China’s SAIC Motor launched a new compact SUV in Thailand this week as part of its efforts to expand in south east Asia.

SAIC Motor-CP Company, the company’s Thai joint venture, has spent THB9bn (US$273m) on an assembly plant in Rayong province with capacity to produce 50,000 vehicles a year.

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Its vehicles are distributed by subsidiary MG Cars (Thailand) and sold under the old British MG badge which SAIC Motor owns as a result of its acquisition of Nanjing Motor in 2007.

The ZS is fitted with a 1.5 litre engine and competes in Thailand with models such as the Ford EcoSport and the Nissan Juke. It is priced at TH679,000-THB789,000 ($20,575-$29,910).

The ZS is the second SUV to be sold in Thailand under the MG badge after the GS launched earlier this year.

SAIC Motor sold around 8,500 vehicles in Thailand in the first nine months of 2017 and expects SUVs to account for 50% of its sales in this market in 2018, up from the current 20%.

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For the ZS alone the company has set a sales target of 12,000 units for next year.

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