Chery investing 250m ringgit in Malaysian assembly plant

The Sun Daily - (Petaling Jaya, Malaysia) - Chery Automobile (Malaysia) Sdn Bhd will invest RM250 million over five years to set up an assembly plant, which will become its right-hand drive automotive hub for exports to the region, said Chery Holdings (Malaysia) Sdn Bhd CEO Paul Ng.

"We have identified where (the plant will be located) and our partners. We still need approval from the government," he said, adding that the plant is expected to begin operations by 2014.

Speaking to reporters at the launch of its 3S (sales, service and spare parts) showroom here last Friday, Ng said the Malaysian plant will have a capacity to assemble 10,000 cars annually for the first five years, with an option to expand to 20,000 units once it has expanded its overseas markets.

Chery will focus on the domestic market first, as its exports are currently in small volumes to countries such as Indonesia, India, Thailand and Sri Lanka.

"We are aiming for 15% (of total sales) from exports this year. Right now, they account for 10%," Ng said.

Last year, the Chinese carmaker sold a total of 3,000 units here and hopes to maintain the trend this year. It currently offers six models and will introduce another three next year, comprising a sedan, hatchback and sport utility vehicle (SUV).

"Our current share of the local market is about 0.3%. With the opening of this showroom, we hope to bring more models into Malaysia to give confidence to the market," said Ng.

Chery's flagship model, Chery Eastar, has sold over 9,000 units since its launch in 2008.

Last Friday, a new variant called Chery Eastar ST was launched, of which the carmaker hopes to sell between 1,000 and 1,500 units during the second half of this year.