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Major Chinese Automotive Investment Lost to Spain 2026

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Major Chinese Automotive Investment Lost to Spain 2026
Major Chinese Automotive Investment Lost to Spain

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    The new European electric car plant of Chinese automaker MG (SAIC Motor) will be built not in Hungary, but in Galicia, northern Spain. For the newly elected Hungarian government, the Chinese company’s decision on the location is turning into its first major economic policy setback. Until recently, Hungary was considered one of the favorites to win the contract in negotiating circles.

    Bence Rétvári, parliamentary group leader of the Christian Democratic People’s Party (KDNP), sharply criticized the cabinet in a video message posted on his social media page. According to the politician, Hungary remained on the shortlist until the very end in the fierce competition for the plant. The loss of the project, worth 71 billion forints (200 million euros), is a severe economic blow.

    As a result of the rejection, Hungary will miss out on 2,300 potential jobs. Rétvári accused the government of doing too little to preserve domestic jobs and attract foreign capital. “This is what happens when there is only ‘Facebook governance’ but no real governance. No one is working for Hungarian jobs; they’re just posting updates,” he said.

    For the new government, the decision by MG’s parent company, SAIC Motor, is a major setback, as promising key technology and thousands of jobs have been lost to a European competitor.

    As Világgazdaság reports, plans for the Spanish MG site are already set. Construction in Galicia is scheduled to begin next year, with production set to start in 2028. The plant is designed for an annual capacity of 120,000 electric vehicles and is to be built with an initial budget of 200 million euros.

    The decision to choose Spain is no coincidence. For the Chinese auto giant SAIC, the country is a core market. Last year, the MG brand put over 300,000 vehicles on the road across Europe—45,000 of them in Spain. This represents a 46% increase in sales compared to 2024. Since 2021, MG has delivered more than 130,000 vehicles in the southern European country and is now the most successful Chinese car brand there.

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    Hungary has increasingly become Europe’s primary hub for Chinese battery and electric vehicle investments in recent years.Continue reading

    Via Világgazdaság, Featured image: Hungary Today (illustration)

    The post Major Chinese Automotive Investment Lost to Spain appeared first on Hungary Today.

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