The plant would aim to make Mexico a pole for SAIC Group and MG's growth and expansion in Latin America and the Caribbean, MG said.

SAIC Motor's MG Motor plans to build a manufacturing plant and R&D center in Mexico to support its expansion in Latin America.

The move will allow MG to not only produce cars but also produce market intelligence specifically designed for and by Latin America, MG Mexico head Zhang Wei said in a statement, according to a Reuters report on Wednesday.

MG's sister brand IM Motors also plans to enter the Mexican market, the company said.

The plant is intended to make Mexico a pole for growth and expansion for SAIC Group and MG Motor in Latin America and the Caribbean, MG said.

MG would be the latest carmaker to consider building a plant in Mexico. In March, Bloomberg reported that BYD (HKG: 1211, OTCMKTS: BYDDY) sent a delegation to the Mexican state of Jalisco to consider building an electric vehicle (EV) plant there.

BYD launched the BYD Shark pickup truck at a launch event in Mexico on May 14, one of the rare times it has allowed a new model to make its debut in an overseas market.

MG, short for Morris Garages, is a vehicle brand owned by Shanghai-based SAIC.

Last November 4, MG saw its first locally produced New MG4 Electric Thailand Edition roll off the production line, the first EV produced by MG in Thailand.

On March 20, Indian steelmaker JSW Group said it finalized an automotive joint venture with SAIC, JSW MG Motor India Pvt Ltd, to produce MG-branded EVs locally.

Earlier last month, Europa Press reported that MG was considering setting up its first EV plant in Europe in Galicia, Spain.

MG would make a decision by September 30 and aimed to produce its first vehicle at that European plant in the fourth quarter of 2027, according to the report.

SAIC's MG brand eyeing Spain for its 1st EV plant in Europe, report says