Tan Chong, China’s GAC sign MoU for CKD production
Move involves studying the manufacturing of EMKOO for Malaysia and GS3 EMZOOM for export to Vietnam
Warisan TC Holdings Bhd’s WTC Automotif (M) Sdn Bhd (WTCA) and GAC Motor International Co Ltd have signed a memorandum of understanding (MoU) to initiate feasibility studies for two new completely knocked-down (CKD) vehicle assembly projects in Malaysia.
The MoU involves facilitating the study into CKD production of the right-hand drive GAC EMKOO for the Malaysian market and the lefthand drive GAC GS3 EMZOOM, destined for export to Vietnam.
If realised, this collaborative effort will solidify Malaysia and WTCA’s pivotal role as a strategic partner for GAC’s regional growth strategy through localised CKD production and manufacturing opportunities.
As GAC’s strategic partner, WTCA is poised to leverage its automotive experience, capability, and Malaysia’s industrial ecosystem with GAC Motor International to deliver GAC mobility solutions for the Asean markets.
Warisan TC Holdings Bhd CEO Tan Keng Meng said the partnership and technical collaboration with GAC Motor International underscores a shared vision to scale up CKD capabilities in Malaysia.
“It will be a strong testament to the depth of our partnership and our collective commitment to provide cutting-edge mobility solutions, integrating sustainable manufacturing practices, creating economic opportunities, and ultimately providing customers across Asean with the freedom to go further,” said Tan during the recent signing ceremony.
The feasibility studies are expected to be completed by the end of July. Upon its completion, it will pave the way for the formalisation of definitive agreements,
strengthening Malaysia’s position as the automotive hub for Southeast Asia markets.
Furthermore, the export of the GAC GS3 EMZOOM to the Vietnamese market will play a role in WTCA’s regional expansion plans.
Meanwhile, GAC group general manager Feng Xingya said that the cooperation agreement on the CKD project between both companies is an extension of the cooperation on the exports of completely built up (CBU) vehicles to local CKD production.
“Upon completion, the project is expected to generate an annual output value exceeding RM200 million and create over 1,000 jobs in upstream and downstream industries.
“We will further merge into the Malaysian market, insight into the needs of local users and deliver more products and services,” he said.
Transport minister Anthony Loke expressed that going forward, there are more opportunities for cooperation between both nations in transport and mobility as China’s transition to low carbon vehicles including EV passenger cars, EV taxis, and EV buses have been impressive.
He noted that Guangzhou is the leader in China in achieving 100% electrification of public buses and public transport vehicles.
Complementing the regional growth strategy, GAC and WTCA formalised their technical collaboration through the CKD technical collaboration agreement, which grants WTCA the rights to locally assemble GAC’s authorised vehicle models using CKD kits and components manufactured to GAC’s stringent global technical specifications and quality standards.
Additionally, WTCA through its distribution agreement is entrusted with marketing, distributing and servicing these vehicles, reflecting a joint effort to deliver products and services to customers.
The collaboration with WTCA marks GAC’s first CKD project in an overseas market. The CKD technical collaboration agreement establishes the groundwork for future collaboration in CKD assembly between GAC and WTCA as well as showcases their shared determination to forge a strong technical partnership dedicated to delivering top-quality vehicles to customers.