China’s car maker, Chery Automobile Co Ltd, is looking to invest more than RM50 million in equipment at its new completely knocked down (CKD) plant to be built in Pekan, Pahang.
Chery Alado Holdings Sdn Bhd chairman Tan Sri Cam Soh Thiam Hong said the plant, expected to be operational by end of 2009, will produce up to 100,000 units of Chery vehicles a year from 10 models including hybrids, sports utility vehicles, multi-purpose vehicles and executive cars.
Chery Alado is a 50:50 joint venture between Alado Corp Sdn Bhd and Chery Automobile Co Ltd. Before this, Alado has set up a plant in Johor Baharu with Oriental Assemblers Sdn Bhd to assemble CKD Chery cars.
Cam however did not disclose the total investment for the new plant but said he will announce it with the joint-venture partners which may include a government-link company in the next two months.
Cam said Pekan was the ideal location to set up the plant given its proximity with Chery’s shipyard from China which would hasten bringing in of the auto parts.
He was speaking to reporters after the launch of the Chery Eastar MPV by Deputy Prime Minister Datuk Seri Najib Tun Razak.
The Eastar MPV, priced between RM79,888 and RM86,888, is locally assembled at the Johor Baharu plant.
“We expect to export up to 30 percent of the Eastar to Indonesia, Thailand, Singapore and Australia. For the local market, we target to sell around 120-200 units a month,” he said.
He however said it would be difficult to meet the local target as people tend to go for fuel-efficient smaller cars.
Cam urged the government to provide more incentives to foreign auto firms to woo them to Malaysia and also lower spare parts cost.-BERNAMA