Chery To Build US$300mn Plant In Malaysia
News: Chinese automaker Chery Holdings plans to invest US$300mn to build a manufacturing plant in Malaysia by 2018, Automotive News reports. The carmaker wants to make the country its major regional hub for right-hand drive models in South East Asia, due to its stable government, stable economy and receptive car buyers. Chery views the country as an ideal place to assemble vehicles in a completely-knocked-down format before exporting the products to other nations in South East Asia. Chery has more than 50 dealerships in Malaysia.
BMI View: On the production side, BMI has become slightly more negative, revising down its 2013 vehicle production forecast slightly, from growth of 10%, down to 7.7%. This reflected a slightly slow start to the year, with uncertainty ahead of the May 5 general election also reportedly creating more uncertainty on the production side than it did for new vehicle sales. However, we remain bullish in the long term , forecasting an average annual growth rate of 7.4% over the 2013-2017 period, to reach in excess of 810,000 units.