SAIC Motor-CP Co, a Chinese-Thai joint venture, will make its planned eco-cars at its second factory, which is scheduled to start construction late next year.
SAIC Motor-CP president Wu Huan says a planned second factory will be dedicated to eco-car production under the MG brand, with annual capacity of 200,000 vehicles. Initial output is pegged at 110,000 eco-cars a year.
The eco-cars will be under the MG brand, the well-known British marque that Shanghai-based SAIC Motor Corporation bought in 2005, Wu Huan, president of the joint venture, said yesterday.
SAIC Motor-CP is one of 10 car companies that applied for the second phase of the government’s eco-car scheme.
Its investment application to make 110,000 eco-cars a year worth 7.6 billion baht won Board of Investment approval on Tuesday.
MG's eco-car specifications have been designed to meet requirements in Thailand and elsewhere, Mr Wu said.
“Eco-car production will be at our second plant, which will have maximum production capacity of 200,000 units a year,” he said.
“We also plan to make other vehicles at this factory.”
Mr Wu said his company was looking at locations in Chon Buri and Rayong provinces, the latter of which is the site of the first plant.
Last November, SAIC Motor-CP announced it would move more operations to Thailand in a bid to make the country its manufacturing base for right-hand-drive vehicles for local sales and export.
Setting up the second operation is expected to cost 30-40 billion baht.
“The future plant is planned for MG car production once the first plant’s production reaches its full annual capacity of 50,000 cars, which is expected to happen in four or five years,” Mr Wu said.
Established in 2012, SAIC Motor-CP is a joint venture between Shanghai Automotive Industry Corporation and Thailand’s agribusiness conglomerate Charoen Pokphand Group.
SAIC owns 51% and CP 49%. The 9-billion-baht first factory was built in Rayong's Hemaraj Eastern Seaboard Industrial Estate and commenced operation in June. The company launched the MG6 that same month and plans to introduce the MG3 next year.
Mr Wu said his company was unlikely to achieve this year's domestic sales target of 2,000 MG6 units due to the sluggish market. SAIC Motor-CP has to date delivered 300 MG6s to buyers.