(Yicai Global) July 5 -- SAIC Motor, China’s biggest automaker, will set up a European plant and is seeking a suitable location, according to the executive in charge of its overseas business.

The plan to build a factory in Europe was put on the agenda this year after SAIC hit its annual goal of selling 100,000 vehicles in the market last year, Yu De, general manager of the firm’s overseas business department, told the media yesterday.

Three years ago, Chairman Chen Hong said that SAIC would consider building a European plant after annual sales in the region reached 100,000. 

SAIC has an assembly line in Thailand, Indonesia, and India, an auto parts factory in Pakistan, and three research and development centers in Silicon Valley, London, and Tel Aviv, according to the Shanghai-based carmaker's website. 

Last year, SAIC exported the most cars of all Chinese automakers for the seventh straight year and sold more than 1 million autos abroad. Its overseas sales jumped 40 percent to 530,000 in the first six months ended June 30 from a year earlier, its latest data showed.

Sales of SAIC's MG-branded cars equaled nearly 70 percent of its overseas total in the first half of this year, with the marque entering 28 European countries and selling 115,000 units there, a 143 percent surge from a year ago.

Indian media recently reported that local steel-to-energy conglomerate Jindal Southwest Group aimed to buy between 45 percent and 48 percent of SAIC unit MG Motor India. Car dealers and local employees were said to take another 5 percent to 8 percent, leading to SAIC losing control over the subsidiary.

SAIC denied the reports on June 26, saying it owns MG Motor and “any equity transactions that involve the Indian unit need to be approved by the Chinese government.”

Yu again rebutted the reports about SAIC losing control of MG Motor yesterday, noting that the carmaker is seeking partners in India, but contacts are at an early stage.

Editors: Dou Shicong, Martin Kadiev