SAIC sets up MG car JV in Thailand

China's SAIC Motor, MG's parent company, on Tuesday signed an agreement with Thailand's Charoen Pokphand Group to build a joint venture plant in Thailand to make MG cars, SAIC said in a statement posted on its website.

The initial investment in the plant, which will have an annual capacity of 50,000 cars, will be 1.8 billion yuan ($285 million), with SAIC taking a 51 percent stake and the CP Group taking 49 percent.

MG has been committed to the Australian market, but the brand will also try to boost its exports to Southeast Asian countries and to New Zealand in the future. It has also set up operations in the United States, to facilitate its development in North America.

SAIC bought the assets of United Kingdom vehicle maker MG Rover in July 2005.