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Taiwanese automaker China Motor Corporation (CMC) has announced it has increased the local content of its locally-assembled MG vehicles to 20%, to meet new regulations introduced by the government earlier this year.
CMC is Mitsubishi Motors’ long-standing vehicle assembly partner and also produces vehicles under its own brand. It recently began assembling MG-branded vehicles from completely-knocked down (CKD) kits supplied by Chinese state-owned automaker SAIC Motor, but was forced to halt production following the introduction of new local content regulations in August.
Under the new rules announced by Taiwan’s The Ministry of Economic Affairs, vehicles assembled in Taiwan are required to have a minimum local content of 20% in their first year of production, rising to 25% in the second year and 35% in the third year. Most vehicles currently assembled in the country already meet these requirements, supported by a strong local component manufacturing industry.
CMC now claims to have achieved the 20% minimum local content for its HS SUV, paving the way for the return of the MG brand to the Taiwanese market in the new year once the certification process is completed.
CMC vice president Chien Ching-wu said in a statement: “We are quickening our pace in boosting the local content ratio to meet the mandatory requirement in collaboration with our suppliers. The MG HS 1.5T model is the most important model among all of the MG series in the pipeline, so we will prioritize this model when applying for a local content certification. HS now contains more than 20% locally made parts.”
"China Motor increases local content for MG vehicles" was originally created and published by Just Auto, a GlobalData owned brand.
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