NexV Inks MoU To CKD DongFeng EV & Sykwell Electric Bus, 5 Local Vendors Appointed

Following the groundbreaking ceremony of their NEV manufacturing plant earlier this year, NexV Manufacturing Sdn Bhd has signed two major memorandums today with various automotive stakeholders to advance their efforts in locally manufacturing and assembling electric vehicles (EVs).

The signing ceremony took place at the Malaysia Automotive, Robotics, and IoT Institute (MARii) headquarters in Cyberjaya. Amongst those in attendance were Faizal Mohd Yusof, Senior Director of the Industry Development Division at the Ministry of Investment, Trade, and Industry (MITI), as well as other notable industry leaders.

Firstly, a Memorandum of Agreement (MoA) was inked between NexV Manufacturing and five appointed Tier Zero (T0) vendors. T0 vendors operate under a "Factory within Factory'' concept, where each vendor responsible for a specific component or system sets up its own operations, manpower, and management system within the larger manufacturing ecosystem.

The T0 vendors involved were:

• PHN Industry Sdn Bhd
• Hicom Teck See Manufacturing Malaysia Sdn Bhd
• Noble Star Parts Sdn Bhd
• Evan Karl Holdings Sdn Bhd
• KNR Biz Solution Sdn Bhd

Secondly, Memorandums of Understanding (MoUs) between NexV Manufacturing and two distributors were signed. These centred on plans to assemble EVs from brands like Dongfeng NEV and Skywell, the latter renowned for building  electric buses.

These MoUs involve:

• Central Auto Distributors Bhd (Dongfeng NEV) - PEKEMA’s subsidiary
• Wise Star Assets Sdn Bhd (Electric Bus)

Dato’ SM Azli, Chairman of NexV Manufacturing Sdn Bhd, emphasised the impact of these agreements on Malaysia's NEV landscape by stating, "Today's event will pave the way for comprehensive collaboration in various areas including research and development, supply chain integration, talent development, and infrastructure enhancement.”

He also expressed his excitement about the potential of these collaborations, saying, "Our success in the NEV sector is deeply intertwined with our collaboration with Tier Zero (T0) vendors. These vendors provide critical components and technologies that are the backbone of our NEV products.”

Additionally, NexV is dedicated to empowering Bumiputera entrepreneurs and businesses by integrating them into its supply chain while extending know-how on NEV product technology and manufacturing methodology through direct technology transfer.

Furthermore, NexV Manufacturing's commitment to sustainability aligns seamlessly with Malaysia’s green initiatives. Supported by government tax incentives, the company’s efforts aim to promote eco-friendly technologies and reduce carbon footprints.

The new manufacturing and assembly plant, located in the Chembong Industrial Area, Rembau, Negeri Sembilan, measures 73.34 acres and will have an initial production capacity of 30,000 units per year, with potential scalability up to 50,000 units annually.

In addition to fostering industrial growth, NexV Manufacturing is committed to workforce development through its partnership with Institut Kemahiran Tinggi Negara (IKTBN) Chembong, focusing on R&D and talent development towards a high-growth, high-value (HGHV) skills and knowledge workforce.