2 weeks Ago
MG Sales (Thailand) is not limiting itself to manufacturing only electric vehicles (EVs), despite the growing popularity of the next-generation segment. The company, a Chinese-Thai joint venture under SAIC Motor-CP that produces cars for the MG brand, is determined not to exit the petrol-fuelled vehicle segment, instead offering its customers a wide range of cars, including those powered by internal combustion engines (ICEs) and zero-emission EVs. MG Sales believes this strategy will help it survive tougher competition in the Thai automotive industry, said Pongsak Lertruedeewattanavong, vice-president of MG Sales (Thailand).
From its inception in Oxford, England, in 1924 as Morris Garages, widely known as MG, the company strengthened its brand after acquisition by Chinese state-owned Shanghai Automotive Industry Corporation (SAIC). This firm later formed a joint venture with Thai conglomerate Charoen Pokphand (CP) Group to market the cars in Thailand. SAIC helps MG with global sourcing of automotive components, supply chain management and quality control, while new designs and technologies for the cars are determined by a team of engineers and designers in Birmingham.
"The growth of MG is not only based on the strong brand, but also our commitment to building a path to success through innovative car designs and performance to satisfy customer needs," said Mr Pongsak. CONTINUITY MG will continue to produce ICE-based cars despite tax cuts and government subsidy packages to stimulate the production and purchase of EVs, he said. The EV incentive packages support Thailand's goal to become a regional hub of EV production.
Under its "30@30" policy, the country expects EVs to represent at least 30% of total motor vehicle production in Thailand by 2030, with production estimated at 725,000 zero-emission cars, 675,000 electric motorcycles and 34,000 electric buses and trucks. However, the Industry Ministry said earlier authorities will continue to support ICE car manufacturers that have operated businesses in Thailand for more than a decade. MG agrees with this government stance, said Mr Pongsak.
"Our factory will continue to produce ICE-powered cars," he said. "Thailand has not yet transitioned its automotive industry fully to embrace 100% battery EVs [BEVs] because the existing auto facilities and the market are primarily tailored for ICE users." During the first half of 2024, ICE-powered cars posted the highest sales totalling 82,660 units in the passenger car category, followed by hybrid EVs (HEVs) at 67,110 units and BEVs 33,508, according to the Federation of Thai Industries (FTI).
Most pickup buyers prefer ICE-based vehicles, said Mr Pongsak, indicating the popularity of this segment in the Thai market. "If you look at the Thai economy, agriculture is an essential part and drivers in the farming sector use ICE-based vehicles," he said. A robotic arm manufactures an EV battery at an MG factory in Chon Buri.
RISE OF HYBRID MG plans to invest in HEV manufacturing, believing this type of car will become more popular as the country promotes greater use of more environmentally friendly vehicles, said Mr Pongsak. HEVs seem to satisfy buyers' needs during the transition from ICE to electric mobility technology, he said. The vehicles employ both ICE and batteries, so drivers need not worry about finding EV charging facilities.
The growing popularity of HEVs also results from the Board of Investment's (BoI) launch of incentive packages to promote the production of HEVs, said Mr Pongsak. Manufacturers seeking a lower excise tax are required to invest at least 3 billion baht to produce HEVs domestically, according to the BoI. MG plans to make HEVs in Chon Buri where its car factory is located.
The facility, located in the WHA Eastern Seaboard Industrial Estate 2, has annual production capacity of 100,000 cars, including BEVs and ICE-powered cars. According to the FTI, sales of HEVs soared by 69.6% for the first six months of 2024 year-on-year, compared with a 6.
9% gain for BEVs. In June alone, some 9,846 HEVs were sold, a year-on-year gain of 59.4%.
BATTERY INVESTMENTS The growing demand for HEVs does not mean BEVs will become less important in Thailand, as domestic manufacturing of the latter keeps growing via state incentive packages. "The Thai automotive industry will see more BEV manufacturing plants next year, helping the country move towards its goal of becoming a regional EV production hub," said Mr Pongsak. The increase is partly attributed to the impact of geopolitical conflicts, which caused entrepreneurs to consider relocating or expanding their businesses to Southeast Asia.
Some of these entrepreneurs are Chinese automakers. MG, BYD and GWM, all from China, produce BEVs in Thailand. They sell BEVs domestically and use the country as an export base.
He said MG was among the first car companies to acknowledge the growth potential of Thailand's EV industry, investing 30 billion baht to bolster its EV business here over the past decade. MG has 150 showrooms in Thailand and a network of 150 EV charging stations to serve customers. During the first half this year, new registrations of all types of BEVs, including electric motorcycles, increased by 20.
6% to 51,911 units, according to the FTI, citing statistics from the Department of Land Transport..
