Chinese owner of iconic MG car brand set to establish European manufacturing facility in 2023.
SAIC Motor, largest car manufacturer, has announced its plans to construct its inaugural factory in Europe. This decision comes in response to the substantial increase in sales of its vehicles on the continent. The state-controlled company, renowned for owning the iconic MG brand, aims to utilize the new manufacturing facility to produce electric cars.
Despite the forthcoming establishment of SAIC Motor‘s first European factory, a spokesperson has disclosed to the BBC that the car manufacturer has yet to finalize its decision regarding producing MG models at the site. MG, a brand with a history spanning over a century, was initially manufactured in the United Kingdom until the production operations were relocated to China in 2016.
As of Thursday, a representative from SAIC confirmed to the BBC that the company is actively engaged in securing a suitable location in Europe for its upcoming factory. Additionally, various aspects of the project are being finalized.
With multiple brands under its umbrella, such as MG, IM, and Maxus, SAIC determines which specific models will be manufactured at the facility.
SAIC has reported a remarkable surge in vehicle sales outside China, with a notable growth of 40% during the first quarter of this year.
This significant increase reflects the company’s success in expanding its market presence and attracting customers beyond its domestic borders. The rise in sales demonstrates SAIC’s growing popularity and the positive reception of its vehicles in international markets.
During the same period, SAIC highlighted that the MG brand played a pivotal role in most of its overseas sales, particularly in Europe. Notably, the number of MG cars sold in Europe more than doubled, exemplifying the brand’s remarkable performance and popularity in the region.
This surge in sales underscores the growing demand for MG vehicles and reaffirms the brand’s position as a critical player in the European automotive market.
Nearly seven years after SAIC discontinued MG assembly at the Longbridge plant in Birmingham, the recent announcement regarding establishing a European factory marks a significant development.
Back in 2016, MG declared that group in the UK was no longer necessary, and instead, cars would be imported fully built and ready for distribution. This decision signalled a shift in the manufacturing strategy for MG vehicles, emphasizing the transition to importing complete units rather than assembling them locally.
Established in 1906, the historic Longbridge plant significantly produced iconic cars such as MG and the original Mini. The site’s resilience was evident as it withstood the challenges posed by both World War One and World War Two, emerging as a symbol of strength and endurance.
In the post-war era, the Longbridge plant successfully navigated economic downturns and the rise of foreign competition in the motor industry. Its ability to withstand these challenges solidified its status as a renowned manufacturing hub with a rich heritage.
The Longbridge plant demonstrated resilience by bouncing back from various obstacles, including strike actions, mergers, takeovers, and declines in share value. Following the collapse of MG Rover in 2005, production at the plant ceased, but the brand eventually found a new owner in SAIC.
In 2011, the MG6, the first MG car to be assembled at Longbridge in 16 years, was launched. While the vehicle was designed in the UK, its components were manufactured in China, highlighting the collaboration between the two countries.
Over the years, Chinese automakers such as SAIC, Geely, and Great Wall have experienced significant growth in their market shares, further emphasizing their expanding presence in the industry.
The demand for electric vehicles and exports to Russia, driven by sanctions imposed on Moscow by Western countries following the invasion of Ukraine, has significantly contributed to increased exports from China. Official figures reveal that China exported over a million vehicles in the first quarter of this year, surpassing Japan and becoming the world’s leading car exporter.
In addition to its manufacturing plants in China, SAIC operates production facilities in Thailand, Indonesia, India, and Pakistan. With joint ventures alongside Volkswagen and General Motors, SAIC achieved global sales of 5.3 million vehicles last year. Europe emerged as its largest overseas market, with over 100,000 cars sold.
