Report: Jaguar Land Rover Mulling CKD Operation In Malaysia

According to a recent report by TheEdgeMarkets, it seems Jaguar Land Rover (JLR) is exploring the idea of setting up a local assembly (CKD) operation right here in Malaysia through INOKOM Corp Sdn Bhd (Inokom).

The firm, an indirect subsidiary of Sime Darby Bhd, is reportedly in talks with JLR to assemble select models for sale both here in Malaysia, as well as for exports to other regional markets. Should a CKD operation be green-lit, it will mark a paradigm shift for JLR both in the local and regional market space.

L-R: The I-Pace and the Range Rover L460 were amongst the latest launched locally by JLR Malaysia.

Up to this point, all models sold by both brands through the Jaguar Land Rover Malaysia (JLR Malaysia) joint-venture between Sime Darby Motors and Sisma Auto have been fully imported (CBU) units. The latest were the Range Rover L460 luxury SUV launched last month, and the Jaguar I-Pace electric crossover that debuted this week.

“Sime Darby Motors is a partner of choice for some of the world’s leading brands, giving our customers access to a network of world-class products and services. That being said, we are always on the lookout for new partners, even more so as global economic prospects take a turn for the better,” read Sime Darby’s response to TheEdgeMarkets.

Whilst Sime Darby Bhd neither confirmed nor denied anything, three separate insider sources quoted by the local business portal indicate that the negotiations are already in their final stages. In other words, it’s only a matter of time before we know if JLR will CKD select models in Malaysia through Inokom or not.

According to TheEdgeMarkets, Sime Darby Bhd’s control over Inokom lies in the 51% stake held by its Sime Darby Motors subsidiary. The remaining stakes are held by partnering shareholders Bermaz Auto Berhad (29%), Hyundai Motor Co (15%), and Sime Darby Hyundai Sdn Bhd (5%).

The Porsche Cayenne is the latest high-profile effort inducted into Inokom's CKD operations.

Other brands assembled by Inokom include BMW, MINI, Mazda, as well as both Hyundai and Kia.

In terms of brand products, Inokom presently assembles BMW, MINI, Mazda, as well as both Hyundai and Kia models in its plant located in Kulim, Kedah. Its most recent high-profile addition was famed German sportscar marque Porsche, and it saw Inokom stand as the first outside Europe to assemble the Porsche Cayenne performance SUV.

The same report also indicates that Inokom are in the midst of courting Chinese automaker Chery as its CKD partner. Said Chinese marque is itself in the midst of its own Malaysian market re-entry efforts slated for this year where it plans to launch an all-SUV line-up too.