Warisan Tan Chong Automotif and GAC Motor International enters MoU for local CKD

Transport Minister Anthony Loke at the event (centre) with Tan (fifth from left) and GAC International general manager Wei Hai Gang (fifth from right) showing the MoU documents in the presence of VIPs.

KUALA LUMPUR: Warisan TC Holdings Bhd subsidiary - Warisan Tan Chong Automotif (WTCA) Sdn Bhd - has inked a Memorandum of Understanding (MoU) with China's GAC Motor International Co Ltd for possible CKD joint ventures.

The MoU outlines the start of feasibility studies for two new completely knocked-down (CKD or locally assembled) vehicle assembly projects and is expected to be completed by July this year.

The study will look into the CKD production of the right-hand drive GAC Emkoo - a C-segment sports utility vehicle (SUV), meant for the Malaysian market as well as the left-hand drive B-segment GS3 Emzoom SUV for export to Vietnam.

The GAC Emkoo is expected to launch in Malaysia sometime this year along with the GS3 Emzoom (second quarter) and the all-electric GAC Aion Y Plus within the first half of the year.

The collaboration effectively solidifies WTCA's and the country's pivotal role as a strategic partner for the China-based carmaker's regional growth strategy through localised CKD production and manufacturing opportunities.

As a newly appointed strategic partner, WTCA is now poised to leverage its automotive experience, capability and the country's industrial ecosystem with GAC Motor International to deliver the Chinese state-owned carmaker's mobility solutions for markets in Asean.

Upon completion, it will pave the way for the formalisation of definitive agreements and help to strengthen the country's position as an automotive hub for the region.

Furthermore, the export of the Emzoom to Vietnam is said to play a pivotal role in WTCA's regional expansion plans.

The Chinese carmaker also formalised its technical collaboration with WTCA through a CKD Technical Collaboration Agreement which also grants the local company the rights to locally assemble GAC's approved lineup of vehicles.

Additionally, through a Distribution Agreement, WTCA is now entrusted with marketing, distributing and servicing of GAC's vehicles.

The collaboration with WTCA marks GAC's first overseas CKD project to help expand its global presence.

The CKD Technical Collaboration Agreement also establishes the groundwork for future collaboration in CKD assembly between the two companies.

The technical partnership between the two companies has initiated the CKD Start of Production (SoP) for the Emzoom at WTCA's Segambut plant, placing the model into a Full Production stage.

This means that the Emzoom's production has begun with deliveries set to be announced at a later date.

"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 the Asean markets with the freedom to go further," said Warisan TC Holdings Bhd chief executive officer Tan Keng Meng

A ribbon-cutting ceremony was conducted at its Segambut assembly plant to celebrate the SoP milestone, setting the stage for full mass production:

"This collective endeavour will rejuvenate regional economic and social development, injecting renewed vitality into the friendly alliance between China and Malaysia," said GAC Group president Feng Xingya.
Autos GAC
Autos Warisan Tan Chong