Tan Chong to support Perodua's Serendah EV project

KUALA LUMPUR: Tan Chong Motor Holdings Bhd has entered into a three-year agreement with Perodua Sales Sdn Bhd to supply coating, painting, and assembly line services for the national carmaker's battery electric vehicle (BEV) project in Serendah. Tan Chong Motor Assemblies Sdn Bhd (TCMA) will handle electro-deposition (ED) coating and painting line services, along with the rental of a designated assembly line and associated services.

In exchange, Perodua Sales will be responsible for paying TCMA service fees and rental charges. The agreement began on June 1 and includes an initial term of three years, with an option to extend for an additional two years, provided notice is given at least six months prior to the initial term's expiration. Perodua Sales will be liable for obtaining and maintaining all required approvals, permits, and licenses, as well as adhering to relevant laws and regulations concerning BEV manufacturing.

They will also be responsible for maintaining and properly insuring their equipment for the project. Tan Chong stated that the project will not impact its issued share capital. The project is anticipated to boost Tan Chong's revenue and earnings beginning with the financial year ending on December 31, 2026. This agreement follows a letter of intent between TCMA and Perodua Sales, which was announced on November 14 of the previous year.