EPMB, BAIC Inks MoU To Assemble SUVs In Malaysia

EP Manufacturing Bhd (EPMB) has signed an agreement with China's BAIC International Development Co Ltd (BAIC) to work on the local production of its sports utility vehicles (SUVs), the BJ40P and X55II, according to The Star.

The companies will also collaborate on future right-hand drive (RHD) internal combustion engine (ICE) vehicles and electric vehicles (EVs), with BAIC-branded RHD EVs catering to Malaysian and other RHD markets in the region.

BAIC Motor Corp Ltd is a wholly-owned subsidiary of Beijing Automotive Group Co Ltd, one of China's largest carmakers and a Fortune Global 500 company.

EPMB stated in a filing with Bursa Malaysia today that it will be responsible for the local assembly of the aforementioned SUVs, as well as the RHD ICE and EV products in the country.

The company will also be in charge of localising the production of parts for the SUVs and, later, RHD EV products in Malaysia.

“This is with intention to gradually increase the proportion of localised parts to obtain policy support from the Malaysian government, and to take advantage of the Asean free trade agreement to realise Asean regionalisation coverage,” EPMB said.

“Additionally, this collaboration is also in line with EPMB’s EV venture and carbon credit ambitions,” it added.

The MoU will enable the partners to capitalise on each other's strengths and expertise, potentially creating an additional revenue stream for EPMB while also positively contributing to the group's future growth.