MG Motors confirms factory in Ceará and plans national flex-fuel cars for Brazil

MG Motor confirmed that it will develop vehicles with flex technology for the Brazilian market, expanding its strategy in the country beyond 100% electric models. The announcement was made last Thursday (25), in Fortaleza, alongside the confirmation of the brand’s first production line in South America, which will operate at Pace (Automotive Plant of Ceará), in Horizonte (CE), in partnership with Comexport.

The project foresees an investment of R$ 400 million, of which more than R$ 60 million is intended for the adaptation and modernization of the assembly line and R$ 340 million for research, development and innovation. The expectation is to produce 50 thousand vehicles in the next four years and generate about 600 direct and indirect jobs. Production is expected to begin in October 2026.

National manufacturing will begin with the MG4 Urban electric hatch and the MG S5 SUV, both fully electric. The main highlight, however, is the confirmation that the brand will develop flex models aimed at the needs of the Brazilian market, in a second stage of the plan. The manufacturer has not yet said which vehicles will receive the technology or whether it will be applied to combustion engines, conventional hybrids or plug-in hybrids.

The decision represents an adaptation to the characteristics of the domestic market, where ethanol continues to be an important ally of electrification. With local production, MG also expects to reduce logistics costs, expand supply and make its models more competitive, especially outside large urban centers.

Although the automaker has not detailed the engine, Autoesporte magazine points out two hybrid sets as likely candidates. One of them would be a PHEV (plug-in), which would combine a 1.5 turbo engine with an electric machine and a 24.7 kWh battery, with a combined power of 339 hp. The other would be an HEV (full hybrid), combining the same 1.5, this time aspirated, with a lower power electric motor, for 224 hp as a whole.

Installed in Horizonte, Pace operates in a multi-brand model and already houses the production of General Motors electric vehicles, such as the Chevrolet Spark EUV and the Captiva EV, since the end of 2025. Controlled by China’s SAIC, which sold more than 4.5 million vehicles in 2025, MG sees Brazil as a strategic hub for electrification in Latin America.

The brand also claims to invest in new battery technologies, including semi-solid solutions to increase autonomy and energy density, but there is still no forecast for the arrival of these cells in the country.