Millennium Group Corporation (Asia) Public Company Limited (SET: MGC) has outlined a three-phase business strategy in collaboration with XPENG to address changes in Thailand’s excise tax structure. The group will be focusing on maintaining vehicle sales and deliveries, strengthening competitiveness, and managing working capital amid evolving market conditions and government policies.
Short-term plan
In the short term, MGC and XPENG have established a framework to manage vehicle imports and deliveries during the transition period through approximately mid-2027. The company will manage import volumes and inventory on a model-by-model basis, aligning them with bookings and market demand.
Actual delivery volumes will depend on production schedules, shipping arrangements, and import clearance procedures under the applicable regulations. MGC will continuously review its operational plans to maintain appropriate levels of ready-to-deliver inventory while managing working capital and controlling inventory risks.
Medium-term plan
MGC is monitoring further details of the government’s transitional measures and related regulations to assess their impact on costs and adjust its business strategy in coordination with XPENG.
Vehicle pricing will be considered on a model-by-model basis, taking into account post-tax costs, market competition, customer response, and commercial support from the manufacturer.
The company has not yet determined how much of the additional tax burden, if any, will be passed on to vehicle prices. Any pricing adjustments will be based on market conditions, with consideration given to maintaining profit margins and business competitiveness.
Long-term plan
For the longer term, MGC is preparing and conducting feasibility studies on the potential establishment of an electric vehicle manufacturing plant in Thailand in collaboration with XPENG.
The study will cover business viability, production volumes, the readiness of local parts suppliers, and the ability to comply with local content requirements.
The operating model and timeline for establishing the plant will depend on the study’s findings and relevant regulatory requirements. MGC said it would disclose further developments once details are sufficiently finalized for public disclosure.
MGC reaffirmed its commitment to continuing its partnership with XPENG in Thailand, emphasizing customer confidence, product quality, and after-sales service standards, alongside efficient business management to adapt to changing market conditions and government policies.
The company also stands ready to work with business partners and relevant authorities to support the development of Thailand’s electric vehicle industry and establish a foundation for stable and sustainable long-term growth.
