GAC Motor International and WTC Automotif Looking Into More CKD Vehicle Assembly Projects in Malaysia
WTC Automotif (M) Sdn Bhd (WTCA) and GAC Motor International Co., Ltd have signed a Memorandum of Understanding to further their relationship. Through this MoU, both parties will start feasibility studies for 2 new completely knocked down (CKD) vehicle assembly projects in Malaysia.
The MoU is a significant milestone and facilitates the study of CKD production in Malaysia of the right-hand-drive GAC Emkoo for the Malaysian market, as well as the left-hand-drive GAC GS3 Emzoom for the Vietnam market. WTCA is a subsidiary of Warisan TC Holdings Bhd which is part of the Tan Chong Group. Tan Chong also has presence in the automotive market in Vietnam where the group will also be distributing and retailing the GAC brand.
If realised, this collaboration will solidify Malaysia and WTCA’s pivotal role as a strategic partner for GAC’s regional growth strategy through localised CKD production and manufacturing opportunities. As GAC’s strategic partner, WTCA will leverage its automotive experience, capability, and Malaysia’s industrial ecosystem with GAC Motor International to deliver GAC mobility solutions for the ASEAN markets.
“It will be a strong testament to the depth of our partnership and our collective commitment to provide cutting-edge mobility solutions, integrating sustainable manufacturing practices, creating economic opportunities, and ultimately providing customers across ASEAN with the freedom to go further,” said Warisan TC Holdings Bhd Chief Executive Officer, Tan Keng Meng. He added that the partnership and technical collaboration with GAC Motor International underscores a shared vision to scale up CKD capabilities in Malaysia.
The feasibility studies are expected to be completed by the end of July. Upon completion, it will pave the way for the formalisation of definitive agreements and strengthen Malaysia’s position as the automotive hub for Southeast Asia markets. Moreover, the exportation of the GAC GS3 Emzoom to Vietnam will be crucial to WTCA’s expansion plans in the region. 
Complementing their regional expansion strategy, GAC and WTCA also formalised their technical collaboration through the CKD Technical Collaboration Agreement. This agreement grants WTCA the rights to locally assemble GAC vehicles using CKD kits and components manufactured to GAC’s stringent global technical specifications and quality standards. Additionally, WTCA, through its Distribution Agreement, is given the rights to marketing, distributing, and servicing these vehicles.
This collaboration with WTCA is a milestone for GAC as it is its first CKD project in an overseas market and marks a significant step towards the brand’s global expansion. The CKD Technical Collaboration Agreement will not only establish the groundwork for future collaboration in CKD assembly between GAC and WTCA but also highlights their shared determination to forge a strong technical partnership and deliver top-quality vehicles to customers.
The technical partnership between GAC and WTCA will first see the CKD Start of Production (SOP) for the GAC GS3 Emzoom compact SUV at WTCA’s Segambut plant. The GS3 Emzoom had been previewed earlier and is open for booking. Its official launch is expected in April 2024. 
This local assembly programme of the GS3 Emzoom was realised in just 13 months, following the project announcement; a notable achievement compared to the industry average. “Our team at WTCA is immensely proud of the seamless collaboration with our esteemed GAC partners in executing an accelerated SOP for the GAC GS3 Emzoom. This accomplishment serves as a testament to our robust technical integration capabilities and vast collective expertise in efficiently delivering manufacturing excellence while maintaining the highest quality standards,” Tan emphasised. With the SOP initiation, the CKD production of GAC GS3 Emzoom will now transition into the Full Production stage.
“I eagerly anticipate the ongoing support from governmental bodies and individuals in both nations. GAC is steadfast in its commitment to closely collaborate with Tan Chong Group, seizing emerging opportunities, deepening cooperation, optimising resource synergy, leveraging complementary strengths, and crafting a strategic win-win situation for both entities. This collective endeavour will rejuvenate regional economic and social development, injecting renewed vitality into the friendly alliance between China and Malaysia,” commented the President of GAC Group, Feng Xingya, expressing his strong optimism about the partnership between GAC and Tan Chong Group.
