Chery Invests RM250 Million to Build Plant in Malaysia image

Chery Automobile plans to invest RM250 million in the following 5 years to build an assembly plant, especially for exports to the region.

“We have identified where (the plant will be located) and our partners. We still need approval from the government, ” said Chery Holdings (Malaysia) Sdn Bhd CEO Paul Ng.

Last Friday, June 22nd, when Chery launched its 3S (sales, service and spare parts) showroom in Malaysia, Paul Ng said that the plant is expected to begin production in 2014 with a capacity of 10,000 units built annually for the first 5 years. After the company expands its overseas markets, the plant’s production could be increased to 20,000 units. But first, Chery will focus on the domestic market, since exports are still low in countries such as Thailand, India, Sri Lanka and Indonesia.

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

In 2011 Chery sold 3,000 units in Malaysia and hopes to maintain or even surpass this number by the end of 2012. Currently Chery offers 6 models, but plans to introduce other 3 in 2013, a sedan, hatchback and sport utility vehicle.