MG will make a decision by September 30, targeting the fourth quarter of 2027 to produce its first vehicle at the European plant, according to a report in Spanish media outlet Europa Press.

SAIC Motor Corp's MG brand is considering building its first electric vehicle (EV) plant in Europe in Galicia, Spain, to produce EVs for sale to different European markets, Europa Press said in a July 12 report, citing company sources.

MG will make a decision by September 30, targeting the fourth quarter of 2027 to produce its first vehicle at the European plant, according to the report.

In addition to Spain, SAIC is also considering locating the plant in other countries, such as Hungary or the Czech Republic, where labor costs are lower, the report said.

One of the main goals of MG's decision to build a plant in Europe is to avoid tariffs on EVs imported from China into the EU market, the report noted.

On October 4, 2023, the European Commission officially launched a countervailing investigation into imports of EVs originating in China.

On June 12, the European Commission pre-disclosed the level of provisional countervailing duties to be imposed on imports of battery electric vehicles (BEVs) from China, with SAIC, including the MG brand, facing the highest rate of 38.1 percent.

On July 4, the European Commission announced that it would impose the additional tariffs from July 5, at slightly lower rates than previously announced, with the SAIC rate at 37.6 percent.

These tariffs are in addition to the original 10 percent rate.

On July 5, SAIC asked the EU to hold a hearing on the additional tariffs, claiming that the countervailing investigation was unreasonable and erroneous.

MG also released a statement on July 5 saying it strongly opposed the EU's decision, saying it went against the principles of fair competition and free trade.

The MG brand will face up to the challenges of the EU market and possible fluctuations in sales and will insist on doing the right thing, it said in the statement.

In a report today, Reuters cited government sources as saying that Italy and Spain support EU import tariffs on China-made EVs. The EU's 27 member states have until midnight on Monday to take a position on the matter.

Germany will abstain, the Reuters report said, adding that Greece had not yet taken a position as of Saturday.

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