China's Brand Expansion Expands, BAIC Will Produce Locally In Malaysia

JAKARTA - Chinese producer BAIC Motor seems to be intensively penetrating in Asia, proving to be producing local BAIC vehicles in Malaysia.

Quoting from the Paultan page, Thursday, April 18, this certainty was revealed by the EP Manufacturing (EPMB), which said it signed a 10-year vehicle assembly agreement with the BAIC International Development, which is a subsidiary of BAIC Motor.

Under the terms of the agreement, the EPMB through its subsidiary, PEPS-JV Melaka (PJVM), will assemble and produce BAIC vehicles (CKD) in Malaysia. Initial models scheduled for production include the BJ40 Plus and X55II SUVs.

The two models mentioned above are scheduled to debut in 2025 and will be produced, at the upcoming EPMB automotive plant in Melaka which will have a production capacity of 30,000 units per year.

In its official release, the EPMB said it would act as a vehicle assembler, with BAIC providing relevant technical and training support as well as guidance and supervision on the assembly and manufacturing process. Meanwhile, Chinese car manufacturers will also be responsible for vehicle sales and marketing in the ASEAN region.

I am pleased to see the positive momentum our company has obtained. The EPMB is navigating a new agenda with a new horizon. Strategic collaboration with OEM from China shows our commitment to mapping the path to better profitability for our stakeholders," said EPMB Executive Chair Hamidon bin Abdullah.

The agreement signed by the EPMB to assemble BAIC vehicles comes just months after the EPMB signed an eight-year contract to assemble the Great Wall Motor (GWM) (originally Haval H6 and Haval Jolion) vehicles in Malaysia. The Melaka plant will handle the production of BAIC and GWM vehicles.

Not only in Malaysia, BAIC has also officially arrived in Indonesia through PT JDI (JIO Distribution Indonesia), with the BJ40 Plus SUV which has a Jeep Rubicon-like design, while X55-II is configured to carry a crossover style.

The Chinese brand also plans to build a factory in Indonesia, and is looking for a suitable place. However, during 2024 the two models will still be imported directly from China.