TAN Chong Motor Holdings Berhad (TCMH) announced that its assembly arm is looking to take on the upstream coating and finishing work while providing designated assembly lines for Perodua’s battery electric vehicle (BEV) programme.
“We are overall positive on the development, as it could help lift plant utilisation, which remains subdued, though it is still preliminary with limited details at this stage,” said MBSB Research.
TCMA has entered a Letter of Intent (LOI) with Perodua Sales Sdn. Bhd. (PSSB), a wholly owned unit of Perusahaan Otomobil Kedua Sdn. Bhd. overseeing Perodua’s manufacturing, marketing, and distribution activities. The LOI outlines the preliminary framework for TCMA to support Perodua’s upcoming BEV project.
Under the LOI, TCMA is expected to provide electrodeposition (ED) coating and painting services, as well as access to selected assembly lines to PSSB as part of Perodua’s BEV initiative, which coincides with Perodua’s planned end-of-month launch of its QV-E EV, a B-segment SUV adopting a battery-as-a-service (leasing) model.
This collaboration positions TCMA as a key supporting partner as Perodua accelerates its entry into the BEV segment.
“In our view, the LOI could enhance TCMA’s operational leverage by helping to fill excess capacity at its assembly operations,” said MBSB.
MBSB believes the work may be routed to the Segambut plant, which has a 20k-unit-per-annum capacity and handles assembly for brands such as Foton and GAC, as the Serendah plant (45k units per annum) is solely dedicated to Nissan.
Management noted utilisation has been below expectations, and with production of the TQ Wuling Bingo reportedly starting at Segambut last month ahead of its tentative year-end launch, this project could further support plant utilisation. —Nov 17, 2025
Main image: Nissan Malaysia
