tan chong serendah

Tan Chong Motor Holdings Bhd (TCM) will assemble cars for Mitsubishi, according to a report by Starbiz. An April 2013 agreement between Mitsubishi Motors Malaysia (MMM, 52% owned by Mitsubishi Japan) and TCM’s Tan Chong Motor Assemblies surfaced in a report by Hong Leong Investment Bank Research.

In June, we caught wind of a new OEM contract assembly deal for TCMA, and speculated that the other party will be Mitsubishi – this confirms it.

This deal with Tan Chong comes after Mitsubishi terminated its collaboration agreement with Proton following the latter’s change of ownership to DRB-Hicom Bhd, which then paired the national carmaker with Honda as a foreign strategic partner. The Proton-Mitsubishi plan was announced in September 2011.

The relationship has been confirmed by MMM vice-president Hoffen Teh, who said that both parties had more or less reached consent of the contractual agreement’s details. “The startup in production would not be so soon, and we will announce the details in due time,” he told Starbiz. Teh declined to reveal the models to be assembled, but said that it would be for domestic demand only. In 2011, Mitsubishi revealed this Malaysian assembly model to be the Mitsubishi ASX in a presentation titled MMC’s ASEAN Business.

Tan Chong Motor Assemblies has two plants in Malaysia, in Segambut and Serendah. The Serendah plant rolls out Nissan models such as the Almera, Livina, Sylphy and Teana, whereas the old KL plant churns out the Navara pick-up truck and non-Nissan cars like Subaru’s XV crossover.