MG Motor plans to build a manufacturing plant and R&D center in Mexico. On August 8, MG announced its intention to make Mexico a market hub for Latin America. Zhang Wei, head of MG Mexico, stated, “This move allows us to produce cars locally and gather market intelligence in Latin America.” MG aims to make Mexico the center for SAIC Group and MG’s growth in Latin America and the Caribbean. However, MG did not disclose the investment amount for Mexico or provide a timeline for construction.
MG faces challenges in its localization efforts in Mexico. In April, the Mexican federal government announced it would stop providing investment incentives to Chinese automakers due to pressure from the U.S. Former President Trump stated that he would impose a 100% tariff on Chinese cars imported from Mexico if he wins the next election. As a result, Tesla has paused its plan to build a gigafactory in Mexico. The company will reassess its investment plans after the U.S. election concludes. MG did not mention the U.S. market in its latest plans but noted that its sister brand, Zhiji, also aims to enter the Mexican market.