Tan Chong might launch China's Wuling brand in Malaysia and Thailand

Tan Chong Motor Holdings, better known for being the distributor of Nissan vehicles in Malaysia, has made an announcement yesterday to Bursa Malaysia that it its wholly-owned subsidiary TC Manufacturing (Labuan) Pte Ltd (TCMAN(L)) has entered Memorandum of Understanding (MoU) with China’s SAIC GM Wuling Automobile Co. Ltd. (SGMW).

The announcement did not reveal any other information apart from saying “The MoU will provide both parties with opportunities to cooperate with each other and study potential business opportunities to extend the respective Group’s foothold in the automotive industry in the Southeast Asia region with certain SGMW vehicles.”

SGMW is a three-way joint venture between China’s SAIC Motor, Liuzhou Wuling Motor, and America’s GM China. It sells its products in Indonesia under the Wuling brand, managed by its subsidiary PT SGMW Motor Indonesia.

The Wuling brand entered Indonesia in 2017 and within just two years, is now among the top-10 brands in Indonesia.

Wuling currently sells four models in Indonesia, all assembled at the company’s plant in Cikarang, West Java.

The Wuling Almaz is closest competitor to the Proton X70 in this region. It’s a Chinese C-segment SUV that undercuts the Honda CR-V. It lacks the sophistication of the Proton X70 but it counters by offering 7 seats (5-seater is also available) - a crucial a factor for success in Indonesia.

Power comes from a 1.5-litre turbocharged 4-cylinder engine that makes 140 hp and 250 Nm, paired to a CVT-type automatic driving the front wheels.

Its 10.4-inch touch screen, 9-speaker Infinity infotainment system comes with natural language voice command. Instead of 'Hi Proton', it’s ‘Halo Wuling’ and yes it understands Indonesian language.

The Wuling Cortez is a Toyota Innova-class MPV that shares the same powertrain as the Almaz, also a front wheel drive.

Like the Almaz, the Cortez’s selling price undercuts all its Japanese rivals. It fits like an Innova, but is priced like a Toyota Avanza.

Sitting one rung lower is the Wuling Confero. It competes with the Avanza but is priced like a Toyota Calya, which is a Perodua Axia/Toyota Agya-based MPV that we never got (not that something that Malaysian buyers will want).

The Confero is powered by a naturally aspirated 1.5-litre 4-cylinder, paired to either a 5-speed manual or a 6-speed automated manual transmission (clutch-less manual). Like the Avanza, it’s also rear-wheel driven, which is what Indonesian customers in this segment want, for better load carrying ability and traction on rural roads.

Lastly is the Formo, a 1.2-litre light commercial van that’s available either as a panel van or a window van.

Wuling is not the only Chinese brand that's looking to enter Malaysia. Wuling's sister-company the SAIC Motor's MG brand is looking to enter Malaysia via the Berjaya Group.

Previous efforts by Chinese car makers have failed to gain traction here. Geely is the only exception, because of the Proton factor. Great Wall's Haval have been in Malaysia for more than 10 years already, with little results to show. Borgward is another new entrant, but has a negligible market presence.