First locally-assembled Chery Omoda E5 rolls off production line at Kulim plant

Chery Auto Malaysia has announced that it has commenced local assembly operations for the Chery Omoda E5, eight months after it was launched in CBU form. The first unit of the EV has rolled off the production line at the Inokom Plant in Kulim, Kedah.

The accomplishment demonstrates Chery’s commitment to improving local manufacturing capabilities, promoting Malaysia’s industrial growth, and contributing to the country’s transition to a sustainable, electrified automotive future.

The Omoda E5 is the Chery’s fourth vehicle to be assembled in the country, following the Tiggo 7 Pro, Tiggo 8 Pro, and Omoda 5.

“By assembling our cars locally, it not only allows us to provide more competitive pricing but also signifies Chery’s long-term commitment in Malaysia, fostering job creation and skill development within the local workforce,” said Leo Chen, President of Chery Auto Malaysia.

Leo Chen added that the initiative is in-line with the government’s policy of localisation compliance and will support and assist Malaysia to become a regional hub for electric vehicles.

Dato’ Jeffri Salim Davidson, Group Chief Executive Officer of Sime Darby Berhad said the significant milestone reflects the strengthening partnership and shared vision between Sime Darby and Chery.

“Our expertise spans the entire automotive value chain, and assembly is a crucial area of growth and a key enabler for our Motors division. We look forward to achieving many more milestones together as we expand our facility and reaffirm our commitment to advancing sustainable mobility solutions,” he added.

During the line-off event YB Liew Chin Tong, Deputy Minister of Investment, Trade and Industry said, “Chery should be congratulated for the fact that 99% of their assembly workforce here are Malaysians. The industrialisation of Malaysia must mean better jobs and better pay for Malaysians, not more jobs for unskilled foreign workers. Whenever possible, we should automate more and use more technology, instead of hiring unskilled foreign workers.”

He added that, as of 30 September 2024, there were 32,543 Battery Electric Vehicles (BEVs) registered on Malaysian roads. However, 98% of these BEVs are imported as Completely Built-Up (CBU) units.

“With this line-off ceremony, Chery joins the ranks of brands assembling EVs in Malaysia, marking a significant advancement in localizing electric vehicle production.

“Localising as much as possible in terms of manufacturing of vehicles has a balance of payment dimension. In 2023, the automotive sector recorded a total import value of RM62.14 billion, while total export value was RM18.01 billion,” said YB Liew.