Chinese automaker MG Motor is seeking to further expand its reach with plans to establish a new production plant and R&D center in Mexico, Reuters reports.
MG Motor bets big on Mexico
MG Motor announced plans on Wednesday to invest in a new vehicle production factory and R&D hub in Mexico as it seeks to gain valuable insights into the Latin American market.
MG Motor México President Zhang Wei emphasized that the investment will enable the former British brand to “not only produce vehicles, but to also produce market intelligence specifically designed for and by Latin America.”
However, the now SAIC Motor-owned brand has not yet revealed the investment size and project timeline.
MG Motor is undoubtedly making significant strides in its Mexican operation. It reportedly sold a total of 150,000 vehicles in the local market in just four years since penetrating the country. For context, the brand sells internal combustion engines (ICE), battery-electric (BEV), and hybrid vehicles (HEV).
“Looking to the future, we’re excited to announce plans to establish Mexico as a hub for Latin America. This includes not just a manufacturing plant, but also a research and development center.”
MG Motor México President Zhang Wei
Leveraging Mexico to expand in Latin America
MG Motor announced that the planned vehicle production plant would enable it to establish Mexico as a “pole for growth and expansion” for its parent company and the brand itself in Latin America and the Caribbean.
While the announcement did not mention the United States, MG Motor revealed that sister brand IM may also penetrate the Mexican market.
MG Motor has yet to disclose more specific details about the planned new production plant and R&D hub, including which models for which markets. However, El Economista newspaper claims the plant will rise in central Mexico or the Bajío region. It also disclosed that the facility will have an initial annual production output of 100,000 units.
For context, MG Motor is already present in the Mexican market as it sells several models like the all-electric MG4 and the MG3 hybrid.
Potential entry into the US
MG Motor is not the only foreign automaker planning to build local factories in Mexico, which is the United States’ largest trade partner.
However, Reuters reported earlier this year that the US government is pushing the Mexican authorities to withdraw incentives to Chinese players planning to build local factories there.
It would be interesting to see if MG Motor would also export its upcoming Mexican-made EVs to the US, potentially enabling it to evade the 100% tariff set against Chinese EV imports.
