MG, owned by Chinese company SAIC, started making its MG4 model in Thailand's Chonburi province last November. Now, they're thinking about shipping these cars to Europe. The company hasn't decided yet on building its own plant in Europe.
The EU recently slapped a 36.3% special tax on top of the usual 10% duty for Chinese electric cars. This means MG would have to pay a whopping 46.3% to bring its cars into Europe from China. Such high taxes would make MG cars cost way more than other brands in the EU.
Suroj Sangsnit, an SAIC manager, said the high import duties and rules about sharing technology are pushing Chinese car makers to make their cars in other countries.
But sending cars from Thailand to Europe isn't easy. For the EU to see these cars as Thai-made, 40% of the parts must come from Thailand. Also, Thailand doesn't send any cars to Europe right now because there's no trade deal between them. This means MG might still have to pay 10-20% in taxes to get their Thai-made cars into Europe.
There's hope, though. Thailand and the EU are working on a free trade agreement. They want to finish it by the end of the year. This deal could open up EU markets for Thai electric car makers.
Even if this plan works out, it'll only help with the MG4, which is MG's top-selling car in Europe. MG's other electric cars like the ZS SUV, Marvel R, and MG5 electric estate are still made in China. So, the Thailand plan won't work for these models.
MG has been thinking about building its own factory in Europe since at least last summer. The EU put these high taxes on Chinese electric cars to protect its own car industry from Chinese competition.
For Thailand, this could be a big chance. The country is starting to make more electric cars, and Europe could become a new market for them if the trade deal goes through.
Source: Nationthailand
