EP Manufacturing inks deal to venture into EV distribution
17 Aug 2022
EP Manufacturing Bhd (EPMB) has inked a memorandum of understanding (MOU) to collaborate and venture into the business of new and used imported car distribution, in particular electric vehicles (EVs) and its localisation activity.
In a Bursa Malaysia filing on Wednesday (Aug 17), EPMB said its unit EP 4Wheeler Sdn Bhd (EP4W) signed the deal with Cahaya Bumi Sdn Bhd.
It said EP4W is mainly involved in automotive and engineering businesses, which include the manufacturing, developing, fabricating, producing, assembling, buying, selling, importing, exporting and distributing of four wheelers and all other types of automobiles.
Meanwhile, Cahaya Bumi is one of the prominent imported used car companies in Johor.
EPMB said Cahaya Bumi has expanded its business to Kuala Lumpur in 2003 selling luxurious imported brand line-up such as Ferrari, Lamborghini, Rolls Royce etc., with a showroom located in Muar that is able to accommodate up to 40 cars as well as a showroom in Kuala Lumpur that is able to accommodate up to 50 cars.
On the rationale for the deal, EPMB said the MOU is intended to enable EP4W and Cahaya Bumi to obtain the local exclusive distribution agent or franchise holder for the country and assembly of EVs from a reputable EV manufacturer in the form of completely built-up (CBU) and completely knocked down (CKD) units, and to establish a production and localisation plan to assemble the EVs in Malaysia.
“There will be a redefinition of the present EV market in Malaysia, and help in the innovation and the establishment of EV industry in Malaysia by bringing in the technology know-how of EVs,” it said.
At the midday break, EPMB fell 3.7% or four sen to RM1.04 with 2.94 million shares done.
Source: The Edge Markets