Both firms are looking to establish a production and localisation plan to assemble the EVs in Malaysia
by JAY SHEILA / pic BLOOMBERG
EP MANUFACTURING Bhd’s wholly owned subsidiary, EP 4Wheeler Sdn Bhd (EP4W), signed a memorandum of understanding with Cahaya Bumi Sdn Bhd to collaborate and venture into the business of new and used imported car distribution for electric vehicles (EVs) and its localisation activity.
In an exchange filing to the local bourse, EP Manufacturing said EP4W involved in automotive and engineering businesses which include manufacture, develop, fabricate, produce, assemble, buy, sell, import, export, distribute four wheelers and all other types of automobiles.
The company added that they have enlarged their customer base to include Perusahaan Otomobil Kedua Sdn Bhd, Proton Holdings Bhd, Honda Malaysia Sdn Bhd, Bermaz Motor Sdn Bhd and UMW Toyota Motor Sdn Bhd as their main customers.
“Cahaya Bumi is a thriving used car dealer hence, they will have an upper hand to obtain the necessary approval from the relevant government authorities such as Road Transport Department Malaysia, Malaysian Investment Development Authority, the International Trade and Industry Ministry and/or local council(s).
“Meanwhile, EP4W would provide financial resources and/or assistance for the initial business operation,” EP Manufacturing said.
According to the filing, the agreement is intended to enable EP4W and Cahaya Bumi to obtain the local exclusive distribution agent or franchise holder for the country and assembly of EVs from a reputable EVs manufacturer in the form of complete built-up and complete knocked-down, and to establish a production and localisation plan to assemble the EVs in Malaysia.
EP Manufacturing stressed that there would be a redefinition of the present EVs market in Malaysia, which would help in the innovation and the establishment of EVs industry in Malaysia by bringing in the technology know-how of EVs.
EP Manufacturing’s shares fell 3.7% to RM1.04.