MG Sets Up in Spain: The New Eldorado for Chinese Manufacturers

MG is set to build its first factory in continental Europe in Spain. Following Chery, Leapmotor, and CATL, the choice of Galicia confirms the spectacular attractiveness of the country to the Chinese automotive industry.

Is Spain becoming the new promised land for Chinese car manufacturers in Europe? MG’s decision adds another argument. Owned by the Chinese giant SAIC Motor, the brand has just announced the establishment of its first factory in continental Europe in Galicia.

The announced investment is around 200 million euros, with more than 2,000 jobs at stake. Production is set to begin in 2028 and could reach 120,000 cars per year. MG does not intend to simply create an assembly site: R&D, manufacturing, component supply, and logistics are to be gathered within a true industrial ecosystem.

MG joins Chery and Leapmotor in Spain

This decision is far from isolated. Chery has already chosen Barcelona to develop its industrial presence in Europe in partnership with Ebro, on the former Nissan site in the Zona Franca.

Leapmotor, in partnership with Stellantis, is also betting on Spain. The Chinese manufacturer is set to produce its electric SUV B10 in Figueruelas, near Zaragoza. In the same region, CATL and Stellantis are developing a gigantic battery factory.

In just a few years, Spain has managed to attract several major players from the Chinese automotive industry, with a particularly impressive concentration around Barcelona, Zaragoza, and now Galicia.

Why are Chinese manufacturers choosing Spain?

Spain has serious advantages: a historically strong automotive industry, a significant network of subcontractors, an experienced workforce, efficient logistics infrastructure, and existing production capacities.

Producing locally also allows Chinese brands to bring their cars closer to the European market and limit their exposure to the tariffs imposed by the European Union on electric cars made in China.

This movement is therefore much broader than just the case of MG. As Chinese manufacturers now seek to produce directly on the Old Continent, Spain is carving out a lion’s share.

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With MG in Galicia, Chery in Barcelona, Leapmotor, and CATL around Zaragoza, a new map of the European automotive industry is being drawn. And Spain could well be one of the big winners.