Tan Chong Motor Holdings Berhad (TCMH) just announced that it is looking into the possibility of assembling and selling China’s GAC vehicles in Malaysia and Vietnam. If this cooperation goes forward, the local automotive industry will see the entry of another established brand.
TCMH’s wholly-owned subsidiary, TC Overseas Assets Holdings Labuan (TCOAHL), entered into a Memorandum of Understanding (MoU) with GAC Motor International Limited (GAC International) just today to “study on the potential and feasibility of the business opportunity.” That is, to introduce GAC vehicles in Malaysia and Vietnam.
On top of that, the MoU also states that the sales, distribution, assembly, and provision of aftersales services for GAC models in the said countries (Malaysia and Vietnam) will be appointed exclusively to TCMH, or any company under it. Having GAC vehicles locally assembled here in Malaysia will be a great thing, given that the lower taxation – compared to full imported (CBU) models – will allow TCMH to offer these GAC vehicles at a more competitive price point.
Of course, given that this is only an MoU at this point in time, it’s not confirmed yet if Tan Chong Motor will in fact sell GAC models here in Malaysia and Vietnam. The MoU will be valid until 1 July 2021, unless revised by mutual agreement in writing.