Thailand’s MG Factory Halts Pickup Truck Production Until 2025
The Thai automotive market continues to grapple with economic headwinds. This has prompted SAIC Motor-CP, the Chinese-Thai joint venture that manufactures MG cars, to suspend its pickup truck production in the country. The domestic market is struggling to recover due to tighter lending practices and weakened consumer purchasing power.
MG Sales (Thailand) Vice President Pongsak Lertruedeewattanavong confirmed the production halt. He emphasized that pickups represent a relatively small portion of their local manufacturing output. “Pickups are not our main products at this moment, so we are not severely affected by the production halt,” Mr. Pongsak stated. “We will resume pickup production when the market recovers.” This strategic pause allows the company to navigate the current economic downturn while minimizing potential losses.
The downturn in the Thai car market began in 2023, marked by increasing loan application rejections for prospective car buyers. Banks and financing companies, concerned about rising non-performing loans in the auto sector, implemented stricter lending criteria. This is a direct response to Thailand’s high household debt and diminished consumer spending.
Mr. Pongsak anticipates this challenging market climate will persist through 2025, citing the difficulty consumers face in securing car loans as a primary factor contributing to declining sales. He projects domestic car sales, including electric vehicles (EVs), to reach between 550,000 and 570,000 units this year. This projection contrasts sharply with the Federation of Thai Industries' report of 572,675 total car sales in 2024—a significant 26.1% drop compared to 2023. Pickup truck sales declined even more steeply, plummeting 38.3% to 163,347 units.
Despite the challenges in the pickup market, SAIC Motor-CP remains committed to its broader automotive strategy. The company operates a substantial manufacturing facility in Chon Buri, spanning 437 rai (approximately 175 acres) with an annual production capacity of 100,000 vehicles. Focusing on both domestic sales and international exports, the company aims to leverage its Thai operations as a global export hub. While MG primarily exports to ASEAN countries, Mr. Pongsak expressed confidence that the company would remain largely unaffected by any potential US auto tariff policies.
Meanwhile, MG’s focus in Thailand is shifting toward electric vehicles. Last year, the company sold 17,000 vehicles, evenly split between EVs and traditional internal combustion engine models. This year, MG aims to increase overall sales to 20,000 units, boosting its market share from 3% to 5%, with EVs projected to comprise 60% of these sales. Underscoring this commitment to electrification, the company plans to launch the new MG IM6 electric sports utility vehicle at the upcoming Bangkok International Motor Show, scheduled for March 26th to April 6th. This strategic pivot towards EVs positions MG to capitalize on growing global demand for electric mobility while navigating the current turbulence in the traditional combustion engine vehicle market, particularly within the pickup truck segment.
