Tan Chong Motor Holdings Bhd has announced plans to set up a RM500 million automotive hub on 338 acres in Bagan Datuk, Perak. The “Tan Chong Automotive & Commercial Vehicle Hub” will tap into the growth regions of the North Corridor Economic Region.

“More than just an automotive hub, this is a strategic business plan that demonstrates the Tan Chong Motor Group’s commitment towards Malaysia’s industrialisation and economic growth,” the company said in a press statement, adding that the long-term investment will create new jobs, an influx of new investments and spur economic growth in Bagan Datuk.

The initial RM100 million investment will go towards land acquisition and the construction of a bus and truck plant in the first phase of the development. The commercial vehicles produced at the plant, which is expected to start operations in 2021, will be for domestic consumption and exports.

Tan Chong points out that the buses it produces are currently exported to Singapore, Hong Kong and Myanmar; and it is exploring potential markets such as Thailand, Sri Lanka, Vietnam and Indonesia, among other countries.

Best known as the distributor of Nissan vehicles in Malaysia, Tan Chong also markets Renault and Infiniti brands as well as UD Trucks buses and trucks. The group operates auto plants in Segambut (KL) and Serendah (Selangor), and does contract assembly for the likes Mitsubishi and Subaru.