According to a Reuters report on August 8, MG Motor announced plans to establish a manufacturing plant and a research and development (R&D) center in Mexico, positioning Mexico as a market hub for Latin America.
Zhang Wei, head of MG Motor Mexico, stated in a press release, "This move will not only allow us to produce vehicles locally but also gather market intelligence across Latin America." MG's goal is to "make Mexico the center of growth and expansion for SAIC Motor and MG Motor in Latin America and the Caribbean." However, MG did not disclose the investment amount for the project in Mexico, nor did it provide a specific timeline for the construction.
The new plant in Mexico will further MG's global expansion efforts. MG currently has plants in China, Thailand, and India and has previously announced plans to open a plant in Europe. According to market research firm Dataforce, MG is the best-selling Chinese car brand in Europe, with sales of 127,425 units in the first half of this year.
However, the timing of MG's efforts to increase its localization in Mexico is not ideal. In April of this year, Reuters reported that, under pressure from the United States, the Mexican federal government would no longer provide investment incentives to Chinese automakers. Additionally, former U.S. President Donald Trump has stated that if he is elected the next U.S. president, he will impose a 100% tariff on imported Mexican-made Chinese cars.
As a result, Tesla, which had previously planned to build a Gigafactory in Mexico, announced that it has paused the plan and will reassess its investment in the new Gigafactory in Mexico after the U.S. election.
MG did not mention the U.S. market in its latest plan but added that its sister brand, IM Motors, also plans to enter the Mexican market.
