09 December 2012

SAIC Motor and CP Group form JV in Thailand to produce MG products for ASEAN Market

- Initial total investment of the project is around 1.8 billion yuan
- SAIC Motor will hold 51% of shares while CP Group 49%

Shanghai - 04 December 2012  – SAIC Motor Corporation Limited and CP Group of Thailand announced together that they are planning to establish a joint venture at Thailand to produce and sell MG (which has become SAIC’s own brand) series of products to the ASEAN market. The parties will leverage the MG brand resources and the R&D capabilities of SAIC Motor and the local industrial resources of Thailand to seize the developmental opportunities on the ASEAN market. This means that the largest automaker of China – SAIC Motor, and the largest enterprise of Thailand – CP Group, have formed win-win cooperation and initiated together an automotive development strategy facing ASEAN based in Thailand with the MG brand going international again.

According to the plan, the initial total investment of the project is around 1.8 billion yuan. SAIC Motor will hold 51% of shares through SAIC Hong Kong Investment Company and SAIC UK while CP Group 49%. SAIC Motor is authorizing its joint venture in Thailand to produce and sell MG series through technical licensing and trademark licensing. The joint venture in Thailand has planned its first step to release products from 2014, gradually forming a production and sales capacity of 50,000 units per year. The second step, the joint venture will leverage the internal taxation policies inside ASEAN to introduce more applicable products to ASEAN and other driver-on-the-right countries with an ambition of an annual capacity of 200,000 units.

As the main carrier for SAIC Motor’s international operations of its own brands, MG is well-known worldwide, and currently there are multiple MG products – MG7, MG6, MG5, MG3, etc. The whole-new driver-on-the-right MG6 model has been released to the UK market in 2011 and recognized by local consumers. Supported by SAIC Motor’s own R&D system, which is led by the Chinese and combined with global resources, the SAIC Motor Tech Center located at Anting, Shanghai, and SAIC's UK Tech Center located at Longbridge, UK, are providing powerful product R&D backup to the future development of the MG brand.

As the largest well-known multinational corporation in Thailand, CP Group has a wide range of social influence and channel resources and long-term successful experience of Chinese-Thai cooperation and operating joint ventures. SAIC Motor is the largest listed automaker in China, and it was listed among the 500 largest companies in the world for the 8th time, ranking the 130th place. The strong-strong combination will help the joint venture introduce competitive automotive products and the low-cost operation model featured lean investment and rolling-up development will help the joint venture get support from the local resources in the ASEAN market and build up its sales and service network with speed.

Overseas operation is an inevitable path for SAIC Motor to enhance its core competitiveness and cultivate its international operation capabilities. SAIC Motor indicated that it will take advantage of this opportunity of entering the Thailand market through MG brand to actively explore the ASEAN market, expand its overseas layout, build up its own brands, and contribute to the innovations, development and shift of the Chinese automotive industry.

Source: SAIC Motor