SAIC to ramp up vehicle production in Pakistan

China's largest carmaker SAIC Motor is to scale up vehicle production in Pakistan via its local joint venture, said a senior company executive on Tuesday.

"Our plant's renovation will be finished this month, so we can soon supply locally produced vehicles in Pakistan," said Yu De, managing director of SAIC Motor International Business Department.

The joint venture, called MG JW Automobile, is built by JW-SEZ (Private) Limited and SMIL, which is a subsidiary of SAIC Motor.

Yu said the joint venture's first production model rolled off the assembly line in May. Imported SAIC models are popular in the country.

"The sales are exhilarating. We are confident in the Pakistani market. We will scale up our investment and introduce our latest models and best service to our Pakistani brothers and sisters," said Yu.

The Pakistani plant is one example of SAIC Motor's overseas business growth. In the first six months of the year, SAIC sold 265,000 vehicles in overseas markets, up 112.8 percent from the same period last year. It expects sales to reach 550,000 units over the whole year.

"Considering the growth in the first half and models we are going to launch in the second half, there will be no problem for us to reach the goal," said Yu.

SAIC Motor has built around 1,000 dealerships and service outlets in some 70 countries and regions.

Of them, big markets include Europe, the Middle East, Australia and New Zealand, ASEAN countries and India, where annual sales can reach around 50,000 units.

Electrified vehicles from SAIC's MG and Maxus brands are making swift inroads into European markets.

In the first half of the year, over 12,000 electric vehicles and plug-in hybrids were delivered in Europe, accounting for almost 60 percent of all SAIC sales on the continent.

"Our rivals are local European brands. In France, they are Renault, Peugeot and Citroen," said Liu Xinyu, president of SAIC's French subsidiary.

Liu said SAIC's success in Europe lies in its products and service. "Our two models in France have 5-star safety ratings and we offer a seven-year warranty, which is the longest in the market."

SAIC expects its overseas sales to reach 1.5 million units by 2025, accounting for 15 percent of its total sales for that year.

Of them, one fifth, or 300,000 vehicles, would be sold in Europe, of which 70 percent to 80 percent would be electric vehicles or plug-in hybrids, said the carmaker.