KUALA LUMPUR (May 14): MCE Holdings Bhd’s (KL:MCEHLDG) unit will partner with China’s Cheling Smart Mobility Technology and Wuhu Atech Automotive Electronics to support Chery Malaysia’s local production, focusing on automotive parts, technology transfer, and quality standards, with potential joint investments in tooling or facilities.

MCE designs and manufactures automotive electronics and mechatronics parts. Cheling Smart Mobility Technology specialises in automotive electronics, while Wuhu Atech Automotive Electronics is a supplier of automotive electronics in China.

Chery already has two manufacturing plants in Malaysia. The first, at the Inokom plant, assembles the Chery Tiggo 8 Pro and Chery Omoda 5. The second, in Shah Alam, produces the Jaecoo J7 and Jaecoo J7 plug-in hybrid electric vehicle for local sales and export, with Vietnam being the first Southeast Asian country to receive these models.

The non-binding agreements signed with MCE Holdings’ wholly owned unit Multi-Code Electronics Industries (M) Bhd during Chery Malaysia’s event at Malaysian Investment Development Authority’s (Mida) headquarters include plans to develop local talent and possibly invest in production facilities.

“These MOUs reflect MCE (Holdings)’s strong track record in design and manufacturing, and our commitment to supporting automakers in their localisation journey. With deep local insights and proven capabilities, we are well placed to help global players establish and grow their presence in Malaysia, while contributing to a more resilient and competitive supply chain,” MCE Holdings group managing director Dr Goh Kar Chun said in a statement.

MCE Holdings’s share price was unchanged at RM1.44 a share earlier on Wednesday, giving it a market capitalisation of RM201.43 million. Year-to-date the stock is down 10%.