EP Manufacturing signs MOU to produce China’s BAIC vehicles in Malaysia
01 Aug 2023
EP Manufacturing Bhd (EPMB) has partnered with China-based automobile group BAIC Motor Corporation Ltd to develop local production of BAIC branded vehicles in Malaysia.
EPMB said it has signed a memorandum of understanding (MOU) with BAIC’s unit, BAIC International Development Co Ltd, to develop the BJ40P and X55II sport utility vehicles and right hand drive (RHD) electric vehicles to cater to Malaysia and other Southeast Asian RHD markets.
BAIC is part of Beijing Automotive Group Co Ltd, a Fortune Global 500 company and one of China’s largest carmakers.
“BAIC has the intention and plan to establish the brand image of BAIC, sell the RHD products, establish sales and after-sales service system, and develop in the direction of local assembly and production in Malaysia,” EPMB said in a filing to Bursa Malaysia.
The company said it will be responsible for the localised production of parts of BAIC’s BJ40P, X55II and subsequent EV RHD products in Malaysia, with the intention to gradually increase the proportion of localised parts.
This increase in parts is to obtain policy support from the Malaysian government, and to take advantage of the Asean Free Trade Agreement to realise Asean regionalisation coverage.
“This will potentially create an additional revenue stream for EPMB group and contribute positively to the future growth of EPMB group. This collaboration is also in line with EPMB’s electric vehicle venture and carbon credit ambitions,” EPMB said.
EPMB shares closed down 1.5 sen or 1.60% to 92.5 sen on Tuesday (Aug 1), valuing the company at RM203.76 million.
Source: The Edge Malaysia