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Chery to build a factory in Malaysia

Published on May 31, 2013 by Joey Wang

Chery to build a factory in Malaysia

Chery Automobile plans to set up a jointly owned factory in Malaysia in 2014 to tap into the ASEAN market, 21st Century Business Herald reported on Wednesday. The factory, which will fully assemble vehicles, has long been part of the automobile maker’s plans since its first foray into Malaysia in 2008.

However, Malaysia prohibits import of cars with less than 1.8-litre displacement to protect its own suppliers, Proton and Perodua.

Most of Chery’s products have displacement smaller than 1.8-litre. If the import ban continues, the company’s core products will be unable to enter Malaysia even after the factory is completed. In this case, Chery will have to postpone construction.

“We will build the factory whenever the prohibition is lifted,” said Huang Jingping, CEO of Chery’s Malaysian branch. But he believed that the restriction on displacement would not last too long under pressure from the European Union, representing European automakers.

Via: ChinaDaily.

2 comments

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  1. revohead- May 31, 2013 Reply

    hi there,
    actually, Malaysia does permit importation of CBU cars below 1.8L, example:
    Suzuki Alto 1.0L from India
    Toyota Avanza 1.5L from Indonesia
    Toyota Rush 1.5L from Indonesia
    Toyota PriusC 1.5L hybrid from Japan
    Toyota Corolla 1.6L from Thailand
    Honda Insight 1.3L hybrid from Japan
    Daihatsu Gran Max 1.5L from Indonesia
    Mitsubishi Mirage 1.2L from Thailand
    Ford Fiesta 1.4L & 1.6L from Thailand

    and many other models.

    Previously Geely wanted to invest in Malaysia to built sedans but the requirement was to have their 80% of their output exported, while only 20% were allowed to be sold in the local market because their models are under the minimum stipulated engine capacity. So in the end, Geely decided to invest in Indonesia after knowing that this regulation or terms are unfavourable to them.

    I wonder if these regulations are only for carmakers from China because the price of these cars are so low that it would ‘endanger’ the local champion, Proton. FYI, Perodua is not a govt. protected carmaker as the manufacturing plant is 51% under Daihatsu & another Japanese partner’s control.

  2. dragin- May 31, 2013 Reply

    Looks like a Chery Eastar that we haven’t seen before, i.e. w/Audiesque grille bib. Is it for export to Malaysia only?

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