In recent years, there have been many new players entering the car market and their entry has been relatively easy. The companies that have been around a long time had it harder and have made big investments over the years, and still face some challenges when it comes to dealing wit the government. Understandably, they wonder why these newcomers have it so easy when some don’t even make any meaningful investments to develop the local industry.
But not all the newcomers are just coming to do business and not investing as well. Some have already started assembling locally and in time when their operations are more established, they even plan to export to other countries.
Good corporate citizen
Chery is one of those companies that is becoming a good corporate citizen as it has not just started local assembly from the start but also invested in its own plant in Shah Alam, Selangor. And while some companies have announced plans to further their business here, Chery Malaysia is not just ‘all talk but no action’.
The automaker. China’s leading vehicle exporter for 22 years, had already chosen Malaysia to establish a production hub and it is really doing it. In February, it revealed that the new production base will be at the Beringin High-Tech Auto Valley (BHTAV) in Lembah Beringin in north Selangor. It will spend RM2.2 billion to establish the Chery Smart Auto Industrial Park which is targeted for completion in 2026.
Bringing suppliers to Malaysia
Moving forward, it has now launched the Chery Premier Supply Chain Synergy Programme as a strategic initiative to support its manufacturing activities at the industrial park. This initiative will bring together 12 leading Chery technology suppliers from China and 23 Malaysian suppliers, creating a powerful platform for collaboration and growth.
The partnerships to be formed will focus on automotive components, technology transfer, and joint investments, strengthening Malaysia’s position in the global automotive supply chain. The supply chain initiative addresses the growing demand for electrification and smart mobility solutions, positioning Malaysia at the forefront of automotive innovation.
The Malaysian Investment Development Authority (MIDA) is collaborating with Chery Corporate Malaysia on this initiative with the support of the Ministry of Investment, Trade and Industry (MITI) and the Malaysia Automotive Robotics & IoT Institute (MARii).
Commitment to championing localisation
“This collaboration reflects Chery’s commitment to championing localisation and fortifying our supply chain ecosystem in Malaysia. As part of Chery’s broader strategy to deepen our roots in this market and lead the advancement of a modern, inclusive automotive industry, we are proud to work hand in hand with local suppliers to foster sustainable growth and resilience. By creating a dynamic platform for cross-border synergy, we aim to ensure that suppliers from both Malaysia and China benefit mutually through the strategic exchange of knowledge and technology in automotive engineering and advanced manufacturing,” said Leo Chen, Executive Vice-President of Chery Corporate Malaysia.
“This initiative represents our long-term vision to build an integrated, future-ready supply chain that drives mutual advancement and strengthens Malaysia’s position as a competitive and innovative automotive hub in the region,” he added.
As a start, 4 strategic Memoranda of Understanding (MoUs) were signed at the event. The companies involved are:
- Wuhu Atech Automotive Electronics Co., Ltd and Multi-Code Electronics Industries (M) Bhd.
- Cheling Smart Mobility Technology (Wuhu) Co., Ltd and Multi-Code Electronics Industries (M) Bhd.
- Zhejiang Wanliyang Co., Ltd and Chery Corporate Malaysia Sdn. Bhd.
- Wuhu Qida Power Battery Systems Co., Ltd and Chery Corporate Malaysia Sdn. Bhd.
Highlighting the significance of the Chery programme in realising Malaysia’s National Automotive Policy (NAP) 2020, Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid, Chief Executive Office of MIDA, said: “This inaugural programme directly supports our commitment to fostering collaboration between Malaysian vendors and Chery China. We aim to unlock mutually beneficial opportunities that drive growth and innovation, aligning perfectly with NAP 2020’s objectives of promoting local vendor development, supporting next-generation vehicles (NxGV), and incorporating Industry 4.0 practices. By fostering these vital links, we envision a future rich with technology transfer, streamlined supply chains, and enhanced industrial capabilities, ultimately benefiting both Malaysia and Chery.”
