Tan Chong Motor Holdings Bhd has signed a letter of intent (LOI) with Perusahaan Otomobil Kedua Sdn Bhd to support the national carmaker’s first electric vehicle (EV) project.
The agreement, inked between Tan Chong’s 70%-owned Tan Chong Motor Assemblies Sdn Bhd and Perodua Sales Sdn Bhd, paves the way for Perodua to utilise several of Tan Chong’s assembly lines for upcoming EV production.
Under the LOI, Tan Chong Motor Assemblies will provide ED (electro deposition) coating for corrosion protection, painting line services and access to designated assembly lines.
Tan Chong, the franchise holder and exclusive distributor for Nissan and Renault in Malaysia indicated that the arrangement marks a strategic opportunity to expand its involvement in the country’s growing EV sector.
The LOI took effect on Nov 13 and will conclude once both companies sign definitive agreements.
Perodua’s first fully Malaysian-made EV, expected to be named the QV-E, is set for launch at the end of this month. Prime Minister Datuk Seri Anwar Ibrahim recently described the model as a milestone for Malaysia’s automotive industry, calling it a symbol of the nation’s capability to innovate.
Anwar also announced that he will elevate the launch as a national agenda emphasised that the EV project is not just about technology, but also about jobs, innovation and Malaysia’s industrial future.
Source: The Edge
