The brand, originally British and now owned by China's SAIC, already sells vehicles in Mexico but aims to produce MG and luxury IM models locally. This move will also support its expansion into the Caribbean and improve its understanding of the Latin American market.
While no timeline or specific location for the facility was provided, Mexico City, just 500 miles from the U.S. border, could be a potential site. However, MG has not suggested plans to use this expansion to enter the U.S. market, according to Reuters.
Earlier this year, rival BYD announced its own Mexico plant, but stated it would not produce cars for the U.S. MG could potentially avoid U.S. tariffs on Chinese imports by manufacturing in Mexico, but the Biden administration may impose a ban on Chinese software in autonomous and connected vehicles. Additionally, the U.S. has pressured Mexico to halt incentives for Chinese automakers.
Tesla has considered a factory in Mexico but postponed the decision until after November's U.S. election, as CEO Elon Musk is wary of potential tariffs on EVs imported from Mexico, Reuters reports.
Source: Reuters
