China’s SAIC group launched production this week of its MG6 compact passenger car at a newly-built joint venture plant in the Rayong industrial district of Thailand.
The new plant, with annual production capacity of 50,000 units, is owned by SAIC Motor-CP, a joint venture between SAIC (51%) and Charoen Pokphand Group (49%) – one of Thailand’s largest companies.
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The MG6, launched earlier this year at the Bangkok motor show, is based on SAIC’s Roewe 550 and is powered by a 1.8L engine. SAIC acquired the MG brand from the UK’s failed MG Rover group in 2006.
The company said deliveries in (right hand drive) Thailand would start next month and its sales target for this year is 2,000 units. It currently has 15 dealers and service centres in place and aims to double this number by the end of the year.
Sales are expected to rise to 14,000 in 2015, including exports to Malaysia and Indonesia.
Completion of the plant brings to an end only the first phase of expansion for China’s largest vehicle manufacturing group, although more models will be added in the next few years. By 2018, production will be transferred to a second plant, in Chon Buri, with a capacity of up to 200,000 units per year. The current plant will then focus on production of engines, transmissions and other key parts.
SAIC said it will invest around THB 30-40bn (US$923m) in Thailand and will target right hand drive markets worldwide from here, including Australia, New Zealand and the UK. As well as MG passenger cars, other models will include MG brand SUVs and pickup trucks and Maxus Datong commercial vans.
