SAIC Motor Corporation (600104.SH) said Tuesday it will found a joint venture with its main shareholder SAIC Group to develop and produce hybrid and electromotive vehicles using alternative energy, the Shanghai Securities News reported.
Wu Huan, president of the company, confirmed that 110,000 units of the new plant’s overall annual capacity will be allocated to the production of eco-car, to be sold across the ASEAN region under the MG brand. The remainder of the plant’s capacity will be used to produce other MG vehicles.
SAIC Motor-CP Co Ltd already has a 50,000-unit assembly facility in Rayong, which began assembling the MG6 model earlier this year. Local sales of this model have been disappointing so far. Only 300 units have been sold since its launch in June – well short of the full-year target of 2,000 units.
The MG3 will be assembled at the plant from next year.
Production at the second plant is expected to start in several years time, once the existing plant reaches full capacity.