Recently, SAIC Motor announced plans to build its first EU automotive manufacturing plant in Galicia, Spain. This represents an important step in the European localization strategy for SAIC’s MG brand. According to local government reports, the initial investment will be approximately €200 million, creating around 1,000 direct jobs. The plant is scheduled to start production in 2028 with an annual capacity of up to 120,000 vehicles.
This news has sparked discussions among industry insiders:
Why Spain?
As a local logistics company rooted in Spain and serving Chinese enterprises expanding into Europe, we believe this is more than just a car factory - it signals an important shift:
Chinese enterprises are transitioning from “selling products” to “building supply chains” in Europe.
Chinese Automakers Entering a New Phase in Europe
Over the past few years, Chinese automotive exports have continued to grow rapidly.
According to the IEA’s “Global EV Outlook 2026”, the global NEV market continued to expand in 2025, with Europe remaining one of the most important markets. Meanwhile, Chinese brands are accelerating their entry into Europe, driving localization and supply chain development.
In fact, relying solely on exporting vehicles from China to Europe is becoming increasingly challenging in meeting market competition demands.
On one hand, European consumers are placing greater emphasis on delivery cycles, after-sales service, and local supply capabilities.
On the other hand, the EU has been strengthening requirements for automotive supply chain localization, hoping to keep more manufacturing within Europe.
As a result, we see more Chinese enterprises establishing:
• Vehicle assembly plants
• Battery factories
• Component manufacturing facilities
• Overseas warehouses and logistics centers
SAIC’s investment in Spain is essentially a continuation of this trend.
Why Spain Specifically?
Many people’s first reaction is:
Aren’t Germany and France the automotive powerhouses of Europe?
Why are Chinese enterprises choosing Spain?
The answer is quite practical.
1. Excellent Logistics Hub Position
Spain is located at Europe’s southwestern gateway.
After entering Europe from Asia via the Suez Canal, whether through the Mediterranean to ports like Valencia and Barcelona, or through the Strait of Gibraltar to southern Spanish ports, Spain enjoys natural geographical advantages.
For Chinese enterprises:
• Easy access to imported raw materials
• Convenient coverage of European markets
• Even easier access to North African markets
Especially when connecting to the Moroccan market, Spain is almost a necessary hub.
2. Lower Costs Than Traditional Industrial Nations
Compared to Germany and France, Spain offers more competitive manufacturing costs.
Additionally, the Galicia region already has a mature automotive industry support system. Local government indicates there are approximately 80 related enterprises in the regional automotive supply chain, providing a solid foundation.
For Chinese automakers expanding their European market share, this means lower investment risk and faster implementation.
3. Spain is Becoming an Investment Hotspot in Europe
According to official Spanish investment promotion data, Spain currently hosts over 22,000 foreign enterprises, creating more than 2 million jobs, making it one of Europe’s most attractive markets for international investors.
In recent years, significant international capital has been flowing into Spain in sectors such as NEVs, data centers, and AI.
For Chinese enterprises looking to establish a strong presence in Europe, Spain is transforming from a “peripheral European market” to a “strategic European gateway.”
Behind Every Factory Lies Supply Chain Opportunities
Many see SAIC building a factory, but the real impact extends to the entire supply chain.
Because behind a factory producing 120,000 vehicles annually, there are needs for:
• Component supply
• Production equipment transportation
• Tooling and fixture transportation
• Raw material procurement
• Warehousing and transshipment
• Intra-Europe distribution
All these generate substantial logistics demands.
In recent years, we’ve seen more Chinese enterprises exporting to Europe:
• Auto parts
• Battery-related products
• Industrial equipment
• Building materials
• Furniture
And as more Chinese enterprises establish local production in Europe, this demand will continue to grow.
Logistics Models Are Evolving for Chinese Enterprises
In the past, many enterprises operated with:
Chinese Factory → European Customers
Now more enterprises are shifting to:
Chinese Factory → European Warehouse → European Factory → European Customers
The logistics chain is longer, compliance requirements are higher, and customs clearance processes are more complex.
This is why more enterprises are seeking logistics partners with genuine local European resources.
Because many challenges cannot be solved from within China.
For example:
• European import compliance
• Local tax handling
• Port inspection coordination
• Overseas warehouse transshipment
• Intra-Europe delivery
All require local team involvement.
About MYU Logistics
MYU Logistics is a locally registered Chinese logistics company in Spain, dedicated to serving Chinese enterprises expanding into European and North African markets.
100% Local Team
- All employees are recruited and trained locally in Europe and Africa, familiar with EU regulations, taxation, and operational procedures
Multilingual Professional Services
- Service languages include Chinese, English, Spanish, and French, ensuring seamless communication and precise response
Local Company
- Leveraging local entities in Spain/Morocco to provide efficient distribution and warehousing networks covering Europe and North Africa
🚛 What Can We Do?
Full-Chain Sea Freight Services : FCL, LCL, and air freight transportation covering major European ports and inland points
Diversified Trade Term Services : Supporting DDP, DDU, DAP, EXW and other terms, providing full customs clearance services including VAT and duty payment
Local Land Transportation & Warehousing : Trucking, warehouse consolidation, short-term storage, and distribution services
Special Cargo Handling : Specialized handling of overlength, overwidth, overheight, overweight cargo, as well as cold chain, furniture, equipment, apparel, building materials, compliant dangerous goods, and other special categories
✅ Our Advantages?
Compliance & Transparency : Rejecting gray customs clearance, all operations are legal and compliant with fully traceable processes
Tax Optimization : Combining local tax policies to provide compliant tax planning advice and optimize supply chain costs
End-to-End Project Management : Dedicated follow-up from booking to customs clearance and final delivery, ensuring safe and on-time arrival
Local Network Support : Leveraging multiple warehouses and partner nodes across Europe and Morocco for rapid response and flexible scheduling
