Automotive News Europe — 2026-03-31
Automotive Industry
MG aims to leverage its century-old British heritage and ‘affordable, evolving technology’ to remain the best-selling Chinese brand in Europe. The SAIC subsidiary is positioning itself as a “local” player with ambitions to outperform rivals such as Volkswagen and Renault. MG has expanded rapidly since expanding from the U.K. to mainland Europe in 2020, increasing its European vehicle sales 26 percent to 307,282 in 2025, according to Dataforce research firm. In an interview with Automotive News Europe, MG’s Europe boss William Wang outlined how MG plans to sustain momentum — from local production to next-generation battery technology.
How will MG stand out as more Chinese brands enter Europe?
My boss asked the same question. I say, I have a European brand. Compared to other new OEMs, this brand has a greater value because it has a 100-year history. [SAIC acquired MG, a historic U.K. automaker, in 2007.] At the same time, we represent constantly evolving affordable technology. That is best backbone for our development. For example, we will launch semi-solid-state batteries this year [starting with the MG4 Urban small EV].
What advantage do semi-solid-state batteries give you?
The MG4 EV Urban in cold weather — even at minus 10 or minus 20 degrees — experiences less range loss than LFP batteries.
What other technologies are coming?
You will see more intelligent chassis systems, including continuously controlled dampers, as well as features such as brake-by-wire and drive-by-wire. We must also prepare for AI. I believe half the cars on the road could be autonomous in 10 years.
Can MG outperform established European automakers?
They are improving quickly. Volkswagen and Skoda are launching hybrids and VW’s ID electric models are strong. So, we must move faster. You have to outrun your rivals. You cannot sleep.
When will MG phase out combustion engines?
We follow customer demand. If customers want ICE cars, we will sell them. For me a hybrid is an ICE car, but a low CO2 one, so they remain part of the mix.
How important is pricing?
Customers care about affordability. Our brand is not strong enough to charge premium prices. I would rather see more MGs on the road than maximize profit per vehicle.
What are MG’s plans for European production?
We will build cars in Europe. At our current scale — around 300,000 European sales annually — it makes sense to localize. Production could start as early as next year, depending on how quickly we finalize plans.
Where will the plant be located?
It will be in the European Union to avoid tariffs. We have a shortlist, but the decision must be right — taking into consideration suppliers, government support and long-term viability.
Would you use an existing plant?
It’s hard to find such a factory. There’s a lot of free capacity, but the owners don’t necessarily to want to share with us. Politically, it’s hard.
Will local production increase costs?
Yes, significantly. Labor and parts are more expensive in Europe, and logistics are complex. That means we must elevate the brand and offer more value and not compete purely on price.
Could you leverage SAIC’s partnership with VW in China where they have a joint venture to build MG cars in a VW European factory?
It’s very tricky. There’s lot of politics behind it that is beyond my pay grade.
Would production start with CKD kits?
You always need to balance the speed. So probably we would do it step by step. We need to sort out the battery, the high value parts, the supply chain.
Which models would you build?
The first priority should be electric because of the EU tariff.
Does the battery need to be produced in Europe?
Depending on the rules of origin, it’s a hard question. But we have good connections with all the Tier 1 suppliers. We have [SAIC owned} Yangfeng in the EU, which makes parts such as cockpit and bumpers.
How much more would cars built in an EU plant cost?
A lot. It depends on location and the depth of manufacturing but in Europe, the prices for parts are higher, labor costs will be higher. Some parts will be from China, some parts will be from other countries. And some parts, such as bumpers, you must make locally. It will be more expensive. To build in Europe, you need to uplift your brand. You cannot sell on price.
How do you uplift the brand to cover the cost?
You need to pick the right product to be built in the right place. Of course, the cost will be higher, but you need to always add value to your car, to your brand. You probably need some high technology cars, and some volume cars depending on the mix.
Is local production worth it given the higher costs?
Strategically, yes. It helps us respond faster to market changes and strengthens our position as a local brand. The EU’s tariffs [on Chinese BEV imports into Europe] have accelerated the decision, but the goal was always localization.
If you sell 400,000 cars, it makes sense to build local. We want to be seen as a local but also source globally. For example. Nissans sold in Europe are not all built in the company’s plant in Sunderland, England. Some of them come from Japan. If we build the right model, with the right mix and the local content, then we can put more value on locally produced models.
Do you support minimum pricing for Chinese BEV exports to the EU instead of tariffs?
No. It goes against free-market principles. Prices should be set by customers and competition, not controlled.
The U.K. accounts for a quarter of your European volume. Is Germany the next key market?
Germany is more competitive than the U.K. but also offers growth potential. If we deliver strong value and technology, customers will come. We learn from partners such as Volkswagen [SAIC has a China joint venture with VW] but ultimately, the student wants to surpass the teacher.
How large will MG’s lineup become?
Within two years, we will expand to about 17 or 18 models from 11. That will include everything from small cars to large SUVs, across ICE, hybrid, plug-in hybrid and fully electric powertrains — plus niche models such as the Cyberster sports car.
We have launched a large plug-in hybrid SUV [the S9] and by the end of next year we will have a small electric car. We hope to show a concept car for the small EV in July at the Goodwood Festival of Speed.
Is MG profitable in Europe?
To make our cars affordable, we cannot aim for a high contribution margin. My priority is the customer getting a good deal. The second is ensuring our dealer network is profitable.
When do you expect stronger returns?
We have a positive contribution margin on some models, but EVs are still negative. Our parent company understands this is a long-term effort. If you ask me to sell 500,000 cars, I can do it — but it might mean a loss of 1 billion RMB (€126 million). It’s a balance. Margins are very thin and tariffs add another challenge.
MG initially struggled in the U.K. What changed?
Our first car was the TF sports car, which generated a lot of interest, but it was niche and we sold only several hundred to MG believers. Then we launched the MG6 large sedan. It’s 4.6-meters long so it was not a great fit for the market. The turning point came with the MG3 small hatchback, which allowed us to reach a broader audience. From there, we focused on B- (small) and C-(compact) segment cars and SUVs. Once the product, price and positioning aligned, customers responded.
Are you considering new sales models?
We are open to agency or direct sales, but for now we prefer a stable, mature approach. Customers still value physical showrooms — the human interaction matters.
Are you a fast follower or a leader?
In vehicle technology, we aim to lead. But in other areas, we don’t take unnecessary risks. The strategy is simple: give customers what they want — good technology at a good price.