China’s Nanjing Auto has officially started production of MG cars at its hometown this week after purchasing the rights to the MG Rover brand almost two years ago. Nanjing is China’s oldest carmaker, and the company has just launched a $362 million facility in the eastern city of Nanjing.

Nanjing’s main rival, Shanghai Automotive (SAIC), bought the technology rights of two Rover models and has since developed a Chinese version of the Rover 75 labelled the Roewe 75. Unlike SAIC, Nanjing is producing cars under the MG label and plans to introduce its vehicles in China, the UK and Europe and is likely to start manufacturing vehicles in the US next year.

Despite its size, Nanjing is reported to be having trouble raising finances to expand the range. Local banks are wary of lending the firm cash as it has been losing funds in recent times. Currently, only the TF sports car will be produced but if extra funds can be sourced, we may see all-new Chinese designed models eventuate.