SAIC, the largest automobile group in China, is establishing its office in BGC Taguig, joining other prominent brands like Toyota, Mitsubishi, Suzuki, Isuzu, Nissan, Honda, and Hyundai as national sales companies that are either fully or partially owned by the company themselves.
While SAIC already manufactures several brands that are present in the Philippines, such as Volkswagen and Maxus. it has been widely speculated that their main focus is on MG. Currently, MG is being managed by The Covenant Car Company, Inc. (TCCCI) in the Philippine market, but that is set to change as SAIC has officially confirmed its intentions.
Related: SAIC Motor has huge plans for the Philippines
As reported by AutoIndustriya, Executives from TCCCI have announced that their five-year contract as the official MG importer and distributor in the Philippines will be ending next month. Typically, such contracts are extended through negotiations, but SAIC has chosen not to pursue that route and take direct command.
It is common practice in the industry for negotiations to take place between the existing distributor and the OEM or new incoming distributor to establish a joint venture agreement. This allows the existing distributor to retain some stake in the brand, a seat on the board, and a foothold in the market. However, in this case, a joint venture was not on the table, and SAIC has opted for a 100 percent direct foreign investment.V
SAIC Motor will officially take over MG Philippines by the end of July 2023
MG Philippines will operate as SAIC Motor Philippines by the end of July 2023.
Autodeal on Jun 27, 2023You are here:HomeLatest StoriesNewsSAIC Motor will officially take over MG Philippines by the end of July 2023
SAIC, the largest automobile group in China, is establishing its office in BGC Taguig, joining other prominent brands like Toyota, Mitsubishi, Suzuki, Isuzu, Nissan, Honda, and Hyundai as national sales companies that are either fully or partially owned by the company themselves.
While SAIC already manufactures several brands that are present in the Philippines, such as Volkswagen and Maxus. it has been widely speculated that their main focus is on MG. Currently, MG is being managed by The Covenant Car Company, Inc. (TCCCI) in the Philippine market, but that is set to change as SAIC has officially confirmed its intentions.
Related: SAIC Motor has huge plans for the Philippines
As reported by AutoIndustriya, Executives from TCCCI have announced that their five-year contract as the official MG importer and distributor in the Philippines will be ending next month. Typically, such contracts are extended through negotiations, but SAIC has chosen not to pursue that route and take direct command.
It is common practice in the industry for negotiations to take place between the existing distributor and the OEM or new incoming distributor to establish a joint venture agreement. This allows the existing distributor to retain some stake in the brand, a seat on the board, and a foothold in the market. However, in this case, a joint venture was not on the table, and SAIC has opted for a 100 percent direct foreign investment.
SAIC has filed the articles of incorporation for a new company called SAIC Motor Philippines, fully owned and controlled by SAIC. Therefore, after July 2023, MG Philippines will operate as SAIC Motor Philippines.
Despite the corporate-level transition, consumers should not experience any negative effects when it comes to purchasing and owning MG vehicles. For dealers, it will be business as usual, albeit with new contacts within the company. SAIC has been actively hiring experienced executives and personnel to fill key positions, as previously reported.
Based on the experiences of other brands that have undergone a similar transition to direct OEM ownership, the MG model range is expected to improve, offering customers a wider selection. SAIC has indicated its interest in introducing new energy vehicles to the Philippine market, as stated in its articles of incorporation. So we could probably expect electrified MG vehicles to reach our shores sooner rather than later.
TCCCI has stated that there are no ill feelings or conflicts arising from this transition and that the changeover will be smooth. They will instead shift their focus to Chevrolet and further expand their model lineup.
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