In November 2023, Chery Malaysia pledged an investment of RM1 billion to support Malaysia’s New Industrial Master Plan 2030, This long-term commitment underscores the automaker’s confidence in Malaysia’s potential, bolstered by the country’s policies and dedication to fostering growth and innovation within the automotive sector.
The investment has seen the establishment of the Chery Corporate Malaysia assembly plant in Shah Alam, Selangor which began operations last year and now assembles three JAECOO models from the Chery Group.
From the outset, it has been Chery’s intention to make Malaysia its production hub for righthand drive models and introduce R&D centres in the country as well. Zhang Guibing, President of Chery International, confirmed the company’s intentions during his visit to Malaysia in July 2024, saying that Malaysia offers a unique opportunity to serve righthand drive markets.
He said that Chery plans to explore exporting vehicles to neighbouring righthand-drive countries, leveraging Malaysia’s strategic location and robust automotive ecosystem.
Now that plan is becoming a reality as Chery is set to export vehicles from Malaysia to other markets in Southeast Asia this year. It will be the first Chinese brand to begin exporting from this country.
“Chery is progressing well towards establishing Malaysia as our production and R&D hub in Southeast Asia. Expanding our exporting capabilities enhances our production capacity to meet the region’s growing demand,” said Chery Corporate Malaysia Executive Vice-President, Leo Chen.
“Furthermore, Chery is excited to play a role in boosting Malaysia’s economy, develop local talent and strengthen our supply chain. We are confident in achieving our goal to make Malaysia the leading export hub for Chery vehicles which includes our premium sub-brand JAECOO,” he added.
![First locally-assembled JAECOO J7 [2024]](https://www.motaauto.com/wp-content/uploads/2024/06/First-locally-assembled-JAECOO-J7-2024-2.jpg)
By using Malaysia as a production base, Chery can enjoy the duty-free benefit under the ASEAN FREE Trade Area (AFTA) agreement. This agreement provides for duty-free import of vehicles made in ASEAN to any member country of the region. It will help Chery to offer its products at more competitive prices than those which are imported from China.
To prepare for increased production for future growth, Chery has also established strategic partnerships with other local assembly plants in Malaysia. At this time, it also has some models assembled at Inokom Corporation in Kulim, Kedah. These include the OMODA E5, a fully electric SUV.