SAIC Motor is set to establish its first vehicle manufacturing facility within the European Union in the Galicia region of Spain, backed by an initial investment of around €200m ($232.9m).
The project, which has been granted strategic industrial project status by the Galician regional government, will comprise a production plant at the Outer Port of Ferrol and a separate industrial and logistics hub in As Pontes de García Rodríguez.
SAIC is targeting an annual output of 120,000 vehicles from the facility.
The decision will disappoint many in the UK auto industry given the British heritage of SAIC's MG brand (which it sells its cars under in European markets) and the fact that the UK is by far MG's biggest national market in Europe. GlobalData estimates MG UK sales in 2025 at 84,500 units, way above other national markets in Europe (below chart). However, some reports have said that the final decision was down to a locating a factory in Spain or Hungary, both seen as low-cost options within the EU's single market (which the UK is outside of).
The new facilty is projected to generate 1,000 direct and a similar number of indirect roles in Ferrol, with a further 300 positions anticipated at the As Pontes logistics centre.
Site preparation is scheduled to commence in 2027, with the complex due to become operational the following year.
Galicia's President, Alfonso Rueda, confirmed the regional government's backing for the scheme, saying: “It will be the first industrial project of the multinational in Europe”.
According to the regional government, SAIC chose Galicia over other prospective European locations based on the region's industrial capabilities, its established manufacturing base and its capacity to support swift implementation.
The Chinese automaker first indicated its interest in the region in October 2025, before lodging a formal request to advance the project.
Galicia's Minister of Economy and Industry, María Jesús Lorenzana, said her department had held a series of meetings with SAIC and the Spanish central government.
She noted that by March the national government considered the investment proposal sufficiently developed to be referred for foreign direct investment approval.
The broader development envisages an industrial and logistics complex spanning the Ferrolterra and As Pontes area, incorporating advanced manufacturing technologies and local component sourcing to meet EU regulatory requirements.
Lorenzana cautioned that the project remains conditional on securing the necessary land concessions, foreign direct investment authorisation from Spain's Council of Ministers, positive economic assessments and public backing.
The Galician government has established a dedicated unit within its economic office to oversee coordination, monitoring and administrative procedures connected to the investment.
