SAIC Motor Corporation, the parent company of MG, is set to assume direct control of the MG brand in the Philippines. This development comes as the Philippine automotive industry undergoes changes in the aftermath of the pandemic. MG Philippines, a prominent Chinese brand in the country, has been managing the brand for the past five years. Despite the challenges posed by the global pandemic, MG Philippines has achieved impressive growth, even surpassing more established car brands in sales figures. Their efforts have played a significant role in enhancing the perception of Chinese-made cars in the local market.
The contract between MG Philippines and the brand is set to conclude in July 2023, after which SAIC will take over operations. Both parties have expressed mutual respect, and discussions are ongoing to determine the future of operations beyond July 2023.
This transition is not unusual in the industry, as it is common for owners to take a more hands-on approach to operations. Hyundai Motors Philippines, for instance, recently celebrated its first anniversary after assuming control from its former distributor, while Nissan Philippines took over from two distributors in 2012.
For existing owners and prospective buyers, there will be no immediate changes. The dealer network will remain intact, and there will be no disruption to parts supply and servicing. However, it will be intriguing to observe the adjustments in operations, marketing, and sales that will occur in the coming months.
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