Chery Malaysia - RM1 Billion Investment Transforms Malaysia's Automotive Industry

Last year, Chery Auto Malaysia made a bold commitment to invest RM1 billion in the Malaysian automotive industry. Now, almost a year after launching their operations, Chery's rapid progress has been nothing short of extraordinary.

The automaker has swiftly managed its strategic investments and localisation efforts. Earlier today, Chery Malaysia inaugurated their own assembly plant in Shah Alam, Selangor, dedicated to assembling the Jaecoo range of vehicles, starting with the Jaecoo J7.

This significant event was graced by Tengku Datuk Seri Zafrul Abdul Aziz, Minister of Investment, Trade, and Industry (MITI), His Excellency Jin Zhuanglong, Minister of Industry and Information Technology (MIIT) of the People's Republic of China, and other key dignitaries.

The Shah Alam plant symbolises more than just physical expansion; it represents Chery's commitment to producing technologically advanced and affordable vehicles in Malaysia. While the Shah Alam facility will focus on the Jaecoo brand, the Kulim facility will continue assembling the Chery lineup of vehicles.

Tengku Zafrul noted that Chery’s localisation efforts have significantly reduced the cost of locally produced components. This statement, however, somewhat contradicts Geely's chairman Li Shufu assertion that Malaysia's automotive supply chain costs are approximately 30% higher than in China and over 10% higher than in Thailand.

On top of that, Zafrul also commended the speed at which Chery Malaysia established its CKD (Completely Knocked Down) operations for the Omoda 5, Tiggo 8 Pro, and now the Jaecoo J7. In just one year, this outfit has rolled out 10,000 units of locally assembled vehicles at Inokom’s Kulim plant.

Additionally he added that Chery's investment is already yielding significant benefits for Malaysia. The establishment of the assembly plant and the integration of local vendors into their supply chain have created numerous job opportunities, spurred economic activity, and enhanced Malaysia's reputation as an automotive excellence hub in the ASEAN region.