MG Considers Spanish BEV Plant to Escape European Tariffs

In response to proposed crippling European Union tariffs, Chinese automaker MG is considering opening a production plant in Spain.

The SAIC-owned brand is weighing the prospects of building its first battery-electric vehicle factory in the Galicia region so it can sell in European markets tariff-free, reports Spanish newspaper Europa Press.

Its sources claim the company is looking at confirming a decision by the end of September in expectation of beginning car production in the fourth quarter of 2027.

The report also says the company is considering other countries besides Spain for the plant, including Hungary or the Czech Republic, in light of labor costs and any support from regional authorities.

At the moment, SAIC-owned products could be facing the top EU rate of 37.6% on top of the existing 10% tariff charge if the bloc’s trade body, the European Commission, sees its recommendations ratified by the EU Parliament within the next four months.