KUALA LUMPUR (Sept 17): Tan Chong Motor Holdings Bhd (KL:TCHONG) and China‑based Saike REPT Power Battery System Co Ltd (Saike) have agreed to explore the production of electric vehicle (EV) battery packs and identified components in Malaysia.

The memorandum of understanding between Tan Chong Motor’s indirect wholly-owned subsidiary TQ Manufacturing Sdn Bhd and Saike takes effect from Sept 17 for one year.

Tan Chong Motor said the collaboration aims to strengthen the electric vehicle supply chain, evaluate opportunities in battery lifecycle management and potential exports, and support compliance with localisation requirements, according to a bourse filing on Thursday.

The group said the agreement does not require approval from its shareholders or any relevant authority.

Saike is a joint venture between with Liuzhou Saike Technology Development Co Ltd and REPT Battero Energy Co Ltd. The company makes battery packs for electric vehicles and is the official supplier for the EVs brand called TQ Wuling, which are assembled by TQ Manufacturing in Malaysia.

Tan Chong Motor is a major automotive group involved in vehicle assembly, manufacturing and distribution. It is the sole distributor of Nissan and Renault passenger and commercial vehicles in Malaysia, and has manufacturing operations in Vietnam, Laos, Thailand and Myanmar. 

It also provides after-sales services, makes auto parts and offers motor-related financial services.

For the second quarter ended June 30, 2026, Tan Chong Motor’s net loss narrowed to RM21.6 million from RM58.1 million a year earlier, mainly due to a one-off gain from asset disposal, lower operating costs and foreign exchange gains.

However, revenue fell 12.42% to RM471.9 million from RM538.8 million.

Tan Chong Motor’s shares were unchanged at 45.5 sen on Thursday, valuing the group at RM305.8 million.