MG wants to avoid tariffs by using electricity produced right next door.

The new MG electric vehicle is set to be produced in Ferrol, Galicia, and Spain’s choice as the location for the factory is no coincidence.

The race for affordable electric cars is gaining new participants. Following the MG4 Urban, the British brand under China’s SAIC group is preparing an even smaller and more affordable model: the MG Go!.

At around four meters in length, this new electric vehicle will compete with the Renault 5 and MINI Cooper. The price has not been announced yet, but given its positioning, it is likely to be below the 23,900 euros price of the MG4 Urban, giving it a significant advantage over its closest competitors.

Unveiled at the Goodwood Festival of Speed, the MG Go! originated as a prototype in MG’s design center in London. The production version is expected to retain much of its appearance, featuring a retro-futuristic aesthetic that we have already discussed.

Shared mechanics?

There are no confirmed technical details for the MG Go! yet, but one possibility is to use the mechanics from the MG4 Urban.

If this plan comes to fruition, the new model could utilize the E+ platform, offering front-wheel drive and an electric motor with 110 kW (150 hp), paired with a 43 kWh LFP battery.

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Produced in Spain to avoid tariffs

It seems almost certain that the MG Go! will be produced in Ferrol, Galicia, at SAIC’s first European factory. This information is reported by the Spanish newspaper La Tribuna de Automoción, based on industry sources.

Production at that facility is expected to begin by the end of 2028, with an initial output of 70,000 vehicles per year, potentially rising to 120,000. The investment is set to create around 2,000 jobs, half of which will be direct.

The choice of Spain is driven by economic reasons, as it offers the potential to avoid additional tariffs imposed by the European Union. SAIC’s electric vehicles manufactured in China currently face a 35.3% additional tariff on top of 10% customs duties.

It remains to be seen whether the electric vehicle future will be able to escape high costs, as in the initial phase the factory will function only as an assembly line using components imported from China (Completely Knocked Down or CKD). Only later will the factory undertake stamping, body building, or painting operations.