MG has announced plans to establish its first mainland European manufacturing facility in Galicia, Spain, marking a major milestone in the brand’s global expansion strategy and signalling its ambitions beyond its traditional manufacturing base in China.
The new facility will be developed with an investment of approximately €200 million (around A$350 million) and is expected to create more than 2,000 jobs across Europe. Production is scheduled to begin in 2028, with annual capacity reaching up to 120,000 vehicles.
The announcement forms part of MG’s broader “In Europe, For Europe” strategy, which aims to increase local manufacturing, strengthen supply chains and accelerate the development of vehicles tailored to European markets.
For Australian buyers, the move highlights the growing scale of a brand that has rapidly become one of the country’s most popular automotive manufacturers, with strong sales across both traditional petrol-powered vehicles and electric models.
New facility to combine manufacturing and research
According to MG, the Spanish site will serve as a comprehensive automotive hub rather than a conventional vehicle assembly plant.
The facility will integrate:
- Vehicle research and development
- Advanced manufacturing operations
- Core component sourcing
- Intelligent logistics systems
MG says bringing these functions together will create a fully connected industrial ecosystem capable of supporting future growth while improving supply chain resilience and responsiveness.
The company also plans to deepen collaboration with European technology companies, research institutions and suppliers to accelerate innovation in several key areas, including battery technology, intelligent mobility systems and clean energy solutions.
Supporting Europe’s shift towards electrification
The investment comes as Europe’s automotive industry continues preparing for stricter emissions regulations and the European Union’s goal of achieving zero-emission new vehicle sales by 2035.
MG says localised production and increased investment in research and development will allow it to respond more effectively to changing consumer demands while supporting the region’s transition towards electrified mobility.
The move also follows a broader trend among global carmakers, many of which are increasing local manufacturing capacity in major markets to reduce supply chain risks and improve access to key technologies.
Why does the announcement matter for Australia?
Although the Spanish factory is expected to supply European markets rather than Australia, the announcement remains significant for local consumers.
MG has become one of Australia’s fastest-growing automotive brands in recent years. Models such as the MG3, MG ZS, MG HS and MG4 have helped the company establish a strong presence across multiple market segments, while its expanding EV and hybrid lineup continues to attract new buyers.
Australian-market MG vehicles are currently sourced from China, and the company has not announced plans to source local vehicles from Spain. However, increased manufacturing capacity in Europe could help diversify MG’s global operations and reduce pressure on its existing production network.
The investment also demonstrates MG’s long-term commitment to electrification, an area that is becoming increasingly important in Australia as buyers consider alternatives to traditional petrol and diesel vehicles.
MG continues to expand its EV and hybrid portfolio
Alongside the manufacturing announcement, MG highlighted several technologies and products that form part of its future growth strategy.
The company recently introduced what it describes as the world’s first mass-produced SolidCore semi-solid-state battery, a technology designed to improve battery performance and energy density compared with conventional lithium-ion battery packs.
MG also continues to expand its range of hybrid and electrified vehicles through its Hybrid+ and plug-in hybrid technologies.
Recent additions to the brand’s global lineup include:
- MG4 EV Urban
- MGS5 EV
- MGS6 EV
- MG HS Hybrid+
Meanwhile, the MG Cyberster remains the company’s flagship performance EV, combining classic roadster styling with modern electric powertrain technology.
Many of these technologies and future vehicle developments could eventually influence products offered in Australia as MG continues expanding its local lineup.
Major milestones for the MG brand
The factory announcement follows several major achievements for the company across Europe and globally.
Earlier this year, MG celebrated the delivery of its one-millionth vehicle in Europe, underlining the rapid growth it has experienced since returning to the UK market in 2011.
The brand now operates across 34 European markets and is supported by a network of more than 1,300 dealer partners.
MG’s parent automotive group also recently delivered its 100-millionth vehicle globally, highlighting the scale and reach of the wider organisation as it continues expanding into international markets.
Looking ahead
The new Spanish facility represents one of the most significant investments in MG’s modern history and marks the first time the brand will manufacture vehicles on mainland Europe.
While Australian buyers are unlikely to see immediate changes as a result of the announcement, the investment reinforces MG’s ambitions to become a truly global automotive manufacturer. Through expanded manufacturing capacity, increased research and development, and continued investment in electric and hybrid technologies, the company is positioning itself for long-term growth in Europe and beyond.
With production scheduled to begin in 2028, the Galicia facility is expected to play a key role in MG’s future plans while supporting the next generation of electrified vehicles that could eventually make their way to Australian showrooms.
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