Malaysia’s first national car-maker, Proton Holdings Bhd, revealed that six Chinese manufacturers have signed agreements to localise production of key components for new vehicle models it plans to produce in the near future.
Proton, with China’s Zhejiang Geely Holding Group as its strategic partner, confirmed that four new joint venture agreements and two technology transfer agreements have been signed with local companies to help strengthen its local supply chain, covering parts for both internal combustion engine (ICE) vehicles and electric vehicles (EVs). The deals include the local production of systems such as advanced driver assistance systems (ADAS), braking, lighting, and heating, ventilation and air conditioning (HVAC) systems.
Chinese supplier Imotion Automotive Technology (Suzhou) Company has agreed to localize production of ADAS systems through a joint venture with local supplier Delloyd Technology Bhd, while Liuzhou Sanly Autoparts Company has agreed to produce braking systems in partnership with PEPS JV (M) Sdn Bhd.
Jiangsu Dekai Auto Parts Company has agreed to establish a headlamp production joint venture with Malaysia’s JHM Consolidation Bhd, while Shanghai Yinlun Heat Exchange Systems Company will localize production of HVAC systems in partnership with Trillion Speed (M) Sdn Bhd.
In terms of technology transfer agreements, Malaysia’s SHJ Interia Sdn Bhd has signed a partnership with Changchun Fawsn Automotive Trim Co Ltd, while Xenso Electronics Sdn Bhd will work with Freetech Intelligent Systems Co Ltd to co-develop ADAS rear and side detection systems.
Proton confirmed that the agreements will help accelerate the localization rate of new models and bring new technologies into Malaysia's automotive supply chain, helping to improve the competitiveness of its vehicles.
Proton’s chief procurement officer, Wang Huaibing, said that the deals “reflect Proton’s long-term commitment to manufacturing vehicles in Malaysia, while also establishing an automotive hub. He added: "With high tech components becoming increasingly prevalent in our models, it is important for Proton to bring their development and production of these components into the local ecosystem.”
