SAIC Motor, China's principal automobile manufacturer, has declared plans to establish its first production facility in Europe, following a substantial uptick in its vehicle sales across the continent. This development comes in the wake of an impressive 40% increase in its foreign vehicle sales in the first quarter of the year. The state-owned conglomerate, which currently holds the renowned MG brand under its corporate umbrella, has mentioned that the forthcoming plant will be primarily focused on the production of electric vehicles.
Although the MG brand has been a significant contributor to SAIC's overseas sales, with a doubling of European sales reported for the same period, it is yet to be determined if the brand's models will be produced at the new plant. The announcement arrives nearly seven years after SAIC ceased the assembly of MG at the Longbridge factory in Birmingham, moving the production to China in 2016.
SAIC spokesperson indicated that the choice of brands for the factory - which include MG, IM and Maxus - is still under consideration, as is the selection of the location in Europe and other specifics of the project.
The history of MG, dating back over a century, includes its assembly at the Longbridge plant in Birmingham, which survived both World Wars, post-war economic depression, and multiple industry challenges. However, following the collapse of MG Rover in 2005, production was paused, and the brand was subsequently acquired by SAIC.
The recent surge in demand for electric vehicles and exports to Russia amid western sanctions has led to a significant increase in the global market share of Chinese carmakers like SAIC, Geely, and Great Wall. The first quarter of the current year saw over a million vehicle exports from China, pushing the nation ahead of Japan as the largest global car exporter.
Operating in collaboration with US automaker General Motors and Germany's Volkswagen, SAIC has production units in China, Thailand, Indonesia, India, and Pakistan. The company successfully sold over 5.3 million vehicles worldwide last year, with Europe contributing significantly as its largest foreign market with over 100,000 vehicles sold.