KUALA LUMPUR (Nov 14): Tan Chong Motor Holdings Bhd (KL:TCHONG) has signed a letter of intent (LOI) with Perusahaan Otomobil Kedua Sdn Bhd (Perodua) to rent out some of its assembly lines for the national carmaker’s upcoming electric vehicle (EV) project.
In a bourse filing on Friday, the group said the LOI was signed by its 70%-owned subsidiary Tan Chong Motor Assemblies Sdn Bhd and Perodua’s wholly-owned subsidiary Perodua Sales Sdn Bhd.
Tan Chong Motor Assemblies will be responsible for providing ED (electro deposition) coating, which is used to prevent corrosion for EV parts, and painting line services, as well as rental and use of designated assembly lines to Perodua.
Tan Chong Motor, which is the franchise holder and exclusive distributor of Nissan and Renault vehicles in Malaysia, said the arrangement is an “opportunity to expand TCMH’s participation in the electric vehicle segment of Malaysia’s automotive industry”.
The LOI, which came into effect on Nov 13, will lapse once both parties sign the definitive agreements, said Tan Chong Motor.
Perodua's first EV is anticipated to be launched at the end of this month, as announced by Prime Minister Datuk Seri Anwar Ibrahim earlier this week.
Shares of Tan Chong Motor closed down two sen or 2.8% to 69.5 sen on Friday, valuing the group at RM467 million.