GAC Signs MoU With WTCA For CKD Vehicle Production In Malaysia
GAC should be able to have a price advantage thanks to its CKD deal with WTCA
WTC Automotif (M) Sdn Bhd (WTCA) and GAC Motor International Co., Ltd. Limited (GAC) have embarked on a subsidiary of Warisan TC Holdings a pioneering journey with the signing of a Memorandum of Understanding (MOU) to initiate feasibility studies for two new completely knocked-down (CKD) vehicle assembly projects in Malaysia.
The MOU marks a significant milestone, facilitating the study into CKD production of the right-hand drive GAC EMKOO for the Malaysian market and the left-hand drive GS3 EMZOOM, destined for export to Vietnam and solidifying Malaysia as a manufacturing hub.
Moreover, as a new strategic partner, WTCA is poised to leverage its automotive experience, capability, and Malaysia’s industrial ecosystem with GAC Motor International to deliver mobility solutions for the ASEAN markets.
The feasibility studies are expected to be completed by the end of July. Upon its completion, it will pave the way for the formalisation of definitive agreements, strengthening Malaysia’s position as the automotive hub for Southeast Asia markets.
Furthermore, the export of the GS3 EMZOOM SUV to the Vietnamese market will play a pivotal role in WTCA’s regional expansion plans, Technical Collaboration and Integration for Accelerated Implementation Complementing the regional growth strategy, GAC and WTCA formalised their technical collaboration through the CKD Technical Collaboration Agreement.
On top of that, this landmark agreement grants WTCA the rights to locally assemble GAC’s authorised vehicle models using CKD kits and components manufactured to the former brand’s stringent global technical specifications and quality standards.
WTCA, through its Distribution Agreement, is also entrusted with marketing, distributing and servicing these vehicles, reflecting a joint effort to deliver exceptional products and services to customers This collaboration with WTCA marks GAC’s first CKD project in an overseas market, symbolising a significant step towards expanding its- global presence.
The CKD Technical Collaboration Agreement not only establishes the groundwork for future collaboration in CKD assembly between GAC and WTCA but also showcases their shared determination to forge a strong technical partnership dedicated to delivering top-quality vehicles to customers.
The launch of Malaysian CKD Start of Production Demonstrates Collaborative Excellence. The technical partnership between both brands bore fruit with successfully initiating the CKD Start of Production (SOP) for the GAC GS3 EMZOOM compact SUV at WTCA’s Segambut plant.
This achievement was realised in just 13 months following the project announcement, a notable achievement compared to the industry average. A ribbon-cutting ceremony was conducted at its Segambut assembly plant to celebrate this SOP milestone, setting the stage for full mass production.
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