Wednesday, December 11, 2024

Tan Chong Motor starts exports of Malaysian assembled Nissan to Thailand

On 4 December 2024,Tan Chong Motor Holdings Berhad (TCMH) marked a significant milestone with its first export of Malaysian assembled Nissan vehicles to Thailand. The first batch of the Nissan Serena S-Hybrid, which were assembled at TCMH’s Serendah plant in Selangor, is expected to commence shipment in December 2024. This is the reason why I am actually quite keen to write about this bit of news as this highlights efforts in the Malaysian automotive industry to be more outward looking.


According to TCMH, the latest endeavour by aligns with Malaysia's upcoming role as ASEAN Chair in 2025, as it shows Malaysia's contribution to regional economic cooperation and advancing the ASEAN integration agenda. By leveraging cross-border trade, this initiative not only strengthens economic ties but also bolsters Malaysia's standing in the automotive industry of the ASEAN region. On a smaller scale, such export projects allow more to be done by the staff at the Serendah plant and this generates more skill based workers in the long run.


It also utilises the production capabilities of the plant. While it is operated by TCMH, it was set up exclusively for the local assembly of Nissan vehicles here only even though Tan Chong also assembles other makes from various companies at their other production facilities. The Serendah plant is now utilised a little better because of this.


"This milestone underscores the strength of our collaboration with Nissan Motor Co., Ltd.," said Daniel Ho Wai Ming, Group Chief Executive Officer of TCMH. "We are deeply appreciative of the ongoing support and guidance from Nissan, as well as the strategic backing from the Ministry of Investment, Trade and Industry (MITI), the Malaysian Investment Development Authority (MIDA), the Malaysia External Trade Development Corporation (MATRADE) and Malaysia Automotive, Robotics and IoT Institute (MARii). This achievement reflects the success of Malaysia’s National Automotive Policy in strengthening local manufacturing capabilities. We are excited about expanding our export portfolio, and further solidifying Malaysia’s position as a key automotive hub in ASEAN."


As the plant operates based on adhering to Nissan Motor Co., Ltd.'s stringent Global Production & Quality Standards, the Serendah facility upholds the required benchmarks for precision engineering, safety, and quality control. These standards, recognised globally, ensure that each vehicle meets Nissan’s high expectations for reliability and innovation, setting a strong foundation for the export readiness of the plant.


There are Expansion Plans for Nissan in the ASEAN Market. TCMH has outlined plans to expand its export offerings, with additional models in 2026 anticipated for regional distribution. This diversification aims to cater to the increasing demand for quality Nissan vehicles across ASEAN markets, enhancing the company's position as a key exporter. It also cannot come sooner as over the past decade or so, Nissan has seem to have been slightly neglected in terms of its vehicle portfolio here in South East Asia with no really special models that are catered for our market especially in the compact and affordable car category (on the Malaysian side especially from what I have been observing).


"The successful export of the Nissan Serena to Thailand represents a significant step in our partnership with Tan Chong Motor. We are excited to see Tan Chong's growing role as an export hub. This collaboration highlights our shared vision for Nissan’s growth in Malaysia. Nissan and our partner aim to keep growing our footprint and making more contribution to Malaysian society”, said Asako Hoshino, Chief Brand and Customer Officer, MC-Japan-ASEAN Chairperson of Nissan Motor Co., Ltd.


Serendah Plant Capabilities

TCMH Group has been the official franchise holder for Nissan (previously known as Datsun) since 1957 and operates its Serendah plant as a key production facility, which commenced operations in 2007. The facility, which has earned ISO 9001 certification for Quality Management Systems and ISO 14001 for Environmental Management, recently integrated a Floating Large-Scale Solar Photovoltaic (LSSPV) system to enhance its sustainability profile.


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