Chery OMODA E5 now assembled locally

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When Chery Auto Malaysia started up in July 2023, it made a commitment to contribute to Malaysia’s industrial growth, as well as help the country to make the transition to electrification of transportation. It has made investments to assemble its vehicles locally at two plants (one of which is its own, located in Selangor) and with regards to electrification, it introduced the OMODA E5.

The first units of the fully electric SUV have now been completed and volume production is underway at the Inokom plant in Kedah where the TIGGO PRO and OMODA 5 are also assembled.

“The roll-off of Chery’s first locally-assembled OMODA E5 is a testament to our dedication to innovation, quality, and our commitment to the Malaysian market. By assembling our cars locally, it not only allows us to provide more competitive pricing but also signifies Chery’s long-term commitment in Malaysia, fostering job creation and skill development within the local workforce,” said Leo Chen, President of Chery Auto Malaysia.

Mr. Chen added that the initiative is in line with the government’s policy of localisation compliance and the automaker will support and assist Malaysia to become a regional hub for electric vehicles.

Speaking on behalf of Sime Darby Berhad, which owns the plant, Dato’ Jeffri Salim Davidson, Group Chief Executive Officer, said: “Our expertise spans the entire automotive value chain, and assembly is a crucial area of growth and a key enabler for our Motors division. We look forward to achieving many more milestones together as we expand our facility and reaffirm our commitment to advancing sustainable mobility solutions.”

The OMODA E5, which was launched in March this year, is part of the Chery range for the Malaysian market which includes the OMODA 5, TIGGO 7 PRO and TIGGO 8 PRO. The OMODA E5 has a 61 kWh battery which provides a range claimed to be up to 430 kms. With high-speed DC charging, it should take around 28 minutes from 30% to 80%.

The locally-assembled model is priced from RM146,800, similar to the price of the imported units sold earlier. At this time, all fully electric vehicles can be imported and sold duty-free as part of the government incentive to get Malaysians to switch to EVs. However, after the end of 2025, this incentive will end but the OMODA E5 will continue to enjoy incentives for EVs which will help moderate their prices.

For locally-assembled EV models, there will be excise duty and sales tax exemption until December 31, 2027, and components for the locally assembled EVs will be exempted from import duty up till December 31, 2027. In total, the government’s EV incentive program will span 6 years.

EV owners have also been enjoying ongoing incentives such as roadtax exemption (until the end of 2025); after that, they will be subject to lower roadtax rates that will be based on the vehicle’s output. They can also get RM2,500 in annual income tax relief until 2027 for purchase and installation or rental of EV charging equipment or subscription fees.

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