MG Motor to establish manufacturing plant and R&D center in Mexico

MG Motor has said it plans to establish a production plant and an R&D center in Mexico so as to gather market intelligence specific to the Latam automobile market. The carmaker stated that it remains keen on deepening its investment in the continent. This move places MG Motor side by side with other EV makers including BYD and Tesla that have contemplated setting down operations in Mexico, the US' biggest trading partner. That being said, Tesla has recently decided to postpone its expansion due to many unforeseen issues concerning the trade policies of the United States.

The new MG Motor plant will improve the productive capacity of the car and also provide market intelligence tailored for Latin America as mentioned by Zhang Wei, the MG Motor’s country manager. While details regarding the investment and the construction of the new plant has not been revealed, it shall play an important role in MG’s expansion strategy in LATAC region.

Currently, MG Motor is under the management of China’s SAIC Motor Corp and the company seeks the location Mexico strategic to its expansions in these regions. The company did not show any specific direct strategies linked to the U. S. market but mentioned that its affiliated brand IM that centers on electric luxury cars has ambitions to expand into the Mexican market.

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This announcement is made at a time when the federal government of Mexico has stopped giving incentives to the Chinese auto manufacturers as a result of pressure from America. Furthermore, BYD stated that its Mexican production line is not for the US market, and the US President Joe Biden’s recent tariffs increase on Chinese EVs has made it worse.

Tesla CEO Elon Musk has indicated that the company's plans for a Mexican plant are on hold pending the outcome of the upcoming US presidential election, as former President Donald Trump has proposed substantial tariffs on EVs manufactured in Mexico if re-elected.