MG Motor Brazil Manufacturing Begins with MG4 Urban and MGS5 EV Production

SAIC Motor has officially taken its first manufacturing step in Brazil through its MG brand after announcing that the MG4 Urban and MGS5 electric vehicles will be assembled at the Ceara Automotive Plant (PACE) in Horizonte. The announcement, made jointly with the Government of Ceara on June 25, establishes the beginning of MG Motor's local vehicle production operations in Brazil. The initiative forms part of the company's broader strategy to strengthen its presence in one of South America's largest automotive markets while expanding local manufacturing capabilities for electric vehicles.

SAIC Motor Commits BRL 400 Million to Local Production

SAIC Motor confirmed that it will invest BRL 400 million in the manufacturing project. More than BRL 60 million from this total will be dedicated to upgrading and adapting the production line before assembly activities begin in October 2026. The remaining investment is designed to support long-term manufacturing growth while preparing the facility for efficient electric vehicle production. According to the company, the financial commitment demonstrates its intention to establish a sustainable manufacturing footprint rather than relying solely on imported vehicles.

Production Capacity and Economic Impact

The investment program is expected to enable production of as many as 50,000 vehicles over the coming years. Besides increasing domestic manufacturing capacity, the project is anticipated to generate around 600 direct and indirect employment opportunities across the region. In addition to production-related spending, approximately BRL 340 million has been earmarked for infrastructure improvements, workforce training programs, and innovation initiatives that will help strengthen the overall automotive ecosystem supporting the facility.

Localization Strategy Supports Market Expansion

The company described the manufacturing project as the initial phase of a wider localization strategy for the Brazilian market. Alongside domestic vehicle production, MG plans to significantly expand its retail presence by increasing its dealership network to more than 70 locations before the end of 2026. This combination of local manufacturing and dealership growth is intended to improve customer access, strengthen after-sales support, and reinforce the brand's long-term position within the country's rapidly evolving electric vehicle market.

PACE Facility Continues to Expand EV Manufacturing

The Ceara Automotive Plant (PACE), which entered operation in late 2025, continues to broaden its role as an electric vehicle production hub. Besides adding the MG4 Urban and MGS5 to its assembly lines, the facility also manufactures the Chevrolet Spark EUV and Captiva EV for General Motors. The addition of MG models further expands the plant's portfolio and highlights its growing importance in supporting electric vehicle manufacturing activities within Brazil.

Frequently Asked Questions

Why is MG Motor starting vehicle production in Brazil?
MG Motor is beginning local manufacturing as part of its long-term localization strategy to strengthen its presence in the Brazilian automotive market while supporting electric vehicle growth. Producing vehicles locally can improve supply efficiency, expand market reach, support dealership growth, and create employment opportunities. The investment also demonstrates SAIC Motor's commitment to developing manufacturing capabilities and building a stronger long-term presence in Brazil's evolving electric vehicle industry.

Which vehicles will be manufactured at the Ceara Automotive Plant?
The first MG models scheduled for production are the MG4 Urban and MGS5 electric vehicles, with assembly expected to begin in October 2026. The PACE facility also assembles the Chevrolet Spark EUV and Captiva EV for General Motors. Adding MG vehicles expands the plant's production portfolio while reinforcing its position as an important electric vehicle manufacturing center in Brazil.

What investment has SAIC Motor announced for the project?
SAIC Motor has committed BRL 400 million to establish local vehicle Manufacturing & Production, including production line upgrades, infrastructure development, workforce training, and innovation initiatives. More than BRL 60 million will be invested in preparing the assembly line before production begins, while approximately BRL 340 million will support broader development activities. The project is expected to help produce up to 50,000 vehicles over the coming years and generate around 600 direct and indirect jobs.