

SAIC Motor confirmed that it plans to build vehicles, including electric cars and light trucks, for the MG brand in Europe. 

With MG’s increasing sales in the European market, “SAIC Motor is planning to introduce China's new energy technology and green factories to Europe,” the state-owned company said in a statement  June 13, without elaborating on the plan.

SAIC disclosed the information after the European Commision said on June 12 that it will increase tariffs on Chinese-built battery-electric cars exported to Europe.

SAIC stands to be hit the hardest among automakers exporting to Europe from China after the EU said the state-run company was uncooperative with its investigation into China's state subsidies.

SAIC will pay extra tariff of 38.1 percent on top of the existing EU tariff of 10 percent, which means that company will end up paying 48.1 percent on EVs exported to Europe.

The automaker said the Commission's decision "not only violates the principles of market economy and international trade rules, but may even have a great adverse impact on stability of the global automotive industry chain and China-EU economic and trade cooperation."

Before the Commission's tariff announcement, SAIC had said it will make a decision on European production within two to three years and will pick a location based on energy and labor costs.

Among Chinese automakers, SAIC is the largest exporter to Europe. In the first five months, it delivered more than 100,000 MG cars, including BEVs, in the European market, the company said. 

In 2005, Nanjing Auto, a state-owned Chinese automaker, purchased MG from bankrupt U.K. automaker MG Rover. Two years later, Nanjing Auto was acquired by SAIC.

MG operates plants in China, Thailand and India. 

SAIC still owns part of the former MG Rover factory complex in Longbridge, England, although the assembly areas were sold for housing in 2021.