KUALA LUMPUR (May 5): Tan Chong Motor Holdings Bhd (KL:TCHONG) is set to introduce the Chinese automotive marque Wuling to the Malaysian market under the brand name TQ Wuling, marking the group's latest foray into the electric vehicle (EV) segment.

In partnership with Chinese automaker SAIC-GM-Wuling Automobile Co Ltd (SGM Wuling), Tan Chong on Monday signed an investment commitment agreement (ICA) to begin semi knocked-down (SKD) assembly of Wuling models in Malaysia.

The first model will be launched in the fourth quarter of 2025, namely the compact EV hatchback TQ Wuling Bingo, Tan Chong group chief executive officer Daniel Ho Wai Ming said. 

Tan Chong has secured an exemption from the Ministry of Investment, Trade and Industry to undertake SKD assembly, a production category that was scrapped in 2019 to eliminate grey lines between completely built-up (CBU) or imported vehicles and completely knocked-down (CKD) or locally assembled units that are taxed less.

The SKD category allows Tan Chong to price vehicles below RM100,000, which is not permitted for fully imported EVs, partly to protect local vehicle brands.

“We believe the TQ Wuling Bingo can offer a competitive and affordable EV solution to Malaysian consumers,” Ho said. 

Assembly operations will take place at Tan Chong’s Segambut plant in Kuala Lumpur. Future TQ Wuling models are already in the pipeline, and the group sees potential for regional exports under the partnership, Ho added.

The Bingo model is currently available in China, Indonesia, and Thailand. Tan Chong operates an assembly plant in Vietnam producing TQ Wuling-branded light commercial pickup trucks there. The group, which sells more than half a dozen vehicle brands, also has a footprint in Laos, Cambodia and Myanmar, where it is the sole distributor of the Japanese brand Nissan.

“This expansion underscores our long-term goals of contributing to the growth of the Malaysian automotive sector through local assembly and strategic distribution," Ho said.

"We are committed to strengthening our localisation efforts by incorporating a greater proportion of locally sourced components into our production processes,” he said.

The SKD technical partnership grants Tan Chong the exclusive right to assemble Wuling-authorised vehicle models in Malaysia using SKD kits built to global quality standards.

Transport Minister Anthony Loke Siew Fook, who attended the signing ceremony, said the move is a positive step towards Malaysia’s sustainability agenda, and highlights the private sector’s increasing confidence in the country as a destination for high-value, technology-driven investments.

“The ICA signifies the firm commitment by SGM Wuling to investing in Malaysia, bringing with it numerous economic benefits, including job creation, technology transfer, and the development of local supply chains,” Loke said.

He added that the collaboration reflects Malaysia’s appeal as a regional hub for green mobility, and underscores the importance of public-private partnerships in advancing innovation and sustainable development.

SGM Wuling, established in 2002, is a joint venture between SAIC Motor Corporation, General Motors, and Liuzhou Wuling Motors Co Ltd.

The entry of Wuling into Malaysia through Tan Chong marks another Chinese EV maker entering the market in recent years, including BYD, Great Wall Motors, Denza, Chery, Neta, Aion, Dongfeng, JAC, Leapmotor, Zeekr, and Xpeng. 

At Monday's market close, shares of Tan Chong ended up half a sen or 0.88% at 57 sen, giving the group a market capitalisation of RM383 million.