Construction of new Chery factory in Lembah Beringin completed

Quick look:

• Chery has been committed to localisation of production from the start, and is making a RM2.2 billion investment to establish the Chery Smart Industrial Park in northern Selangor.
• The new production facility will assemble for Chery’s brands – Chery, iCAUR, OMODA | JAECOO, as well as the soon-to-be-launched LEPAS.

Although Chery had a presence in Malaysia 20 years ago, it’s only in the past few years that it has become greatly involved in its business. It established its own subsidiary to manage the business activities which included local assembly of selected models right from the start.

Like other automakers who want to sell cars in Malaysia, Chery has understood that volume growth can only happen if there is local assembly, for which the government offers incentives that lower costs and allow more competitive pricing.

Local assembly from the start
From the start of its activities 3 years ago, Chery stated that it would focus on localising production not just to get the incentives but also to help develop the local auto industry further. The automaker has been praised by MITI for having been among the companies that has delivered on this commitment.

Moving forward, Chery is preparing for its Malaysian operations to have a bigger role, especially in regional manufacturing. Although its vehicles are currently assembled at two sites (Inokom in Kedah, and its own facility in Selangor), it will set up a large vehicle assembly facility of its own in the Beringin High-Tech Auto Valley in northern Selangor known as the Chery Smart Auto Industrial Park.

This will be Chery’s 11th production base outside China and serve as a foundational base for its long-term operations within the ASEAN automotive market.

RM2.2 billion investment
The initial capital expenditure of RM2.2 billion will enable the industrial park to advanced and grow Chery’s local production and engineering capabilities. Besides having local vendors nearby for quicker parts logistics, the facility will assemble for brands such as Chery, OMODA | JAECOO, iCAUR and LEPAS.

There are likely to be fully electric models as well, enabling Chery to avoid the minimum RM200,000 price level that the government has set for EVs that are imported in CBU (completely built-up) form. However, as the factory is a brand new one, it would require a manufacturing licence from MITI and therefore, Chery would be required to export 80% of its production (a controversial matter relating to BYD’s plans for a factory) unless there is some other ‘customised incentive’.

Following initial groundbreaking in 2025, the topping-off ceremony was held today at the 200-acre site in Lembah Beringin with the symbolic installation of the final roof tile. The event was witnessed by the Menteri Besar of Selangor, the Selangor State Executive Councillor for Investment, Trade and Mobility, and members of Chery’s Corporate Malaysia’s executive management team.

Following this structural completion, work will immediately begin on interior outfitting, specialized machinery installations, and technical systems integration. Assembly operations are expected to begin in 2027.

Centralized automotive city
State officials view the facility as a core driver for regional industrial planning. The investment aligns with broader zoning initiatives aimed at creating a consolidated automotive manufacturing cluster. The Selangor state government’s objective is to build a centralized automotive city where vehicle assembly operations, Tier-one component suppliers, engineering research units, and technical training facilities operate in geographical proximity to localize the industrial supply chain.

“Today’s topping-out ceremony marks an important milestone for Chery in Malaysia. It reflects not only the progress of this project, but also our strong confidence in the Malaysian market and its potential as a regional hub,” said Michael Chew, Senior Director, Product Strategy and Fleet Sales of Chery Corporate Malaysia.

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