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Chery's factory put into production in Malaysia

(Xinhua)
Updated: 2008-09-03 09:58

KUALA LUMPUR -- The 8th overseas factory of Chinese carmaker Chery in Malaysia has been formally put into production and it has already got the mass production capacity.

The company's President Yin Tongyao made the remarks at a launching ceremony of its first CKD MPV Eastar in Malaysia on Tuesday.

The car is assembled in the Chery's 8th overseas factory set up in Johor Bahru, capital of Malaysian southern Johor state, with all parts made in China.

The company also announced that more new models will be introduced in Malaysia soon.

"Malaysia is the largest passenger car market in ASEAN and also the important link (for Chery) to other ASEAN countries' market," Yin Tongyao said.

Before the new factory, Chery has established 7 overseas factories in Russia, Ukraine, Iran, Egypt, Indonesia and Argentina.

"We are planning to accelerate more overseas factories in the coming 2 years," Yin said, adding that in 2010, there will be 14 overseas factories in Chery's overseas market.

"In 2010, we are planning to export 400,000 vehicles," Yin said.

In 2007, Chery exported 120,000 vehicles, increased by 132 percent and realized the doubling of export to overseas market for the second time, according to Yin.

With the joint venture with Malaysia's Alado Corporation, Chery intends to setup the regional headquarters in Malaysia and making Malaysia as its main manufacturing hub for producing right-hand drive vehicles targeting the ASEAN (Association of Southeast Asian Nations) markets, said Gu Jingqi, Charge d Affairs of the Chinese Embassy in Malaysia.

"Chery has already established their countrywide service network to ensure excellent after-sale service for the Chery car owners in Malaysia," Gu said.

Malaysia wants to see more investments in research and development by foreign auto manufacturers, Malaysian deputy Prime Minister Najib Tun Razak said.

"By choosing Malaysia as its base, ASEAN's fast growing auto market which is projected to reach two million new cars and light commercial vehicles by 2010, will become immediately accessible to investors through their Malaysian partner," Najib said.