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MG to Start Manufacturing Cars in Egypt by 2026

Author avatarBy Ahmad Rashad Al Zeer
Jan 02, 2025

Last updated: Sep 30, 2026

2 min read
6,542 views
MG to Start Manufacturing Cars in Egypt by 2026

Discover how MG's $135 million investment in Egypt will enhance global expansion. Learn about the new factory, MG5 production, and plans for electric vehicle manufacturing. YallaMotor UAE

mg manufacturing egypt 2026 global expansion

 

SAIC Motor has announced plans to start manufacturing MG vehicles in Egypt by the second quarter of 2026. This significant development strengthens MG’s foothold in European and African markets while reducing its reliance on Chinese-based manufacturing.

Key Investment in Egypt

Earlier this week, SAIC signed a $135 million investment agreement with Al Mansour Automotive Group in Egypt. The new manufacturing facility will be located in the industrial hub of New October City, one of Egypt’s prominent “fourth-generation cities.”

Facility Details

  • Spans 126,000 square meters.
  • Initial production capacity: 50,000 vehicles annually.
  • Future expansion to 100,000 units annually.
  • Includes an 8,000-square-meter body shop, a modern paint workshop, assembly line, closed warehouse, and administrative offices.
  • Projected to create up to 10,000 direct and indirect jobs.

Focus on the MG5

mg manufacturing egypt 2026 global expansion

The facelifted MG5 will be the first model to roll off the production line at the Egyptian plant. The MG5, unveiled in August, boasts:

  • Updated front and rear fascias.
  • A larger frame compared to its predecessor.
  • Modernized interior with dual 12.3-inch displays.

Over time, the plant will expand production to include SUVs and new-energy vehicles, aligning with MG's broader goals of innovation and sustainability.

Global Expansion Strategy

MG's Egyptian plant represents a strategic step toward entering new markets. Concurrently, MG is evaluating plans for a dedicated electric vehicle (EV) manufacturing facility in Europe.

Potential European Locations

  1. Spain (front-runner).
  2. Hungary.
  3. Czech Republic.

Establishing an EV plant in Spain would help MG circumvent increasing tariffs on Chinese-manufactured EVs imported into Europe.

Conclusion

With the launch of its Egyptian manufacturing plant and potential European expansion, MG is cementing its position as a global automotive leader. Through localized production and cutting-edge technologies, the brand is well-poised for a promising future.

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