Tan Chong and SGMW plan local EV battery assembly in Malaysia under TQ Wuling partnership

Tan Chong Motor Group and SAIC-GM-Wuling (SGMW) have signed a cooperation agreement to advance electric vehicle battery localisation in Malaysia, extending their partnership beyond vehicle assembly into core EV components.

The collaboration will begin with the localisation and completely knocked-down (CKD) assembly of EV batteries under the TQ brand. The aim is to develop a stronger Malaysian supply chain while supporting SGMW’s expansion across ASEAN.

Announced in a statement dated 1 October 2026, the agreement was signed on 17 September at the 23rd China-ASEAN Expo (CAEXPO) in Nanning, Guangxi. It is among the first major initiatives under SGMW’s newly introduced Global 5 Strategy.

What does the battery localisation agreement cover?

The initial focus is local battery assembly and the development of supporting suppliers in Malaysia. This would bring another part of the EV production process into the country, building on Tan Chong’s existing manufacturing operations.

The agreement was signed by Liu Zhijun, Director of Marketing and Service at SGMW’s Liuzhou Saike Technology, and Wan Wei Sun, Head of TQ Wuling, representing Tan Chong Motor Group.

For context, TQ Wuling announced the start of local assembly of the Bingo EV at Tan Chong’s Segambut plant on 21 January 2026. The battery cooperation therefore follows an existing Malaysian vehicle assembly programme.

That said, the latest announcement does not identify which vehicles will receive the locally assembled batteries. It also does not disclose the project’s investment value, production capacity, manufacturing location or start date.

The scope should also be read carefully: an agreement for CKD battery assembly does not, by itself, confirm that battery cells will be manufactured in Malaysia.

What is SGMW’s Global 5 Strategy?

Unveiled at CAEXPO, Global 5 sets out SGMW’s plan to expand its overseas business beyond vehicle exports. It covers manufacturing, supply chains, sales, talent development and financial capabilities, with ASEAN positioned as a key gateway for international growth.

SGMW identifies five strengths behind the strategy: its product portfolio, “Tian-Ling-Shen” technology system, Intelligent Island Manufacturing System (I²MS), coordinated industrial capabilities and 68 years of automotive manufacturing experience.

Overseas partners can choose from five cooperation models:

• Vehicle trade
• Distribution
• Combined production and sales
• Full industrial-chain cooperation
• Technology licensing

This gives partners scope to participate at different levels, from selling imported vehicles to establishing manufacturing and component supply operations.

According to SGMW, cumulative global production and sales have exceeded 32 million vehicles, including more than four million new energy vehicles. The company also reports ten consecutive years of overseas export growth, with cumulative exports surpassing 1.6 million vehicles and vehicle sets.

Malaysia’s role in SGMW’s ASEAN expansion

The Malaysian battery project fits SGMW’s broader push to establish production and supply networks within its overseas markets.

At CAEXPO, SGMW also joined People’s Tribune and industry experts to release a report examining greener manufacturing and closer international automotive cooperation. Its focus includes manufacturing, technology, suppliers and workforce development.

For Malaysia, the proposed battery localisation programme could create opportunities for domestic suppliers and technical personnel as the partnership develops. Tan Chong contributes its local manufacturing and market experience, while SGMW brings its EV technology and production capabilities.

The next details to watch are where battery assembly will take place, when operations will begin and which TQ Wuling models will benefit. Those announcements will give Malaysian buyers a clearer picture of what this agreement means for the cars they can actually purchase.