CP, SAIC to make MG cars

Nopadol Chiaravanont, vice president, Automotive and industrial Products Business at CP Group, said yesterday that SAIC would hold a 51-per-cent stake and CP the rest in the newly set up CP Motor Holding to facilitate the business in Thailand.

The two companies recently inked the joint-venture agreement in Shanghai.

SAIC is the largest carmaker in China with production and sales of more than 4 million units per year. The company plans to make Thailand its manufacturing base for the well-known British brand, MG, to serve both the local market and exports. It bought the MG brand in 2005.

The plant, which will be set up close to Laem Chabang seaport to facilitate overseas shipments, will require an investment of Bt10 billion in the first phase.

MG cars are expected to go on sale in Thailand in 2014, with three models being launched: the MG3, MG5 and MG6. Parts will be imported from China for assembly here.

Initial annual production will be 50,000 units, with a plan for output to eventually rise to 200,000 cars per year.

Nopadol said the establishment of the plant in Thailand would create jobs and help drive the economy into the front line in the region.

"CP Group is confident that SAIC’s experience in car manufacturing, long-time partnerships around the world, expertise and valued human resources give it a deep understanding of the global auto industry," he added.

SAIC also plans to spend Bt20 billion in Thailand at a later date in setting up a design and research and development centre. The facility will cater to 300 designers.

Nopadol said SAIC would use Thailand as the production base for right-hand drive cars for export. As a result, the CP Group has geared its investment to producing the MG brand.

CP Group is already a partner of SAIC in businesses such as motorcycle manufacturing and the distribution of air compressors for cars in China.