SAIC Motor-CP Co, the Chinese-Thai car maker, is conducting a feasibility study about investing in a second plant here as it intends to make Thailand its manufacturing base for right-hand-drive vehicles to serve both the local and export markets.
The Thai-made MG6 sedan will be launched in the third quarter.
"The second assembly plant will be established in Chon Buri or Rayong perhaps, which are close to auto parts suppliers and the Laem Chabang deep sea port," said a source from Charoen Pokphand (CP) Group, the country's agro-industrial giant, who asked not to be named. "More details will be available once the first plant runs at full capacity."
Shanghai Automotive Industry Corporation (SAIC) announced late last year it formed a joint venture with CP Group for first-phase investment of 9 billion baht in the manufacturing facility in Rayong's Hemaraj Eastern Seaboard Industrial Estate. SAIC holds a 51% stake in the venture with CP holding the rest.
Production capacity will be 50,000 vehicles a year, mainly for the well-known British brand MG, which the Chinese firm bought in 2005.
Wu: New plant plan a few years away
The first plant is due to start operation in February next year, with first-year production of around 2,000 units.
The source said the second plant would enable SAIC Motor-CP's production to rise to 150,000-200,000 vehicles a year.
SAIC is the largest car maker in China, with annual production and sales of 4 million vehicles, and 60,000 exports.
It operates four car brands, with plans to introduce the Maxus Datong, Roewe, MG Rover and Yuejin, and has six plants across China and one in Britain.
SAIC Motor aims to export from Thailand to right-hand-driving countries such as Malaysia, Singapore, Indonesia, Australia, New Zealand and Britain.
Wu Huan, the president of SAIC Motor-CP, said an investment plan for the new plant has not to been finalised, adding no investment details would be disclosed until after the first plant reached maximum capacity, likely in three to five years.
Amnouy Sirijansawang, chief financial officer of SAIC Motor-CP, said the MG6, a sedan vehicle, is the first model made at its Thai facility. The MG6 is due to launch in the third quarter of 2014.
Mr Amnouy said the company plans to expand production in the future to cover the mini-hatchback models MG3 and MG5.
Production of Maxus Datong, a British light commercial van, is also in the pipeline after the company introduces the import to the Thai market next year.