Tuesday, September 16, 2025

Chinese-owned MG Motor to build a manufacturing plant in Mexico

Chinese-owned automotive company MG Motor has announced plans to build a manufacturing plant and research and development center in Mexico.

Zhang Wei, president of MG Motor México, announced the plans on Wednesday in a statement that highlighted that the company has now sold 150,000 vehicles in Mexico just four years after entering the market.

Zhang Wei, President of MG Motor Mexico
Zhang Wei, the president of MG México, said “we’re excited” to turn Mexico into a hub for Latin America. (Zhang Wei/LinkedIn)

“Looking to the future, we’re excited to announce plans to establish Mexico as a hub for Latin America. This includes not just a manufacturing plant, but also a research and development center,” Zhang said.

“This move will allow us not only to produce vehicles, but also generate market intelligence specifically designed for and by Latin America,” he said.

Zhang didn’t say how much MG planned to invest in the plant and R & D Center, where the facilities would be located or when construction will commence.

However, the El Economista newspaper reported that the plant will be located in central Mexico or the Bajío region and produce 100,000 vehicles per year in an initial phase of operations.

MG Motors car on display
MG Motors is one of the top-selling Chinese brands in Mexico. (MG Motors/Instagram)

MG makes internal combustion engine vehicles as well as electric and hybrid models.

Reuters reported earlier this year that pressure from United States authorities had led the Mexican government to refuse to offer incentives to Chinese electric vehicle manufacturers planning to invest in Mexico. United States presidential candidate Donald Trump has pledged to impose heavy tariffs on cars manufactured in Mexico by Chinese companies if he returns to the White House next January.

The announcement by MG —  a company established in the United Kingdom in 1924 and acquired by state-owned Chinese company SAIC Motor Corp in 2007 — comes after major Chinese electric vehicle manufacturer BYD confirmed in February that it will open a plant in Mexico. BYD Americas CEO Stella Li said that the company’s Mexico plant will only make vehicles for the Mexican market, not for export to the United States or other countries.

Zhang said that the decision to establish an MG/SAIC plant in Mexico demonstrates “our commitment to stay and prosper” in the Mexican market and “our dedication to our customers and the country.”

He said MG’s aim is to “make Mexico a pole for growth and expansion for SAIC Group and MG Motor in Latin America and the Caribbean.”

Zhang also said that MG stablemate IM (Intelligent Mobility) is planning to sell its premium electric vehicles in Mexico.

With reports from El Financiero, El Economista, Reuters, El CEO and AS

2 COMMENTS

Have something to say? Paid Subscribers get all access to make & read comments.
China-Mexico trade

China tariffs could backfire on Mexican industry, chamber warns

1
The Mexico-China Chamber of Commerce and Technology (MEXCHAM) is warning that if tariffs are raised on China, the country will suffer inflationary and manufacturing cost pressures.
three men in front of the Halcón aircraft

After nearly 70 years, a 100% Mexican-made airplane is cleared for takeoff 

2
Mexico has a thriving aeronautics industry, making everything from turbines to fuselages. But it hadn't designed and built its own aircraft since the 1950s.
A woman picks coffee beans

Veracruz coffee growers are not impressed with the government’s instant ‘Wellness Coffee’

7
For one thing, instant coffee is a waste of Veracruz’s high-quality beans, some producers say.
BETA Version - Powered by Perplexity