To get around European customs duties regarding the importation of electric cars from China, MG chose, like Byd, to set up in Europe. If the location this factory has not yet been announced, a trend is emerging.
35.5 % additional customs duties, in addition to the 10 % already acted previously, it is the European legislator’s award towards the Sino-British manufacturer. MG is the most sanctioned brand of all those concerned, since the increase in customs duties is on average about 20 % since their establishment at the end of last year.
This is explained by the “Low collaboration” (Dixit the European Commission) of the SAIC group during the investigation for the implementation of these additional taxes, taxes that MG obviously judges completely unfair.
MG adapts to European market fluctuations
To get around these costs, but also to overcome the increase in the increase in electric car sales in Europe, MG has read its catalog. The brand presented more hybrid models last year than electric cars, especially with the new ZS and MG3 Hybrid+.
But in 2025, MG will reconnect with the electricespecially with the arrival of MGS5 and the new MG4. Always made in China, these cars will therefore be logically taxed, and it is the final price that will be impacted. But like Byd, MG intends to install a factory in Europe to make its cars.
As stated in a previous subject, it will certainly not be in France, the relations between the (previous) government and the manufacturer not necessarily being beautiful, especially since the bonus was abolished to Chinese electric cars in 2024.
Spain would hold the right end
According to information relayed by Automotive News Europe, MG could announce the location of its new factory in Europe by summer. This could be functional by the third quarter of 2027.
According to the first rumors, This factory should be in Spainand more specifically on the side of Galicia, between Vigo and La Corogne, where a factory of the Stellantis group has also been installed since 1958 where several models from Peugeot, Citroën, Opel and even Toyota, Stellantis technical partner are produced.
Even if Spain seems to hold out, MG also studies some possibilities in Hungarylike Byd, or in the Czech Republic, where the workforce is cheaper.
The advantage of Spain compared to these countries, It is its geographic proximity to the main European marketsincluding the United Kingdom where the brand performed because of its inheritance, but also in France, where the progression is dazzling, despite a slowdown last year, precisely because of the various sanctions taken from the brand.
Will electric MG prices decrease with production in Europe? Nothing is less certain, because the Chinese brand has not increased prices following European surcharge. She decided to reduce her margin temporarily.
To go further
Minimum price for Chinese electric cars sold in Europe: a historic agreement in sight with China
It should also be noted that European taxes could be reduced, or even suppress in the coming months, since China and Europe have reopened the negotiations.
One thing seems certain: in any case, that production is done in Europe or that import taxes are reduced or deleted, the price of MG should not increase. Which remains good news.
