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On August 20, the hybrid car MG3 HYBRID+ was launched in Thailand. The launch of this car surprised Japanese automakers, which occupy 90% of the Thai market.

Targeting the Japanese car "heartland" market

Benchmarking against the world-renowned "King of Urban Small Cars" Toyota Yaris, the MG brand has high hopes for the MG3 HYBRID+.

On the same day, MG held new car launch conferences in landmark shopping malls in four major cities: Bangkok, Chiang Mai, Songkhla and Nakhon Ratchasima. The target users of the new car are young people and female consumer groups. MG hopes to reach users in the fastest and most direct way through this special launch conference format.

MG is confident that the MG3 HYBRID+ will enter the Japanese car market in Thailand. The MG3 HYBRID+ is equipped with the second-generation HYBRID system independently developed by SAIC, with a fuel consumption of as low as 3.8L/100km and can accelerate from 0 to 100km/h in just 8 seconds.

In the one-tank-of-fuel challenge held by MG, the MG3 HYBRID+'s actual fuel consumption per 100 kilometers was even lower than the book data, and it was comparable to Japanese competitors. In addition, due to the increased battery capacity of the MG3 HYBRID+, the vehicle has a better sense of control during starting and acceleration, which is in line with the more aggressive driving habits of Thai users.

The price of MG3 HYBRID+ is 579,900 to 619,900 baht. Currently, the price of Honda CITY 1.5Le electric version is 729,000 to 799,000 baht, and the price of Toyota Yaris Cross is 789,000 to 899,000 baht.

In addition to high cost performance, this car is also equipped with MG Pilot intelligent driving assistance system, including active emergency braking with automatic detection of pedestrians and bicycles, lane change assistance and other safety features. In this level of small car, such intelligent configuration makes consumers feel more value for money.

Japanese car attention

According to statistics from the Federation of Thai Industries, from January to June this year, HEV sales in the Thai auto market increased by 69.6% year-on-year, while pure electric vehicle sales increased by 6.9% year-on-year. MG3 HYBRID+ wants to "grab a piece of cake" in such a high-growth HEV market, and Japanese cars will not "sit back and do nothing."

After an in-depth test drive of the MG3 HYBRID+, Thai media believe that the new car is a strong rival to the Honda CITY and Toyota Yaris in terms of fuel economy and driving experience, and these two cars are the sales kings in Thailand's largest passenger car segment.

Japanese cars rarely have promotions, but on the eve of the launch of MG3 HYBRID+, Nissan reduced the price of its competing models by 120,000 baht (about 25,000 yuan).

In addition to Nissan, which has launched a price reduction strategy, Toyota and Honda have also taken action, starting to promote their best-selling HEV models on social media, and have also "copied" MG's one-tank-of-fuel challenge from Bangkok to Chiang Mai (750 kilometers).

Several local automotive media outlets have keenly sensed the trend of traffic, and have actively and frequently released updates on the new car of MG3 HYBRID+. They also staged a scene before the launch of Xiaomi SU7, and have all guessed the final selling price of the new car.

Chinese car companies roll out to Thailand

Japanese automakers are paying attention to MG3 HYBRID+ because the rise of Chinese brands in Thailand in recent years cannot be underestimated. In 2023, the proportion of new energy vehicles in the overall automobile market in Thailand will rise to 12%. Among them, Chinese brands will account for 78% of the market share.

In terms of "volume", Chinese automakers have not let go of the Thai market, nor have they let go of themselves.

At Bangkok's Suvarnabhumi Airport, which has an average annual passenger flow of 50 million, tourists can see a row of new energy vehicles from China parked as soon as they walk out of the airport, including Aion taxis and MG online ride-hailing cars. The lower cost of new energy vehicles brings advantages in the field of shared travel, and the way of playing in the ecosystem is what Chinese companies are good at.

Compared with the ecosystem, Chinese automakers are better at "low-price strategy." The Haval H6 HEV launched by Great Wall Motors in Thailand is priced at 1.149 million to 1.249 million baht (about 230,000 to 250,000 yuan), while the competing Honda CR-V is priced at 1.467 million baht (about 290,000 yuan) in Thailand.

When BYD Dolphin was launched in July last year, the price was 699,000 to 799,000 baht. However, the lowest price of Dolphin was adjusted to 659,000 baht at the end of last year, and it was further reduced to 559,000 baht in June this year. The method of exchanging price for volume was effective, and Dolphin became the first in the market segment, but the price was that car owners jointly complained to the Thai Consumer Association, and the price of used cars could not hold up.

Although Chinese auto brands have become famous in Thailand, in the long run, Chinese automakers will face greater challenges in expanding their market share in Thailand.

First, the price war has caused consumers to question the value retention of Chinese electric vehicles, and the local banks' loan approval rate for Chinese-branded electric vehicles has also dropped significantly. In addition, the Thai market economy has not yet fully recovered, and the overall local automobile sales are expected to decline by 20% this year. The sales growth rate of Chinese auto companies in Thailand is not optimistic.

The second is the issue of new energy vehicle infrastructure construction in Thailand. At present, there are not many public charging piles in Thailand. It is understood that there are about 10,000 public charging piles in Thailand, and the distribution is uneven. Most of them are set up around large cities in Thailand. For users from other provinces and those who need to drive long distances, traditional power models with strong fuel economy are a better choice.

In fact, the Thai market was not so competitive before. The reason why Japanese cars have been able to dominate Thailand and even the ASEAN region for a long time is not only due to their highly fuel-efficient products, but also due to their tacit understanding of group cooperation. Different Japanese automakers have their own key markets, and the key markets of each automaker are staggered, focusing on "eating all" to avoid the tragic ending of "only the winner takes all". Whether Chinese automakers can learn from Japanese companies to "go overseas in groups" may be the biggest challenge to the long-term healthy development of Chinese automakers overseas.