Perodua Reportedly Eyes RM500m Tan Chong Rawang Plant

Nanyang Business Daily reported that Perodua is considering to acquire Tan Chong Motor Holdings’ vehicle assembly plant in Rawang for an estimated RM500 million, following the recent launch of two new models.

The report follows a recent development in which Tan Chong Motor Assemblies Sdn Bhd (TCMA) signed a letter of intent with Perodua to provide electro-deposition coating, painting and partial final assembly line services for Perodua’s first electric vehicle, the QV-E.

Citing a senior industry source, The Edge reported Perodua is currently leasing production capacity at the Rawang plant, utilising around 30,000 units annually. The facility has an estimated annual capacity of 40,000 units, and Perodua is understood to be assessing the feasibility of acquiring the plant outright.

The source adds that the capacity leasing arrangement could generate approximately RM80 million in revenue for Tan Chong. The plant is located about three kilometres from Perodua’s existing Rawang facility, roughly a 10-minute drive north of Bandar Baru Selayang.

Both facilities are situated within the Sungai Choh industrial area, between Rawang and Bukit Beruntung.

However, it is understood that a formal capacity leasing agreement has yet to be finalised. The acquisition speculation reflects Perodua’s growing need for additional production capacity to meet rising demand.

This follows Perodua’s recent launches of the Traz SUV last week and Malaysia’s first locally developed electric vehicle, the QV-E, on Dec 1. Initial QV-E production is set at 500 units per month, with plans to gradually scale up to more than 3,000 units monthly.

Perodua’s existing plants are already operating at full capacity of about 320,000 units per year. The company expects sales to reach 359,000 vehicles this year, further intensifying capacity constraints.

As a result, Perodua has been exploring external production options to support demand for high-volume models such as the Bezza and Myvi, with the Bezza alone recording annual sales of around 100,000 units.

Meanwhile, on the flip side, Tan Chong Group has been grappling with weak sales, resulting in underutilised capacity at its Rawang and Segambut plants. Analysts estimate the group’s total annual production capacity at about 65,000 units.

Tan Chong Group, which assembles and distributes Nissan vehicles in Malaysia, Myanmar, Laos and Cambodia, advised the media to refer to its public disclosures for accurate and comprehensive details on any potential collaboration.

Perodua, for its part, declined to comment on the market speculation.