SAIC Motor’s Thai joint venture, SAIC Motor-CP, has made the decision to halt production of its MG Extender pickup truck in response to challenging market conditions in Thailand. The company’s assembly plant in Rayong province, with a capacity of 100,000 units per year, has temporarily suspended operations until there is a notable improvement in the market.
In 2024, the Thai domestic vehicle market experienced a significant decline, with overall sales dropping by 26% to 572,675 units. This decline was largely driven by a 38% decrease in pickup truck sales, which totaled 163,328 units for the year. The tightening of lending by banks and vehicle finance companies, as well as a rise in non-performing loans, contributed to the challenging environment faced by the automotive industry in Thailand.
MG Sales (Thailand) Company, SAIC Motor’s local distributor, reported sales of only 1,124 MG Extender models in 2024. As a result, local production of the pickup truck was reduced to a minimum as inventory levels continued to rise. Despite the challenges faced by the MG Extender, the MG brand as a whole saw a positive performance in Thailand, with sales more than doubling to 17,240 units. This growth was supported by the introduction of new models such as the MG3 and the locally-manufactured MG Mullan crossover vehicle.
Looking ahead to 2025, MG Sales (Thailand) has set a sales target of 20,000 vehicles, with a focus on expanding its range of electrified models. The company aims for electrified vehicles to account for 60% of total sales, an increase from 50% in the previous year.
Pongsak Lertruedeewattanavong, vice president of MG Sales (Thailand), emphasized that pickups are not currently a primary focus for the company and that the production halt will not have a significant impact. He expressed confidence in the market’s potential for recovery and stated that production of pickups will resume when conditions improve.
In conclusion, SAIC Motor’s decision to suspend production of the MG Extender reflects the challenging market conditions faced by the automotive industry in Thailand. With a strategic focus on electrified models and a commitment to adapting to market dynamics, MG Sales (Thailand) aims to navigate through the current challenges and position itself for success in the future.
