Tan Chong and TQ Wuling Partner to Assemble EV Batteries Locally

Tan Chong Motor Group and SAIC-GM-Wuling (SGMW) have entered a strategic agreement to establish local assembly operations for electric vehicle (EV) batteries in Malaysia. This move marks a significant step toward localising the EV supply chain, with the partnership expected to explore not only manufacturing but also the broader ecosystem of battery management.

According to the original publisher, the collaboration involves a one-year agreement that commenced on September 17. The project centres on a partnership between Tan Chong and Saike REPT Power Battery System, which serves as TQ Wuling’s primary battery supplier. Saike is a joint venture between Liuzhou Saike Technology Development and REPT Battero Energy. While the formal announcement on social media confirmed the intent to assemble EV batteries locally, specific details regarding factory locations, investment quantum, or production capacity remain undisclosed.

The scope of this agreement extends beyond simple assembly. Reports indicate that the companies will evaluate the feasibility of supplying these battery components to overseas markets, potentially positioning Malaysia as a regional hub for EV parts. Furthermore, the collaboration intends to address the entire lifecycle of an EV battery, including the responsible handling, recycling, and second-life utilisation of used battery packs, which is a critical consideration for the long-term sustainability of the EV industry.

This development follows Wuling’s successful track record in Indonesia, where the brand became the first Chinese automaker to manufacture EV batteries locally. Their "Magic Battery" production line in Jakarta reached operational status in just 4.5 months, with an investment of approximately RM24 million. Whether the Malaysian project will follow a similar accelerated timeline remains to be seen, as the current agreement is initially structured as a one-year exploratory phase.

For Malaysian consumers, the localisation of battery production could have a positive impact on the affordability and accessibility of EVs. By reducing reliance on imported battery packs, manufacturers may be able to manage costs more effectively, potentially lowering the entry price for models like the Wuling Bingo. As the government continues its transition away from broad fuel subsidies—with unsubsidised petrol currently priced at RM4.37 per litre—the growth of a local EV ecosystem offers motorists a more viable pathway to reducing long-term transportation expenses.

For local SMEs and the labour market, this initiative could drive demand for specialised technical roles. With the national unemployment rate at 3.0% as of June 2026, the introduction of a new manufacturing vertical provides a timely opportunity for skills upgrading in battery technology and electronics. For investors, this partnership signals a maturing local automotive industry that is shifting from legacy assembly toward high-tech energy storage solutions.

The timing of this announcement aligns with a broader economic period of robust growth, with Malaysia recording a 6.0% year-on-year real GDP increase in the latest quarter. While inflation remains relatively stable at 1.9%, the automotive sector faces pressure to remain competitive as global players look to Southeast Asia to establish their manufacturing footprints. This partnership positions Tan Chong as a key player in the government’s wider goal of accelerating EV adoption.

Despite the optimism, several questions remain unanswered. The companies have yet to confirm the projected production volume, the specific models that will benefit from these locally assembled batteries, or the anticipated start date for full-scale commercial manufacturing. Stakeholders will be watching closely to see if the one-year exploratory period yields the necessary technical certifications and economic viability required to move into mass production.