SAIC Motor-CP mulls export of MG cars
Decision after second plant is complete
Chinese-Thai joint venture SAIC MotorCP Co is studying the feasibility of exporting MG cars from its Thai operation in 2019 after the development of its second plant in Chon Buri in 2018.
Pongsak Lertrudeewattanavong, vicepresident for distribution at MG Sales Thailand, said the parent company plans to reveal its business plan and the direction for its two assembly plants here around October.
He said SAIC Motor-CP’s manufacturing plants in Thailand are set to be the hub for right-hand drive MG cars, producing a massive volume for shipment to Asean and Oceania in the long run.
The first manufacturing plant is in Rayong, with production capacity of 50,000 cars a year. The second is under construction in Chon Buri.
“We will make a decision once the second plant starts commercial operation in 2018. The existing plant in Rayong will be either relocated or run separately,” Mr Pongsak said.
Founded in 2012, SAIC Motor-CP is a 51:49 joint venture between Shanghaibased SAIC Motor and Thai agrobusiness conglomerate Charoen Pokphand Group.
The company’s Rayong plant began operations in June 2014. Since then its MG cars have been sold locally.
In November 2015, it bought 438 rai of land for an undisclosed sum from SET-listed Hemaraj Land and Development Plc.
SAIC Motor-CP announced in May last year its plans to build a second plant with 700,000 square metres to handle assembly processes under one roof. The company’s investment budget is 30-40 billion baht.
SAIC Motor-CP aims to make 300,000 vehicles a year in Thailand.
It is one of 10 car companies that applied for phase two of the government’s eco-car scheme. The company was granted Board of Investment privileges in November 2014 to make 110,000 eco-cars a year worth 7.6 billion baht.
For the local car market, Mr Pongsak is confident of achieving the company’s sales target of 16,000 units this year because sales the first two months of 2017 rose by 43% year-on-year to 1,562 cars.
“We expect to double our car sales this year, our fourth in the Thai market,” Mr Pongsak said.
“2017 is a bullish year for the car market. We expect domestic buyers will buy 800,000 to 850,000 units this year because economic sentiment is better, thanks to the government’s big infrastructure projects and because more than 1 million cars under the first-time car buyer scheme are being unlocked after five years of ownership, stimulating buyers to replace them with new cars.”
Last year SAIC-Motor CP sold 8,319 MG cars, up sharply by 120% for its four passenger models: MG3, MG5, MG6 and MG GS.
Mr Pongsak plans to introduce two new passenger cars this year and increase MG’s showroom and service centres nationwide to 90 from 60 now by year-end. Five MG used car outlets will be opened in new locations as well.
He said the parent company has set as a milestone for MG to be one of the five leading car brands in Thailand by 2021, moving up from its current market share of 13th.