So i happened to talk to chinese today at the haier factory today ( lahore ) and got to know that mg is setting up their plant there. Haier has a total land of 600 acres together also potons are assembled there.
So the surprising thing i got to know is that javed afridi has ordered to set up a plant for mg ev first and he said they're working with the government about the ev policy.
I happen to have good contacts with haier employees and seniors and they have good relationships with the afridi family.
So we got discussing and he told me a lot of the insight about the under invoice thing.
So what i got to know is this SAIC who's the manufacturer of mg is selling mg hs at about 10 lack loss per vehicle and similarly their next plan is the mg3 which they'll sell at a est loss of 5 lack and price it within 20.
There are 2 reasons to this =
1. To get a hold in the industry
2. To give competitors a tough time.
Keep in mind loss is nothing for chinese.
Now I'll explain a another scenario
I'm a Petroleum engineer i work in an oil and gas industry, I'm gonna cut it all short and tell you this that my company is working with ogdcl,ppl the gaints of oil and gas in Pakistan, so my company is working here since 2003 and from 2003 till date, we are working at loss.
NO PROFIT, no profit for a oil exploration company is no joke, it's way bigger than the car industry.
Why my company is doing this? When this company came to Pakistan they're were around 10 competitors now? 3 4 left and those too are badly wounded cause my company has dropped the rate so low that no one could survive.
SAIC is a huge huge company, they're playing the same game as well.
I've lived in china many years, i work with them etc these people would do anything to get a start. Look at zong for instance, how it grew.
Mg is going to stay and make a huge impact.
And yes they somehow got the rules amended that they can import 2000 vehicles per month, where as before the rules was around 200 i guess.
Plus all the info is legit and is from the insiders.
Chinese mafia ( the real mafia i mean ) can bare any loss for years and years, then they play as a alone wolf.
Like my company is playing, it kicked out Schlumberger, weatherford, exalo.
The biggest oil and gas company in the world.
They packed up sold everything and are gone.
So this car industry will be a pie for them.
