To jog your memory, Perodua Sales Sdn Bhd (PSSB) and Tan Chong Motor Assemblies Sdn Bhd (TCMA) last month signed a letter of intent (LOI) for the latter to provide electro-deposition coating and painting line services, as well as rental and use of certain designated assembly lines, for the Perodua QV-E.
The Edge now reports, citing executives privy to the deal, that Perodua is considering buying Tan Chong’s Serendah plant – located just 3 km away from the former’s Sungai Choh base – for about RM500 million.
“Perodua is leasing a capacity of 30,000 units per year at Tan Chong’s Serendah facility, which has a production capacity of around 40,000 units per year. It is also looking at the possibility of acquiring the Serendah plant,” one of the executives said, adding that the leasing deal is expected to contribute some RM80 million to Tan Chong.
It would appear to be a win-win situation. Perodua is already operating beyond its maximum capacity of 320,000 units annually (its two plants – Perodua Manufacturing Sdn Bhd and Perodua Global Manufacturing Sdn Bhd – combined), while Tan Chong has been facing under-utilisation at its Serendah and Segambut plants, which have a combined capacity of 65,000 units a year, say research analysts.
The Edge writes that according to a November 26 Kenanga Research report, Tan Chong has a 13% production capacity utilisation rate (8,450 units). Only 7,785 Nissans found Malaysian homes last year – TCMA Serendah currently assembles the Serena and Almera while TCMA Segambut makes the X-Trail, as well as non-Nissan vehicles such as the GAC GS3 Emzoom, GAC Emkoo and TQ Wuling Bingo.
The Edge reports that Kenanga Research forecasts a RM185.5 million net loss for Tan Chong in FY2025 and a RM164.3 million net loss in FY2026, while RHB Research forecasts RM166 million and RM107 million respectively. In the first nine months of 2025, the company’s net loss shrunk to RM114.3 million from RM146.11 million in the same period last year, while its revenue increased 3.23% to RM1.62 billion.
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