MG Plans to begin Car Production in Egypt by 2026

Key Highlights

• SAIC Motor plans to manufacture MG vehicles in Egypt by Q2 2026.

• $135 million investment agreement signed with Al Mansour Automotive Group.

• New facility in New October City spans 126,000 square meters.

• Initial production capacity of 50,000 vehicles annually, with future expansion to 100,000.

• The MG5 facelift will be the first model produced.

SAIC Motor has revealed plans to begin manufacturing MG vehicles in Egypt by Q2 2026. This move enhances MG's presence in European and African markets, while decreasing its dependence on Chinese production.

Key Investment in Egypt

This week, SAIC signed a $135 million investment deal with Al Mansour Automotive Group in Egypt. The new manufacturing plant will be situated in New October City, a key “fourth-generation city” in Egypt's industrial landscape.

Facility Details

• Covers 126,000 square meters.
• Initial production capacity: 50,000 vehicles per year.
• Future expansion to 100,000 vehicles annually.
• Features an 8,000-square-meter body shop, modern paint workshop, assembly line, closed warehouse, and offices.
• Expected to generate up to 10,000 direct and indirect jobs.

Focus on the MG5

The revamped MG5 will be the first model produced at the new Egyptian plant. The MG5, revealed in August, features:

• Updated front and rear designs.
• A larger frame than its predecessor.
• A modernized interior with dual 12.3-inch displays.

In the future, the plant will broaden production to include SUVs and electric vehicles, supporting MG’s commitment to innovation and sustainability.

MG’s Egyptian plant is a key part of its global expansion strategy, targeting new markets. At the same time, the brand is exploring options for an electric vehicle (EV) manufacturing facility in Europe.

Potential European sites include:

• Spain (leading option)
• Hungary
• Czech Republic

Building an EV plant in Spain would enable MG to avoid rising tariffs on Chinese-made EVs entering Europe.

Verdict

MG's expansion into Egypt with a new manufacturing plant marks a major step in its global growth strategy. The new facility will enhance MG’s presence in the European and African markets, with an initial focus on the facelifted MG5, followed by plans to produce SUVs and new-energy vehicles. Additionally, MG is eyeing Europe for a dedicated EV production site, aiming to navigate the evolving automotive landscape and tariffs. This move underscores MG’s commitment to innovation, sustainability, and market diversification.

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