Pecca Leather Group jumps into EV parts business in Malaysia; Signs MoU with MARii

Pecca Leather Group, a vehicle leather upholstery manufacturer for cars and aeroplanes, has signed a two-year memorandum of understanding (MoU) with the Malaysian Automotive Robotics and IoT Institute (MARii) for the expansion of products and a collaboration in electric vehicle (EV) parts and components.

According to the MoU, MARii will help Pecca develop new opportunities and expand its capabilities to offer more competitive products to global brands. MARii will also help enhance the leather manufacturer’s operational efficiency by integrating Industry 4.0 system.

In addition to that, both parties have also agreed to explore the development of automotive manufacturing capabilities for an expanded variety of vehicle parts. This will include the localisation of EVs and after-sales support ecosystem.

MARii CEO, Datuk Madani Sahari, believes that the collaboration will contribute towards electrification in Malaysia.

This is in line with the National Automotive Policy 2020 (NAP 2020) that not only envisions a strong pool of automotive component suppliers. It is also in line with the government’s renewed pledge to reach carbon-neutral status by 2050.

Pecca Group Managing Director Datuk Teoh Hwa Cheng said in a statement that the recently tabled EV duty exemption proposal will broaden the market for EVs and EV-specified components in the country.

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As such, Pecca is excited to start a new journey ahead to manufacture new products related to EVs. He also hinted that the company will eventually look into manufacturing EVs and partnering overseas EV brands for localisation.

“Through this MoU, Pecca will be able to transform into a Tier 1 supplier which markets and sells its current and new products to original equipment manufacturers (OEMs) with access to a larger client base. This is expected to contribute positively to the overall future earnings, as well as the earnings per share of the group,” said Teoh.