It appears that Perodua is considering to purchase Tan Chong Motor Holdings Bhd’s Serendah plant for about RM 500 million, according to a report by The Edge.
This development came after Perodua signed a letter of intent (LOI) with Tan Chong Motor Assemblies Sdn Bhd (TCMA) for the latter to provide electro dipping coating and painting line services, as well as rental and use of certain designated assembly services to Perodua, for the QV-E.
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According to one of the executives, “Perodua is leasing a capacity of 30,000 units per year at Tan Chong’s Serendah facility, which has a production capacity of around 40,000 units per year. It is also looking at the possibility of acquiring the Serendah plant.”
The capacity leasing deal is expected to contribute about RM 80 million to Tan Chong.
TCMHs’s plant is located about 3 km away from Perodua’s facilites in Serendah. Both the TCMH plant and Perodua’s facilities are located within the larger Sungai Choh Industrial Area, Rawang.
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At the moment, Perodua’s plants, both Perodua Manufacturing Sdn Bhd (PMSB) and Perodua Global Manufacturing Sdn Bhd (PGMSB) are operating beyond their full capacity of 320,000 units annually. Perodua sold 368,100 units in 2024, and is confident that they can sell 359,000 units this year.
The Edge report also added that Tan Chong’s production capacity utilisation rate at 13%. “This involves both its Segambut plant (capacity of 20,000 units/year for TQ Wuling light trucks, GAC vehicles and TQ Wuling Bingo EV) and its Serendah plant (capacity of 45,000 units/year for all Nissan models and rental assembly for all-new Perodua EV),” it says.
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