SAIC MG Brand Enters ASEAN Market

Going abroad has become the only way for the survival and development of independent brands. Recently, SAIC Group, which has always insisted on high-end routes, has announced that it will establish a joint venture company in Thailand to manufacture and sell its own branded MG series products for the ASEAN market. The joint venture partner is Thailand’s largest company, Zhengda Group. SAIC Motor’s 51% stake is large. shareholder. Insiders said that in the joint venture, SAIC has considerable right to speak.

As a large company that sent troops overseas early, SAIC had some gains and losses. It had folded Ssangyong and also won Roewe and MG. When the dual-brand strategy has achieved results, Roewe and MG have been able to compete with the joint venture products, and SAIC has started its overseas journey. The first is a joint venture with GM to enter the Indian market and introduce SAIC-GM-Wuling’s products to India. When General Motors increased capital, SAIC chose to dilute its shares without capital increase, and it was questioned. Insiders told reporters that this is in fact the need for SAIC's own development. In cooperation with GM, SAIC is a learner, and capital increase will not become a major shareholder. The purpose of SAIC is to sell SAIC-GM-Wuling’s products overseas, and this purpose has been achieved. In the next step, SAIC will have more say in overseas joint ventures, which is the same as the cooperation with Thailand Chia Tai Group. According to the plan, the total initial investment of the project is about RMB 1.8 billion. SAIC Group will hold 51% of the shares through SAIC-Hong Kong Investment Corporation and SAIC-British Corporation, and CEC Group will hold 49% of the shares. SAIC Motor Group licenses the Thai joint venture company to manufacture and sell its own branded MG series sedan under a technology license and trademark licensing. The Thai joint venture company plans to start putting products in the first step in 2014 and gradually form a production and sales scale of 50,000 vehicles per year. In the second step, the joint venture will also use the preferential tax policies within ASEAN to introduce more products that meet demand. Export to ASEAN and other right rudder countries, and strive to achieve 200,000 capacity planning.

As the main carrier for SAIC's own brand international operation, the MG brand has a certain reputation around the world and currently owns a number of products such as MG7, MG6, MG5 and MG3. Among them, the new right rudder MG6 model officially landed in the UK market in 2011 and was well received by local consumers. The joint venture company in Thailand is producing a new right-hand rudder MG6.