SAIC chooses Spain for its first factory in Europe

Regional authorities have announced that Chinese auto group SAIC (MG, Maxus, etc.) will build its first electric car factory in Europe in La Coruña, in Spain’s Galicia region.

“The plan is to start construction of the site in 2027 and put the factory into operation before the end of 2028,” with a “production target of 120,000 vehicles per year,” regional president Alfonso Rueda said at a press conference.

2,300 jobs created

Alfonso Rueda told reporters that this project of the Shanghai-based SAIC company, with an “initial cost of 200 million euros”, should “create employment for 2,300 people”.

This announcement is one of the first of its kind in the world, particularly in Europe, for the full deployment of battery-powered vehicles in Spain, a country that relies heavily on renewable energies for its electricity mix.

In recent weeks, many Chinese car brands have confirmed their intention to produce in Europe to conquer the European market, facing the challenges faced by traditional manufacturers, especially German and French manufacturers.

In this context, on May 20, the French-Italian-American group Stellantis (Peugeot, Fiat, Opel, Jeep, Citroën, Chrysler, etc.) announced a memorandum of understanding with Dongfeng on the distribution of electric cars from this Chinese group in Europe and production at its factory in Rennes (35).

Spain calls out to Chinese investors

Other European manufacturers, such as Volkswagen, may also be tempted to open their factories to Chinese models. According to analysts, due to falling sales, factories in Europe have an average of 50% excess production capacity and some are at risk of closure.

During his visit to China in mid-April, his fourth visit to the country since 2023, Spanish Prime Minister Pedro Sánchez pressed Beijing to fix its “untenable” trade imbalance with the European Union, the world’s largest trading bloc and the second-largest economy on the planet, especially by “opening up” more.

Spain had a trade deficit of 42.3 billion euros with China in 2025. Analysts say the country’s appeal to Chinese investors is partly because its economy has one of the highest growth rates in Europe and energy costs remain relatively low. (with AFP)