THE Chery Corporate Malaysia Sdn Bhd factory in Shah Alam marks the first local assembly facility (CKD) in the Asean region for the premium SUV sub-brand, Jaecoo.
The launch was commemorated with the maiden Jaecoo J7 all-wheel drive (AWD) witnessed by Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz and China Industry and IT Minister Dr Jin Zhuanglong.
Chery Automobile Co Ltd chairman Yin Tongyue said the Jaecoo J7 AWD and two-wheel drive (2WD) variants will be the inaugural models assembled at the facility.
“The set-up of the factory has created 500 new jobs, with the potential for further growth in line with market demands.
“The facility is also geographically close to Malaysia’s busiest port, the second-largest in South-East Asia, which primes the automaker’s readiness to export to the ASEAN region in the future,” he said.
Strengthening Local Commitment
Yin said the launch was a positive leap for Malaysia’s automotive industry and economy while strengthening the value chain of Chery and Jaecoo offerings to customers.
“Paired with our strong service network built with our local dealer partners, Chery is excited to deliver best-in-class vehicles equipped with innovative technology and the absolute best customer experience to the Malaysian market.
“To date, Chery has created over 1,000 jobs in Malaysia through its local operations. The brand also has a network of 100 sales and service centres across the nation,” he added. Yin also mentioned that the energy efficient vehicle (EEV) market has received a positive response from customers in Malaysia towards the brand and its offerings by Chery and Jaecoo.
“With an electrified future on the horizon, Chery is excited to support the growth of electric vehicles (EV) in Malaysia.
“In line with its brand ecology, ‘New Energy, New Eco, New Era’, the market recently got a taste of its future EV portfolio, previewing the Tiggo 8 Pro Plug-in Hybrid Electric Vehicle (PHEV), Jaecoo J7 PHEV and the Jaecoo J6 full-fledged EV at the Malaysia Autoshow 2024 in May,” he added.
Strategic Expansion and Regulatory Compliance
Meanwhile, Chery International president Zhang Gui Bing said they need to adhere to external regulations in Malaysia.
“If we want to enjoy benefits, such as the mega unit tax relief, we must comply with these regulations, which are essentially political measures.
“Our target is to achieve both product localisation and market localisation in Malaysia,” he said.
He also said investment value in their research and development (R&D) is significant.
The company is also expanding its efforts in other countries, taking a step-by-step approach for its R&D centres in Malaysia and other markets.
“At this moment, some of our projects are still in progress, including obtaining necessary certifications, which will greatly enhance our public image.
“We are focusing on the Jaecoo brand and generally all Cher y models as well,” Zhang added.
Govt Endorsement and Future Prospects
Meanwhile, Tengku Zafrul said that with a presence of less than a year in the country, Chery’s growth “has been nothing short of extraordinary” with its very own assembly plant in Shah Alam.
“Since launching two models, the Omoda 5 and Tiggo 8 Pro in July last year, Chery has achieved impressive feats, including the recent rollout of its 10,000th locally assembled vehicle at Inokom’s Kulim plant,” he said.
He added that this achievement is a clear indication of Chery’s dedication to quality and efficiency, working closely with local partners to meet the demands of our automotive market.
Tengku Zafrul said that the new facility symbolises not just an expansion of Chery’s operational capabilities but also its unwavering commitment to assembling vehicles that are both technologically advanced and affordable, which promotes domestic production and job creation.
He also said Chery’s swift move into localisation involving substantial investment in local vendors.
This approach has significantly reduced the cost of Chery’s locally produced components, effectively refuting the allegation that Malaysia’s automotive supply chain cannot be cost-effective, he said.
“We are proud of Chery’s approach and rapid expansion, as well as steadfast dedication to its investment commitments.
“Its efforts in producing high-quality vehicles align perfectly with our national goals of advancing technology, fostering economic growth and providing Malaysians with more affordable, high-quality car options,” he added.
Chery pledged an investment of RM1 billion last year, which supports the country’s New Industrial Master Plan 2030.
“This commitment under- scores their confidence in the potential of our country’s policies and their dedication to fostering growth and innovation within the automotive sector.
“This significant investment has already started to bear fruit, creating jobs, stimulating economic activity and enhancing Malaysia’s position as a hub for automotive excellence,” Tengku Zafrul added.
Pictures
