Warisan TC invests RM60 mln in CKD project with China's GAC - MIDA | Malaysian Investment Development Authority
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Warisan TC invests RM60 mln in CKD project with China’s GAC

Warisan TC invests RM60 mln in CKD project with China’s GAC

11 May 2023

Warisan TC Holdings Bhd’s wholly-owned subsidiary, WTC Automotif (M) Sdn Bhd (WTCA) has announced a collaboration with Guangzhou Automobile Group (GAC) to develop and distribute completely knocked-down (CKD) vehicles in Malaysia.

In a statement today, GAC said the CKD project, in which WTCA will invest in excess of RM60 million, involves the manufacturing of GAC Motor’s new GS3 model and expanding its nationwide presence.

The new CKD GAC Motor GS3 model will have a third-generation 1.5 turbo direct injection engine, 7-speed WDCT transmission, and a segment-leading torque of 270Nm @1400~4500rpm,” it said.

This is the first CKD project for GAC in Asean and it was announced approximately 18 months after WTCA and GAC International signed a distributorship agreement, appointing WTCA as the sole and exclusive distributor of GAC vehicles in Malaysia.

Part of this RM60 million investment will be used for model-specific investments such as tools, and facility upgrades in Tan Chong’s Segambut facility to meet the new CKD model local assembly and GAC standards requirement, it said.

Warisan TC CEO Tan Keng Meng said the company is confident of meeting GAC’s high expectations given its years of experience and armed with an investment of more than RM60 million in its facility.

“GAC has set a high standard in the automotive industry as they have dominated China’s JD Power initial quality survey for eight consecutive years,” he said at the official collaborative initiation of the CKD programme in Petaling Jaya today.

Meanwhile, GAC Group vice-president and GAC International chairman Yu Jun said the company will be expecting that with three to five years of development, production and sales will reach 50,000 units in Malaysia.

“To achieve this target, GAC will continue to coordinate resources and increase support for the Malaysian market, accelerate the launch of key models, and provide more intelligent and higher-quality vehicle products for local consumers,” he added.

WTCA plans to establish more than 70 showrooms via their own branch setup and dealership appointment nationwide.

The first GAC Motor Malaysia flagship showroom will be based in Section 13, Petaling Jaya, which is expected to be ready in the third quarter of 2023.

Over the next five years, WTCA plans to introduce a comprehensive inventory of right-hand drive GAC Motor models, including SUV, multi-purpose vehicles (MPV) and sedans.

“All new global GAC Motor models will be simultaneously developed for both right- and left-hand drives, ensuring that Malaysian consumers receive the latest models at the same rate as other global consumers,” said the statement.

Source: Bernama