Chinese Auto Companies Look to Tie Up with Malaysian Players image

Several Chinese auto companies expressed their interest to tie up with Malaysian players in order to fast track their presence into Malaysia.

The Malaysia Government now focuses on the energy efficient vehicles (EEVs) sector, planning to turn the country into an EEV hub. The revised National Automotive Policy will also liberalize the below 1,800cc segment in order to make it more attractive for new companies.

“There are a number of players from China that are keen to tie up with Malaysian car companies. But not all can adhere to the Government’s EEV standards,” said a source familiar with the matter.

The 1,800cc segment makes up for 90% of the total passenger vehicle market, being the largest vehicle sub-segment in Malaysia. Only several Chinese auto companies operate in Malaysia, including Chery and Dong Feng. In 2011 Chery sold around 3,000 units in this country, while Dong Feng sold only 19 units. The models offered by Chery in Malaysia are: Eastar, Tiggo and A5, while Dong Feng offers heavy commercial and industrial vehicles.

“It does not matter if the potential player specializes in petrol or diesel. We have several interested Chinese parties but they are not up to the Government’s EEV standards,” the source said.