The next MG factory could be located in Aragón, according to the Chinese ambassador

European Commission tariffs on electric vehicles from China have led Yangtze manufacturers to consider locating their assembly lines in the Old Continent.

This has already happened with the Chery group, which will assemble its Omoda and Jaecoo in Barcelona, using Nissan's former facilities. BYD has already stated that it intends to build a new plant in Hungary; Leapmotor, from the Stellantis group, will do so in Poland and Zeekr, from the Geely Group, is considering using some of the locations of other brands within its parent company, such as Volvo.

Europe is trying to protect its automotive industry against a rival that has an advantage in zero-emission technology development. However, buyers do not seem very interested in this type of propulsion and last August saw the biggest decline in electric car sales since 2017, with 36% less.

Therefore, it has carried out plans to incentivize the industrialization of its member states, thanks to the Next Generation Funds, an investment mechanism to boost the economy after the Covid-19 pandemic. Thanks to these funds, Spain established Volkswagen Group's battery gigafactory in Sagunto and Chery began production in Barcelona.

In contrast, Brussels has also imposed tariffs of up to 37.6% additional to the 10% already paid by Chinese electric cars. Both blocs are negotiating before the vote to make them definitive, which requires opposition from two-thirds of the member states.

In Spain, Chinese ambassador Yao Jing stated that there is a possibility that SAIC Group's first factory – parent company of MG and the one most severely affected by European Commission tariffs – will be installed in Aragón.

From his point of view, Zaragoza presents great appeal for energy and automotive companies, he noted at a scientific and technological cooperation event in the city. "If Aragón is interested in having this factory, we will talk about it," he said.

One of Spain's strengths is that it is consolidating itself as a producer of electric vehicles and companies related to zero emissions are joining its extensive auxiliary industry. Logistically, it is well connected with Atlantic and Mediterranean ports and close to the United Kingdom, a key market for MG.

However, our country's rivals are Hungary and the Czech Republic, better connected with the rest of Europe through railways and with considerably lower labor costs.

The manufacturer's plans include selling 250,000 units in the EU market in 2024 – by August they had sold 161,059 units, up 16% – which would legitimize their decision to produce there. The decision, according to Europa Press, will be made before the end of September.