Visitors at the SAIC-owned MG Motor stand at the 2024 Geneva International Motor Show – Photo: Fabrice Coffrini / AFP
in Spain build factory China’s SAIC Motor, currently the second largest Chinese car manufacturer in Europe, mainly thanks to its British-based MG brand.
- The 200 million euros According to some information, Hungary was also considered as a location for an electric car factory, but in the end the choice fell on the Spanish province of Galicia. Production can start in 2028 in the plant planned for a capacity of 120,000 units per year.
Why is this important? The Hungarian car industry has not performed well in recent years, which can be attributed to the decline in demand in the European car market, the declining performance of the German industry and the slower-than-expected rise of electric cars.
- Chinese investment could have strengthened the Hungarian car industry, because in recent years Chinese brand owners have been able to increase their sales at the expense of European manufacturers.
- That’s right, the economy as a whole from this point of view, the further expansion of the low added value sector beyond BYD’s Szeged factory would not necessarily be fortunate. Last year, the automotive industry accounted for 6-7 percent of GDP he did Who.
Top view: The automotive industry is also of particular importance to Spain. Here after Germany are produced the most cars in Europe and the sector accounted for 10 percent of the Spanish economy in 2024.
- The Spanish car industry SAIC Motor’s greenfield investment is also significant for him, because recently Chinese manufacturers have increasingly been taking over underutilized European factories they are thinking.
- With the investment, the Chinese car industry the country becomes an important base. Stellantis and Leapmotor recently announcedthat one of the Chinese company’s models and a jointly developed Opel model will be jointly produced in the former’s factory in Zaragoza.
- Chery is the Barcelona of Nissan his factory bought it together with the Spanish company Ebro, although it has not yet started production there.
In numbers: in recent years, the number of cars produced in Spain was approximately five times higher than the domestic figure. Thus, the number of cars per capita is similar annually in the two countries.
Broader context: the Chinese car manufacturers was multiplied their sales in April this year compared to a year earlier: China’s share among the cars newly put on the market in the EU was already more than 9 percent. (This also includes the numbers of Geely-owned Volvo.)
- It was put on the market the number of new cars increased by 5.1 percent in April this year: pure electric and hybrid models were responsible for the increase, and this trend favors Chinese manufacturers, who have a three to five year advantage they enjoy it in electric cars and entered the European market with cheaper models.
- The acquisition of the Chinese market tariffs imposed by the European Commission on electric cars nor was it broken: Chinese brand owners avoid these by manufacturing within the EU, and they have increased the proportion of hybrids in their exports from China, which are currently exempt from customs duties.
