Yesterday, while most Malaysian were doing their shopping for the upcoming Id celebrations, WTC Automotif (M) Sdn Bhd (WTCA), a subsidiary of Warisan TC Holdings Bhd, and GAC Motor International Co., Ltd. (GAC Motor International) entered into a Memorandum of Understanding (MOU) to initiate feasibility studies for two new completely knocked-down (CKD) vehicle assembly projects in Malaysia. The signing is a start for local assembly for GAC vehicles, namely the study into CKD production of the right-hand drive GAC EMKOO for the Malaysian market and the left-hand drive GAC GS3 EMZOOM, destined for export to Vietnam. The event was witnessed by the Malaysian Transport Minister, The Honourable Anthony Loke.
As GAC’s strategic partner for Malaysia, and most likely the South East Asian region with this MOU, 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. If realized, this collaborative effort will allow Malaysia and WTCA’s role as a strategic partner for GAC’s regional growth strategy through localized CKD production and manufacturing opportunities.
Warisan TC Holdings Bhd, Chief Executive Officer Tan Keng Meng said the partnership and technical collaboration with GAC Motor International underscores a shared vision to scale up CKD capabilities in Malaysia. He said, “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,”
The feasibility studies are expected to be completed by the end of July. Upon its completion, it will pave the way for the formalization 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 pivotal role in WTCA’s regional expansion plans.
From what we have been told, the local production of the EMZOOM SUV is indeed feasible and has been ongoing as we speak at Tan Chong's Segambut plant. The export market study with a Vietnam as a starting market in LHD form is scheduled to be completed by the middle of this year. Vietnam was a choice as the Tan Chong group has a foothold in the vehicle sales market over there and since the country has a burgeoning passenger car market, it is in the best interest for both companies to start sales of the GAC brand over there as the first phase for GAC exports from Malaysia.
Key aspects of the strategic move by GAC and WTCA
Technical Collaboration and Integration for Accelerated Implementation
Complementing the regional growth strategy, GAC and WTCA formalized their technical collaboration through the CKD Technical Collaboration Agreement. This landmark agreement grants WTCA the rights to locally assemble GAC’s authorized 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 exceptional products and services to customers.
This collaboration with WTCA marks GAC’s first CKD project in an overseas market, symbolizing a significant step towards expanding its global presence.
The CKD Technical Collaboration Agreement not only establishes the groundwork for future collaboration in CKD assembly between GAC and WTCA but also showcases their shared determination to forge a strong technical partnership dedicated to delivering top-quality vehicles to customers.
Launch of Malaysian CKD Start of Production Demonstrates Collaborative Excellence
The technical partnership between GAC and WTCA bore fruit with successfully initiating the CKD Start of Production (SOP) for the GAC GS3 EMZOOM compact SUV at WTCA’s Segambut plant.
This achievement was realized in just 13 months following the project announcement, a notable achievement compared to the industry average.
A ribbon-cutting ceremony was conducted at its Segambut assembly plant to celebrate this SOP milestone, setting the stage for full mass production.
Tan said, “Our team at WTCA is immensely proud of the seamless collaboration with our esteemed GAC partners in executing an accelerated SOP for the GAC GS3 EMZOOM. This accomplishment serves as a testament to our robust technical integration capabilities and vast collective expertise in efficiently delivering manufacturing excellence while maintaining the highest quality standards.”
With the SOP initiation, the CKD production of GAC GS3 EMZOOM has now transitioned into the Full Production stage.
The President of GAC Group, Feng Xingya, who attended the event, expressed his strong optimism about the partnership between GAC and Tan Chong Group. “I eagerly anticipate the ongoing support from governmental bodies and individuals in both nations. GAC is steadfast in its commitment to closely collaborate with Tan Chong Group, seizing emerging opportunities, deepening cooperation, optimising resource synergy, leveraging complementary strengths, and crafting a strategic win-win situation for both entities. This collective endeavour will rejuvenate regional economic and social development, injecting renewed vitality into the friendly alliance between China and Malaysia,” he added.
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