Chery breaks ground for its smart factory in Malaysia, initial annual production capacity of 100,000 vehicles

[PCauto] Chery has announced the construction of the Chery Smart Auto Industrial Park in the high-tech Auto City of Selangor, Malaysia. The groundbreaking ceremony for this project marks a pivotal step in Chery’s strategic expansion in the Malaysian market.

According to reports, the industrial park is scheduled for completion in 2026, covering an area of 200 acres (approximately 81 hectares). Upon completion, it will boast an initial annual production capacity of 100,000 vehicles—with the potential to expand that capacity to 300,000 vehicles in the future. Additional land is allotted for parts suppliers, and plans include the construction of training facilities and research and development centers.

Chery is no stranger to the Malaysian market. In fact, the brand previously established an auto assembly plant in Malaysia to produce the locally sold Jaecoo J7 and Omoda C9. Today, Chery has firmly planted its roots in Malaysia, emerging as a formidable force in the local automotive industry. By the end of 2024, Chery’s annual sales in Malaysia exceeded 10,000 vehicles, positioning the brand among the main competitors in the market and earning a reputation as one of the most successful Chinese automotive brands. When sales from JETOUR are included, Chery’s total sales soar to 19,687 vehicles—cementing its status as the seventh largest automotive brand in Malaysia.

Currently, Chery offers four distinct models in Malaysia, each with its own standout features. OMODA 5, starting at RM99,800, is the brand’s best-seller. In 2024 it achieved sales of 7,466 units, accounting for 59% of Chery’s total Malaysian sales. With its stylish and dynamic design, rich feature set, and excellent value for money, it perfectly meets local consumers’ expectations for a family car.  

Tiggo 7 Pro, priced from RM123,800, has captured attention with its robust power and stable performance.

Meanwhile, the all-electric OMODA E5, with a starting price of RM146,818 and 553 units sold, has made its mark as one of Malaysia’s top ten best-selling electric vehicles, aligning well with the growing local demand for new energy vehicles.

Tiggo 8 Pro, beginning at RM159,800, boasts a spacious interior and high-end features, targeting consumers with higher standards for space and comfort.

By establishing local factories and R&D centers, Chery has not only reduced costs and enhanced product competitiveness, but also demonstrated its commitment to a long-term market presence. Such a localization strategy has spurred local job creation and skill development. Furthermore, in response to the rapid growth of the global new energy vehicle market, Chery’s timely launch of new energy models—such as the pure-electric OMODA E5—perfectly caters to Malaysia’s demand for environmentally friendly and efficient mobility solutions.

However, Chery’s journey in Malaysia is not without its challenges. The automotive market here is fiercely competitive, with strongholds maintained by domestic giants Proton and Perodua alongside established Japanese, German, and other international brands. Moreover, as more Chinese automakers like BYD, Geely, MG, NETA, and GMW enter the Malaysian market, the competitive landscape is set to become even more intense.