About last night: Why SAIC Motor Philippines' arrival is a big thing in the industry

Last night, July 19, 2023, SAIC Motor Philippines (SMP)  formally introduced itself to its dealer principals, bankers, and stakeholders as the new distributor of MG vehicles in the country.

After months of speculation, SMP, the fully-owned subsidiary of SAIC Motor Corporation Limited, reportedly China’s largest car manufacturer, finally broke cover. The event officially confirmed its takeover of the MG brand and business starting today, July 20, 2023. 

As we reported in May, SMP replaces The Covenant Car Company Inc. and will soon introduce new vehicles, including EVs, in the country. 

Also Read: TCCCI out; SAIC Motor Ph to take over MG brand by July 2023

According to our same source last May, the SMP will retain the services of about 95% of the MG dealer network. The same network TCCCI set up in its five years of stewardship of the MG brand. Our source also confirmed back then that EVs would become part of the future lineup of MG in the Philippines.

At last night’s dinner event, SMP showcased two EV crossovers, the MG ZS EV and the Marvel R. Along with them, the MG4 hatchback was also on display for the dealers to see what the future has in store for their businesses.

You can see photos of the event from this album by FC Oliver IM advertising agency which handled the setup of the venue.

Also Read: 2023 MG4 EV gets 1,598 bookings in Thailand on first 8 hours of sale, starts at under ₱1.4M

Business as usual

But more than a bevy of new models, the dealers were also curious about the prospects of keeping the MG brand in their portfolios, this time with SMP at the helm.

Michael Goho, executive vice president of Gateway Group, a multi-brand nationwide dealership network based in Cebu, maintains a positive outlook when asked about SAIC Motor Philippines' impact on their business. “More aggression. More support. More products” was his direct reply to our inquiry on what dealers can expect from SMP.

Another dealer principal we asked even went as far as to explain the ramifications of having a subsidiary from the mother company handle the brand. 

“All are normal,” he shared with us on the condition of anonymity. “Maybe a better array of units and support since the mother company is the one operating. It is always like this, naman. It happened to Nissan and Hyundai. Better days ahead for both MG customers and dealers,” he foresees. 

Based on my experience in the industry, being a former senior marketing manager for a Japanese car distributor, "A better array of units" could mean the EVs that TCCCI did not bring into the country. And "Support" could mean better marketing exposure for the MG brand and subsidies to the dealerships' marketing, sales, aftersales and commission structure. With SAIC itself funding the operation direct from China, we can only imagine how far it will go to promote MG and its future product lineup.

As we await official word from SMP regarding their immediate plans, we intend to dig deeper into SAIC’s arrival.  Also worth keeping an eye on is what it could mean to other marques that it handles in China which are already being distributed in the country such as Maxus, Volkswagen, and Wuling.

Our gut tells us that one or two of these brands might fall under SMP’s wings soon.