Tan Chong Motor Unit and Saike Explore EV Battery Production in Malaysia

Tan Chong Motor Holdings Bhd and China-based Saike REPT Power Battery System Co Ltd have signed a memorandum of understanding (MOU) to explore electric vehicle (EV) battery pack production in Malaysia, aiming to enhance the EV supply chain and meet local content requirements.

MOU Covers One-Year Study of EV Battery Manufacturing

The MOU, effective from 17 September, involves Tan Chong Motor’s indirect wholly owned subsidiary, TQ Manufacturing Sdn Bhd, and Saike. The agreement lasts for one year and focuses on assessing opportunities in producing battery packs and key components for electric vehicles within Malaysia.

Tan Chong Motor said the cooperation also targets evaluation of battery lifecycle management initiatives and potential export markets for the EV batteries. The group noted that no shareholder or regulatory approvals are required for this agreement.

Saike’s Role in Battery Pack Production and EV Assembly

Saike is a joint venture between Liuzhou Saike Technology Development Co Ltd and REPT Battero Energy Co Ltd, manufacturing battery packs for electric vehicles. The firm supplies battery packs for the TQ Wuling brand, which is assembled by TQ Manufacturing in Malaysia.

Tan Chong Motor’s Automotive Operations and Regional Footprint

Tan Chong Motor is a significant automotive group involved in vehicle assembly, manufacturing, and distribution across Southeast Asia. It is the exclusive distributor for Nissan and Renault passenger and commercial vehicles in Malaysia, with manufacturing facilities extending to Vietnam, Laos, Thailand, and Myanmar.

In addition to vehicle operations, the group provides after-sales services, produces automotive parts, and offers financing solutions within the motor sector.

Financial Results Signal Narrowing Losses Amid Revenue Decline

For the second quarter ended 30 June 2026, Tan Chong Motor reported a net loss of RM21.6 million, improving from a net loss of RM58.1 million in the same period a year earlier. This was attributed primarily to a one-off gain from asset disposal, lower operating costs, and foreign exchange gains.

However, revenue dropped by 12.42% to RM471.9 million from RM538.8 million. On the same day as the announcement, Tan Chong Motor’s share price remained stable at 45.5 sen, placing the group’s market capitalisation at RM305.8 million.

Implications for Malaysian EV Industry and Supply Chain

The collaboration could strengthen Malaysia’s position in the regional EV supply chain by developing local battery manufacturing capabilities, which is critical for supporting automotive assembly and export potential.

Establishing a manufacturing and battery lifecycle framework within Malaysia aligns with industry efforts to meet localisation mandates and reduces dependencies on imported components. This may enhance supply chain resilience and create technical jobs in battery production and management.

Outlook: Monitoring Progress and Market Development

Moving forward, Tan Chong Motor and Saike are expected to evaluate the technical and commercial viability of local EV battery pack production. Industry observers will watch for updates on the scale of production, associated investments, and how this initiative integrates with Malaysia’s broader EV ecosystem and export strategies.