Chery to begin CKD operations in Malaysia in Q2 2023, no CBU models for customers
CY Foong · Dec 20, 2022 11:35 AM
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Chery is making its Malaysian comeback very soon and it aims to launch its first two models, the Chery Omoda 5 and Chery Tiggo 8 Pro by the middle of 2023. These models will also be locally-assembled (CKD) in Malaysia right from the get-go.
At a dinner event with the media, Vice President of Chery International and President for the ASEAN market, Shawn Xu, did not reveal any further information on where the plant is located nor who the local partners are. He has stated that CKD production is only for the domestic Malaysian markets, for now.
“Normally, to build a new plant would take at least 3 years to set up, but with a partner that has an existing facility, that can be cut short,” Shawn said to the media. “Chery is targeting an annual capacity of 20,000 units for the first phase.”
It is rumoured that Chery's local partner for CKD assembly could be Sime Darby's Inokom. Its plant is located in Kulim, Kedah and currently assembles BMW, MINI, Mazda, Hyundai, Kia, and Porsche vehicles.
Shawn also stated that CKD production is expected to commence in the second quarter (Q2) of 2023. All units that will be delivered to customers will be locally-assembled and not imported from other global factories including Indonesia.
Tiggo 8 Pro PHEV shown, coming to Malaysia in a couple more years
“We didn’t consider CBU imports since the tax is very high,” Shawn informs. “We are trying to see if we can bring in some CBU models to be used as showroom cars or for test drives but this is still unconfirmed.”
Furthermore, Chery also has plans to also assemble its upcoming plug-in hybrid (PHEV) and battery-electric (BEV) models locally by 2024.
Chery has very ambitious plans for its return to the Malaysian market with the country being one of its most important right-hand drive (RHD) markets. Besides an assembly plant, Chery is also looking to set up a research and development (R&D) facility in Malaysia in the future.
Traded advertising for a career that fits his passion for cars. Enjoys spotting cars during his free time and has a soft spot for Japanese Kei cars but drives a thirsty manual sedan.
