BEIJING: SAIC Motor, China’s largest automobile manufacturer, has announced plans to establish its inaugural factory in Europe following a substantial increase in vehicle sales on the continent.
The state-owned company, renowned for its ownership of the esteemed MG brand, intended to focus production at the new facility on electric vehicles, although the inclusion of MG models is yet to be confirmed.
Dating back over a century, MG was originally manufactured in the United Kingdom until production was relocated to China in 2016.
A spokesperson of the company said that the firm is presently in the process of securing a suitable European site for the factory, while also finalizing other critical aspects of the project, BBC reported.
He said that the company has many brands including IM, MG, and Maxus. But it is still deliberating which of these would be produced at the factory.
According to SAIC, vehicle sales outside of China experienced a remarkable 40% surge in the first quarter of this year. Notably, the MG brand spearheaded overseas sales, with the number of cars sold in Europe more than doubling during the same period. This recent announcement arrives almost seven years after SAIC ceased MG assembly operations at the renowned Longbridge plant in Birmingham.
Historically, the Longbridge facility, established in 1906, weathered numerous challenges, including the post-war economic depression, the rise of the global motor industry, strikes, mergers, takeovers, and fluctuations in share value. However, production at the plant came to a standstill following the collapse of MG Rover in 2005, ultimately leading to SAIC’s acquisition of the brand.
In 2011, Longbridge witnessed the launch of the MG6, the first MG car to be assembled at the plant in 16 years. Although the five-seater vehicle was designed in the UK, its components were manufactured in China.
Chinese automakers witness substantial market share growth
Chinese automakers, such as SAIC, Geely, and Great Wall, have witnessed substantial market share growth in recent years. China’s exports have been bolstered by the demand for electric vehicles and sales to Russia, as Western nations imposed sanctions on Moscow following the Ukraine invasion. Official figures indicate that China exported over a million vehicles in the first quarter of this year, propelling it to the position of the world’s largest exporter of cars, surpassing Japan.
Apart from its manufacturing plants in China, SAIC operates production facilities in Thailand, Indonesia, India, and Pakistan. The Chinese firm, boasting joint ventures with renowned German automotive giant Volkswagen and American car manufacturer General Motors, achieved global sales of 5.3 million vehicles last year. Notably, Europe emerged as its largest overseas market, with over 100,000 vehicles sold, according to SAIC.
