CEO Morning Brief

Warisan TC’s Unit Partners GAC Motor in RM60m CKD Project in Malaysia

Publish date: Thu, 18 May 2023, 09:05 AM
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TheEdge CEO Morning Brief
Warisan TC’s unit partners GAC Motor in RM60m CKD project in Malaysia

KUALA LUMPUR (May 17): A unit of Warisan TC Holdings Bhd will kickstart the completely knocked down (CKD) project for Guangzhou Automobile Group Co Ltd’s GS3 EMZOOM model with the aim to roll off production lines for the locally assembled vehicle in April 2024.

The project is a partnership between the China automotive company, more commonly known as GAC MOTOR, and Warisan TC’s wholly-owned WTC Automotif (M) Sdn Bhd, the sole and exclusive distributor of GAC vehicles in Malaysia.

GAC MOTOR said the project would involve an investment of RM60 million, and is part of both parties’ long-term strategy to expand their presence in the Malaysian foreign brand automotive market, which has long been led by Japanese brands.

The Chinese car maker said it plans to open its first Malaysia flagship store in the third quarter this year, and aims to complete its product matrix of right-hand drive models in the country to meet growing demand from Malaysian consumers.

In December 2021, Malaysia was the first country to launch GS3, the first right-hand drive model from GAC MOTOR.

"We are committed to bringing the best and most competitive products to Malaysians and to establishing GAC MOTOR Malaysia as a prominent player in the automotive industry," said Warisan TC chief executive officer Tan Keng Meng.

Warisan TC’s wholly-owned subsidiary Mayflower Car Rental Sdn Bhd has also placed an order of 50 GS3 from WTC Automotif, half of which have been delivered, in its bid to explore opportunities in car leasing businesses.

"The successful launch of the CKD project will be an important milestone in GAC MOTOR's internationalisation process," said the group’s vice president and GAC International chairman Yu Jun.

"In order to support the achievement of this goal, GAC will also make efforts to coordinate internal and external resources of the group, increase support for the Malaysian market, accelerate the launch of key models, and improve the product line-up", he added.

Shares of Warisan TC closed unchanged at RM1.00 on Wednesday (May 17), giving it a market capitalisation of RM67.2 million.

Source: TheEdge - 18 May 2023

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