SAIC Motor, the parent company of the MG brand, has taken a significant step in its global expansion strategy by announcing plans to commence vehicle production in Egypt during the second quarter of 2026. This strategic move marks a crucial milestone for MG, enabling it to diversify its manufacturing footprint and reduce its reliance on Chinese production facilities, where all current MG models are currently manufactured.
This strategic decision follows the signing of a substantial agreement between SAIC and Egypt's Al Mansour Automotive Group. The agreement entails a significant $135 million investment in an advanced manufacturing facility strategically located within the industrial zone of New October City, one of Egypt's modern "fourth-generation cities." The state-of-the-art plant will encompass a substantial 126,000 square meters, with an initial production capacity of 50,000 vehicles per year. This capacity is projected to be further expanded to 100,000 units annually in subsequent phases. The facility will encompass a comprehensive range of manufacturing operations, including a dedicated body shop spanning 8,000 square meters, a large-scale paint shop, a robust assembly area, a secure closed warehouse, and modern administrative office buildings. This significant investment is expected to create a substantial number of employment opportunities, with an estimated 10,000 direct and indirect jobs anticipated to be generated.
The inaugural model to roll off the production line in Egypt will be the recently unveiled facelifted MG5. This updated model boasts revised front and rear styling, along with a slight increase in overall dimensions compared to its predecessor. The interior has undergone a significant transformation, featuring a pair of 12.3-inch digital displays for the instrument cluster and infotainment system. In the future, the Egyptian plant will expand its production to encompass a wider range of models, including a diverse lineup of SUVs and a growing portfolio of new energy vehicles.
This strategic move into the Egyptian market aligns perfectly with MG's ambitious global expansion plans. The establishment of a local manufacturing base in Egypt will provide MG with a strategic foothold in both the European and African markets, facilitating more efficient distribution and potentially reducing logistical costs.
Furthermore, MG has been actively exploring options for establishing a dedicated electric vehicle (EV) manufacturing plant within Europe. Spain, Hungary, and the Czech Republic have been considered as potential locations for this crucial facility. However, Spain is currently emerging as the frontrunner in this strategic decision. Establishing EV production within Europe will enable MG to effectively navigate the evolving regulatory landscape and avoid the escalating tariffs imposed on Chinese-made EVs imported into the European market. This strategic move will be crucial for MG to maintain its competitive edge and expand its market share within the rapidly growing European EV market.