Geely’s car assembly hinges on NAP
Chinese carmaker, Geely Automobile Holdings Ltd’s proposed assembly of cars in Malaysia is still on hold pending the outcome of Malaysia’s national automotive policy (NAP), said executive director Lawrence Ang.
He said Geely had earlier planned to produce its car in Malaysia last year after sealing an agreement with Information Gateway Corporation Sdn Bhd (IGC). However, Geely’s assembly plan had been delayed as it awaited details of NAP.
Speaking to reporters after CIMB’s investors conference “Hong Kong’s China Plays” in Kuala Lumpur on Feb 21, Ang said Geely hopes to make Malaysia its manufacturing hub for the Asean market to enjoy lower tariffs.
IGC currently holds the entire stake in the Kuantan assembly plant and there are no immediate plans to take up any stake. Under the agreement, Geeley would provide the technical support and design to the local partner only.
Ang said the Kuantan assembly plant would be capable of assembling 50,000 cars annually.
Geely is looking at a return on investment in Malaysia of at least 15% to justify any move to expand abroad. If all goes well, Geely plans to assemble the Freedom Cruiser, a compact car, with engine capacity of 1.3 litres and 1.6 litres.
A 1.3-litre is retailed in China at US$6,000 (RM22,320) while a 1.6-litre car costs US$8,000 (RM30,000). Currently 95% of the cars made in China are sold in the domestic market
He said Geely had earlier planned to produce its car in Malaysia last year after sealing an agreement with Information Gateway Corporation Sdn Bhd (IGC). However, Geely’s assembly plan had been delayed as it awaited details of NAP.
Speaking to reporters after CIMB’s investors conference “Hong Kong’s China Plays” in Kuala Lumpur on Feb 21, Ang said Geely hopes to make Malaysia its manufacturing hub for the Asean market to enjoy lower tariffs.
IGC currently holds the entire stake in the Kuantan assembly plant and there are no immediate plans to take up any stake. Under the agreement, Geeley would provide the technical support and design to the local partner only.
Ang said the Kuantan assembly plant would be capable of assembling 50,000 cars annually.
Geely is looking at a return on investment in Malaysia of at least 15% to justify any move to expand abroad. If all goes well, Geely plans to assemble the Freedom Cruiser, a compact car, with engine capacity of 1.3 litres and 1.6 litres.
A 1.3-litre is retailed in China at US$6,000 (RM22,320) while a 1.6-litre car costs US$8,000 (RM30,000). Currently 95% of the cars made in China are sold in the domestic market
posted by Smartcar Owner at 2:41 PM
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