EV Battery Localization Drives Tan Chong-SGMW Malaysia Deal

On October 1, 2026, Tan Chong Motor Group and SAIC-GM-Wuling (SGMW) announced a cooperation agreement focused on EV battery activities in Malaysia under the TQ brand. The agreement was signed on September 17 at the China-ASEAN Expo in Nanning, China. The cooperation establishes a framework for battery-related activities in Malaysia and supports the companies’ plans to develop local capabilities around electric vehicles and associated manufacturing operations.

EV Battery Localization and CKD Assembly

The parties will work on EV battery localization and CKD assembly under the TQ brand while also pursuing the development of a Malaysian EV supply network. The cooperation therefore covers both battery localization and vehicle-related assembly activities, with the supply network intended to strengthen the local ecosystem supporting electric vehicle production. The companies’ work is also positioned within a broader effort to build manufacturing and supply-chain capabilities in Malaysia as demand for new energy vehicles develops across the region.

SGMW Expands ASEAN Manufacturing and Supply Chain

SAIC-GM-Wuling said its global production and sales have exceeded 32 million vehicles, including more than four million new energy vehicles. Its cumulative overseas exports have also surpassed 1.6 million vehicles and vehicle sets. The Malaysian cooperation forms part of SGMW’s broader manufacturing and supply-chain expansion in ASEAN, giving the company an additional framework for developing regional production capabilities while working with Tan Chong Motor Group on localized EV battery activities and CKD assembly under the TQ brand.

Malaysia EV Supply Network Development

The planned Malaysian EV supply network is a central element of the cooperation because the agreement extends beyond individual battery activities to the development of supporting local capabilities. By combining EV battery localization with CKD assembly under the TQ brand, the parties aim to establish a more integrated manufacturing and supply-chain structure in Malaysia. The agreement also connects these activities with SGMW’s wider ASEAN expansion, potentially strengthening the role of Malaysia within the company’s regional manufacturing and supply-chain strategy.

Industry Impact & Outlook

The cooperation could strengthen Malaysia’s position in the regional EV manufacturing supply chain by linking battery localization, CKD assembly, and supplier-network development under the TQ brand. For Tan Chong Motor Group and SGMW, the agreement creates a framework for building localized capabilities while supporting SGMW’s wider ASEAN manufacturing objectives. The immediate next steps are expected to center on implementing the agreed battery and assembly activities and developing the related Malaysian supply network. Its significance will depend on how effectively the companies translate the agreement into operational production and supplier capabilities.

Frequently Asked Questions

What does the Tan Chong and SGMW cooperation cover?
The cooperation covers EV battery localization and CKD assembly under the TQ brand in Malaysia, alongside development of a Malaysian EV supply network. The agreement was announced on October 1, 2026, after being signed on September 17 at the China-ASEAN Expo in Nanning, China. The activities are also intended to support SGMW’s broader manufacturing and supply-chain expansion across ASEAN. SGMW reported that its global production and sales have exceeded 32 million vehicles, including more than four million new energy vehicles.