SAIC Motor to build Ferrol plant to sidestep EU tariffs and carbon border tax

SAIC Motor Corporation Limited announced that its new vehicle assembly plant in Ferrol, Spain, will involve an investment of €196.9 million. Construction is scheduled to begin in 2027 with production slated for late 2028. The plant will import semi‑knocked‑down (SKD) kits from China, allowing the cars to enter the EU market without incurring the import duties and the Carbon Border Adjustment Mechanism (CBAM) charge.

President Wang Xiaoqiu told shareholders that the "localized construction" of factories abroad is a key pillar of SAIC’s strategy as price competition in China intensifies and external trade barriers rise. He emphasized that the Ferrol facility will help the company serve the European market directly and avoid both tariff and carbon‑border costs, aligning with similar projects in Thailand, Indonesia and other European sites.

The announcement follows SAIC’s broader push to expand its presence in Europe, complementing recent investments by other Asian automakers in underused European factories.