MG’s success prompts a possible European return
SAIC Motor Corp Ltd (formerly Shanghai Automotive Industry Corporation) the largest state-owned car maker in China, has recently announced its plans to construct its first factory in Europe due to a significant increase in vehicle sales on the continent.
The state-owned company, which known for owning the renowned MG marque, intends to focus on manufacturing electric vehicles at the new facility.
However, a spokesperson has stated that SAIC has not yet decided on whether they will produce MG models at this location.
Morris Garages a British Icon
It’s worth noting that MG, (Morris Garages)a well-established brand with a history spanning more than a century, produced in the UK but has since relocated to China as of 2016.
Even so, the car designs continue to originate from the UK, giving hope that this may well be a factor when choosing a production hub.
SAIC has announced that they are currently working on a new project and are in the process of securing a suitable location in Europe. To continue the MG success.
The company has multiple brands, including MG, IM, and Maxus, and is currently considering which one to produce at the new factory.
According to a spokesperson, their vehicle sales have experienced a 40% increase in the first quarter of this year outside of China. The company said the MG brand accounted for the majority of overseas sales, as the number of cars sold in Europe more than doubled in the same period.
It’s been nearly seven years since MG ceased production at the Longbridge plant in Birmingham. MG determined that manufacturing in the UK was no longer necessary and decided to deliver fully assembled cars for distribution. in late 2016
2005 saw production at the plant came to a halt due to the collapse of MG Rover, which SAIC later acquired. In 2011,MG launched the MG6. It was the first MG car in 16 years to be assembled at Longbridge.
Although the UK designed the vehicle, its parts were manufactured in China.
China EV boom
It’s interesting to note that Chinese carmakers, such as SAIC, Geely, and Great Wall, have seen a growth in their market shares in recent years.
The rise in demand for electric vehicles has contributed to China’s exports, despite some Western countries imposing sanctions on Moscow.
Official figures reveal that China has exported over a million vehicles in the first quarter of this year, making it the world’s largest exporter of cars, surpassing Japan.
SAIC has also expanded its production facilities beyond China, with plants in Thailand, Indonesia, India, and Pakistan.
The Chinese firm, which has joint ventures with German motor giant Volkswagen and US carmaker General Motors, sold 5.3 million vehicles globally last year.
SAIC said Europe was its largest overseas market, with more than 100,000 vehicles sold.