Chinese car manufacturer MG is nearing the end of its search for a location for two new factories in Europe. According to information based on sources close to the company, the location of the first of these plants will be announced this summer.
Will MG build its new factory in Turkey?
MG’s parent company SAIC plans to realise this investment in order to avoid the high customs duties imposed on electric vehicle exports in Europe. Currently, MG brand electric vehicles shipped from China to Europe are subject to a basic customs duty of 10% as well as an additional tariff of 35.3%.
The company, which wants to get rid of this tax burden, which will last for five years in total, aims to reduce costs by producing within the region. Instead of taking over an existing facility, the company will build a factory from scratch. This facility is expected to have an annual production capacity of 100 thousand units in the first stage.
If production is approved, construction will be completed within 12 to 16 months. However, the final decision has not yet been made for the location of the new factory. Turkey stands out with its free trade agreement with the European Union and recent Chinese automotive investments.
Following BYD’s investment in Manisa and Chery’s Samsun project, MG is also likely to choose Turkey. Other candidates include Germany, Hungary, Slovakia and Slovenia.
The common feature of these countries is that they oppose the additional tariffs imposed on imported vehicles from China. So what do you think about this issue? You can share your opinions with us in the comments section below.
