Automitive News Europe — 2024-08-08
Automotive Industry
MG Motor plans to build a manufacturing plant and a research and development center in Mexico. The move would allow MG to "not only produce vehicles, but to also produce market intelligence specifically designed for and by Latin America," country head Zhang Wei said in a statement on 7 August.
MG did not say how much it plans to invest or provide a construction timeline.
A Mexico plant would continue the global expansion of the former British brand, now owned by China's SAIC Motor Corp.
MG operates plants in China, Thailand and India and has said it plans to open a factory in Europe, where it is the best-selling Chinese brand with sales of 127,425 in the first six months, according to figures from market researchers Dataforce.
MG said a Mexico plant would be "a pole for growth and expansion for SAIC Group and MG Motor in Latin America and the Caribbean."
It did not mention the US, but added that sister brand IM, a luxury electric-vehicle line, also plans to enter the Mexican market.
MG would join other electric-vehicle makers with plans to build plants in Mexico, the United States' largest trade partner, such as China's BYD and Tesla, although Tesla recently put its plans on hold.
BYD has said the Mexico plant will not serve the US market.
Tesla CEO Elon Musk has paused plans for a Mexico gigafactory to see if Republican candidate Donald Trump wins November's presidential elections, as the former president has said he would levy heavy tariffs on EVs made in Mexico.
In April, Reuters reported that Mexico's federal government, under pressure from the US, would no longer offer incentives to Chinese automakers to invest. In May, US President Joe Biden rolled out steep tariff hikes on Chinese EVs.