The Government is in discussions with two more potential foreign automotive companies who are looking to manufacture energy efficient vehicles (EEV) in Malaysia, according to a report from The Star. The automakers were not named.

If they go through by the end of the year, the deals will be worth more than RM7 billion in investment, and will add to the RM7 billion in investment that has already gone into the industry thus far in 2014.

Currently, a cost-benefit analysis on the companies’ proposals is being carried out by the Malaysian Automotive Institute (MAI) and the Malaysian Investment Development Authority (MIDA), said MAI CEO Madani Sahari.

The study will determine the financial strength of the two companies and their capability to undertake their proposed investment, StarBiz reported.

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“Once the cost-benefit analysis is completed, we will present it to MITI and the Finance Ministry for final approval,” Madani told the publication last week at the informal session with the press, in which the news of Euro 5 diesel availability in the country dominated.

If successful, the companies would join Go Automobile Manufacturing (GAM) as on the EEV manufacturing front – in April, GAM became the first company to obtain an EEV licence to assemble Great Wall Motors products locally.

In partnership with Chinese automaker Great Wall Motors, GAM will build Great Wall vehicles for both the domestic as well as export market. Its CKD programme will initially involve two GWM models, the Haval M4 and Haval H6 SUVs.

Both will be built at the GAM plant in Gurun, Kedah, with market rollout expected to be in September. The GAM-GWM partnership plans to export 60% of its production to ASEAN countries – dealer arrangements already exist in Thailand and Cambodia, with operations expected to commence by Q3 this year.

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Around RM2 billion will be pumped into the project, out of which around RM700 million will be provided by Chinese investors not aligned to GWM. The project is expected to create 4,000 new jobs in Gurun.

Perodua, meanwhile, has also laid out expansion plans in line with the focus on EEVs, Madani added. Back in April, the automaker had said it was in the midst of submitting its wishlist to the government in terms of incentives.

The carmaker is investing RM3.5 billion in the building of its new Perodua Global Manufacturing plant and to expand its existing assembly facility. Its new Perodua ‘Axia’ Global EEV is due out later this year.