Perodua BEV Project Advances With TCMA Serendah Agreement

Perodua BEV Project Advances With TCMA Serendah Agreement

Announced on September 14, 2026, the Perodua BEV Project moved forward after Tan Chong Motor Assemblies Sdn Bhd (TCMA) signed a master agreement with Perodua Sales Sdn Bhd (PSSB) for the battery electric vehicle project at Serendah, Malaysia. The agreement establishes TCMA’s role in providing production-related services for the project, including electro-deposition coating, painting line services, and rental of a designated assembly line. The arrangement also covers related services required for the project, creating a defined operational framework between the two companies as preparations for BEV manufacturing at the Serendah site progress.

TCMA Services Under the Master Agreement

Under the agreement, TCMA will provide electro-deposition (ED) coating and painting line services to PSSB for the BEV project. TCMA will also rent a designated assembly line and provide related services associated with the project. These responsibilities place TCMA in a supporting manufacturing role, focused on production infrastructure and processes rather than regulatory approvals or project equipment ownership. The defined service scope gives PSSB access to established coating, painting, and assembly capabilities while maintaining a clear division of responsibilities between the parties involved in the Serendah BEV manufacturing project.

Agreement Duration and Extension Option

The master agreement became effective on June 1, 2026, and has an initial term of three years. This means the agreement provides a defined service arrangement extending through the initial contractual period, while also allowing for additional continuity if the parties choose to exercise the available option. PSSB has the option to extend the agreement for another two years. The extension provision therefore creates the possibility of a total five-year arrangement, although the additional two-year period remains an option rather than a confirmed extension under the agreement.

PSSB Regulatory and Equipment Responsibilities

PSSB will retain responsibility for procuring, obtaining, and maintaining the regulatory approvals and licenses required for BEV manufacturing. This includes managing the regulatory requirements associated with establishing and operating the project within Malaysia. PSSB will also be responsible for maintaining and insuring its project equipment. The allocation separates regulatory and equipment responsibilities from TCMA’s manufacturing-service obligations, establishing distinct roles for the companies as the project progresses. The agreement therefore defines both the production services supplied by TCMA and the compliance and equipment responsibilities retained by PSSB.

Industry Impact & Outlook

The agreement is significant because it establishes a practical manufacturing-services framework for Perodua’s BEV project at Serendah, linking production support from TCMA with regulatory and equipment responsibilities retained by PSSB. The arrangement could help define how existing manufacturing capabilities are used to support BEV production while giving each company a specific operational role. Its three-year initial term, together with the two-year extension option, provides a structured period for the collaboration. The next important developments will depend on PSSB securing the required approvals and licenses and progressing the project’s manufacturing activities.

Frequently Asked Questions

What does the TCMA and PSSB agreement cover?
The agreement covers manufacturing support services for Perodua’s BEV project at Serendah, Malaysia, including coating, painting, assembly line rental, and related services. TCMA will provide electro-deposition coating and painting line services, while also renting a designated assembly line to PSSB. PSSB remains responsible for obtaining and maintaining required BEV manufacturing approvals and licenses. It will also maintain and insure its project equipment. The agreement took effect on June 1, 2026, for three years, with PSSB holding an option to extend the arrangement for another two years.