Paul Tan's Automotive Industry News

Chery sets up ASEAN assembly base in Malaysia

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Chery Tiggo

Chery Alado Holdings Sdn Bhd will assemble 5,000 Chery vehicles at Oriental Assembler Sdn Bhd’s assembly plant in Johor in the next 12 months beginning July 2008, with 60% intended for ASEAN export and the remainder for the local market. Chery Alado Holdings Sdn Bhd is a 50:50 joint venture between Alado Corp Sdn Bhd and China’s Chery Automobile Co Ltd.

Chery intends to make Malaysia its right hand drive production hub for the ASEAN market, and this first stage investment includes a total amount of US$12 million (RM38.5 million). According to Alado president Tan Sri Cam Soh Thiam Hong, the second phase is for export to Commonwealth countries and European right hand drive countries.

Oriental Assemblers Sdn Bhd also assembles CKD Hyundai vehicles in Malaysia. Chery vehicles to be assembled are 2 variants of the Chery B14 MPV (B200 2.0 liter and B240 2.4 liter), as well as the 2.0 liter Chery Tiggo T11 SUV (shown above). The Chery B240 and Chery Tiggo launched in Malaysia last year priced at RM132,972.20 and RM80,292 respectively are CBU units, so the new CKD units will most probably be cheaper.

Related Posts
Chery B240 7-seater MPV in Malaysia
Chery T11 Tiggo SUV on sale in Malaysia

Source

23 Comments »

  1. mockviper said,

    April 21, 2008 @ 11:35 pm

    probably around rm70k for the tiggo right paul? but since its Chery, quality issues will arise. safety, etc…

  2. Roti Naan said,

    April 22, 2008 @ 1:08 am

    Any local review done on this car, Paul?

  3. xenith said,

    April 22, 2008 @ 2:17 am

    Scared to buy…

  4. azrai said,

    April 22, 2008 @ 7:15 am

    Datuk Cam Soh see the oppurtinity. Good move and quick action from him. Thank’s to him, tere will be more new job created from the CKD plants, especially when it is intentionally for export market. Maybe the Chery could name their engine to CamSoh like what Proton do to CamPro. :-) Local man, with ahead thinking.

  5. schdmitz said,

    April 22, 2008 @ 7:41 am

    cheap to buy and expensive to maintain!!!!!……if $ no way to spend is ok….

  6. altimi said,

    April 22, 2008 @ 7:48 am

    Wow this is great. NOw we CAN buy imported car……………

  7. White Jack said,

    April 22, 2008 @ 7:53 am

    Chery assemble in Msia ! That shows how good Msia and China relationship :)
    Olympic torch event welcome and smoothly passed yesterday.

    Paul, is the new Honda Accord review to be release this morning ? Most of us are waiting ::)

    Thanks…

  8. normaluser said,

    April 22, 2008 @ 7:59 am

    Datuk Cam Soh is a risk taker, in my opinion. I doubt it can sell well here, given the perception of china made cars.

    Typical Malaysians carbuyers mostly trust Japanese brands for foreign cars. Just look at Koreans, depite their improvement in quality and some more CKD production (e.g. Optima), the sales is still sluggish.

  9. kjryth said,

    April 22, 2008 @ 9:07 am

    with Chery brand and Oriental Assembler this project does not appeal to me…

    chery being a china brand is not proven in any aspect except lousiness and oriental being the assembler?? much left to be desired loh…

  10. waimak said,

    April 22, 2008 @ 9:10 am

    Chery maybe hard to sell here in Malaysia but looking at the plan they have to penetrate Asean, it has huge potential. It’s a matter of fulfilling certain requirement, improving perceived quality and change the perception and Chery is close to any brand (which also means hardwork). To my surprise I did saw someone driving Chery in KL, twice to be exact (QQ and Alado).

    Rumors in an internet forum told that Proton maybe sharing B240 platform for its coming MPV and I doubt that, or maybe someone can explain it.

  11. tikus said,

    April 22, 2008 @ 9:18 am

    Good to see more brand and more choice to buyer. Proton MPV jaga jaga….

  12. BanyakMasukWorkshop said,

    April 22, 2008 @ 9:42 am

    normaluser, if a japanese car and korean car were at the same price, which would you buy? I’m buying the japanese car, but I don’t know about you.

    as for chery, i personally think the competition will be good for proton. as it is already, there is hardly any protection left for proton. sure, some imported makes are still taxed very high, but in general, almost all the main japanese makes have very little taxation today via thailand, plus the amount of “national” korean cars around, and not forgetting perodua, i believe proton is well and truly, unprotected, although many here seem to think so, and why, i don’t know.

  13. Auto_crat said,

    April 22, 2008 @ 10:26 am

    Tiggo may be acceptable here due to its lower price. But the B240 with its 2.4L engine would face a tough time here. In face I’ve seen a number of Tiggos being used in Sabah and Brunei. Mostly they were black and they do look good in black. Reliability and quality are another issues. For B240 I probably seen 1 here. If some are complaining that Naza Ria is a petrol sucker, then B240 won’t be any different. Just wait for the Proton MPV. Hopefully it’s much better than the previous attempt.

  14. knight_templar said,

    April 22, 2008 @ 11:19 am

    Come on bolehlanders, lets demand for more and better things in life. We have one of the tallest towers, we’ve put a man in space, we need better cars! We deserve it! Look at our cities and malls, we are sophisticated ppl n we need cars dat mirror this image. Chinese cars are a definite no no, for me. Maybe if they get out of Tibet i might recommend to use for LCCT cab. But not personal use.

  15. bobdbilder said,

    April 22, 2008 @ 11:30 am

    Brand building is the key to penetrate any established market. If you come into the market with a sloppy product, first impressions will last for quite some time. You tell bad experience to 3 times as many people as you tell a good experience. Its not just the Chinese and Korean cars but also applies to any makes incl Italian and American (remember Jeep Cherokee?). After my experience with my wife’s Trajet, I’d swear on the tombstone of my father that I would never buy a Korean ever again. No wonder the Hyundai spare part warehouse in Glenmarie is so big.

    The Germans, VW in particular are selling top-down. Establishing their base with high end products which would have higher reliability and slowly introducing mid market stuff which would yield higher volumes.

    Cheeky bu&&er$ aren’t they? Its like greasing the pole before giving you a right shaft. It’ll still be a pain but at least it hurts less. :)

  16. abtm said,

    April 22, 2008 @ 1:35 pm

    L’D RATHER WALK

  17. Roti Naan said,

    April 22, 2008 @ 1:47 pm

    reduce the price of this car can attract potential buyers.

    End of the day, its all in the dollar and sen. try pricing this car together with Tiara, a see la..

  18. MyviKiller said,

    April 22, 2008 @ 2:07 pm

    bobdbilder said,

    After my experience with my wife’s Trajet, I’d swear on the tombstone of my father that I would never buy a Korean ever again. No wonder the Hyundai spare part warehouse in Glenmarie is so big.
    —————————————————————-

    Yup, same goes to Kia as well.

  19. MyviKiller said,

    April 22, 2008 @ 2:10 pm

    But the Tiggo and the B240 is their bread and butter models right? Now if they have got the right price and the quality then it should sell like hot cakes here.

  20. raybrig85 said,

    April 22, 2008 @ 6:57 pm

    mabe dis one ok…who know…jz wait n see…

  21. transformer said,

    April 22, 2008 @ 9:52 pm

    can’t believe that with so many unfair barrier, Tan Sri Cam Soh still able achieve this! Slow but progressively!

  22. ahmadmckk said,

    April 23, 2008 @ 11:29 pm

    just buy peroduas they’re more worth it.

  23. ravedoggie said,

    April 25, 2008 @ 5:08 pm

    chery huh… not my cup of tea… :)
    i prefer japanese car or europe car. but never buy Korean CAR!!! regret after bought Hyundai!!!!! grrrrr….

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