Tan Chong Motor Holdings Bhd (TCMH) is exploring the localisation of electric vehicle (EV) battery packs and related components in Malaysia through a potential partnership with China-based Saike REPT Power Battery System Co Ltd. This initiative aims to strengthen Malaysia’s EV supply chain and assess opportunities for battery lifecycle management and exports.

TCMH’s indirect wholly-owned subsidiary, TQ Manufacturing Sdn Bhd (TQM), has signed a memorandum of understanding (MoU) with Saike to conduct feasibility studies on the proposed collaboration. The MoU, effective for 12 months from September 17, 2026, sets a framework for the parties to jointly evaluate the viability of producing EV battery packs and other specified components domestically. This includes parts for the TQ Wuling electric vehicles, of which TQM is the assembler and distributor in Malaysia under a strategic collaboration with SAIC-GM-Wuling (SGMW).

Saike serves as the designated battery-pack supplier for SGMW’s TQ Wuling EVs. Under the MoU, the two companies will also explore opportunities to supply Malaysia-made battery packs and components to overseas markets. Additionally, the partnership is expected to address responsible handling, recycling, and second-life utilisation of used EV batteries, further enhancing the sustainability of EV production.

Tan Chong highlighted that the collaboration supports compliance with applicable localisation policies while bolstering Malaysia’s position in the EV industry. The MoU allows for the possibility of entering into a definitive agreement, dependent on the outcomes of the ongoing feasibility assessments.

Following the announcement, shares of Tan Chong Motor Holdings were steady, closing at 45.5 sen on Bursa Malaysia.