JAC Motors to invest in Malaysia: CKD hub & ASEAN export powerhouse

In a major development for Malaysia's automotive sector, JAC Motors, a leading Chinese automotive manufacturer, is set to invest in the country by establishing a completely knocked down (CKD) assembly and export hub. The decision, backed by the Ministry of International Trade and Industry (MITI), is part of JAC’s broader strategy to expand its footprint across the ASEAN region, making Malaysia a central player in the regional automotive supply chain.

According to MITI's Minister, Tengku Zafrul Aziz, this initiative is not only a vote of confidence in Malaysia’s robust automotive infrastructure but also a strategic move to boost the country’s export potential. By positioning Malaysia as its main CKD hub for the ASEAN region, JAC Motors aims to streamline the production of vehicles and parts for efficient export to neighboring countries like Thailand, Indonesia, and Vietnam.

Why Malaysia?

Malaysia’s competitive edge comes from its well-developed supply chain, strategic location, and strong government incentives. The country's industrial parks and existing automotive ecosystem provide a conducive environment for JAC’s investment, while Malaysia's skilled workforce and favorable trade agreements within ASEAN make it an attractive base for CKD operations.

Additionally, this partnership with JAC Motors aligns with the government’s aspirations to enhance local automotive manufacturing and boost exports. MITI has been actively working to attract foreign direct investment in sectors like EV production, green technologies, and the development of cleaner energy solutions. JAC's commitment could pave the way for further innovation in these areas.

Boost to the Local Economy

The establishment of JAC’s CKD and export hub is expected to create job opportunities, increase local manufacturing capacities, and enhance technical know-how within the automotive industry. It’s also a positive development for the supply chain, as local suppliers will benefit from the growing demand for automotive components.

This investment will not only strengthen Malaysia’s position as a key automotive player in Southeast Asia but also solidify the ASEAN region as a critical market for the global automotive industry.

Read More: What Are The Differences Between CKD and CBU cars?

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