KUALA LUMPUR: EP Manufacturing Bhd (EPMB) signed a memorandum of understanding (MoU) with China-based BAIC International Development Co Ltd (BAIC International) to locally produce BAIC's BJ40P and X55II sport utility vehicles (SUVs), future right-hand drive (RHD) internal combustion engine (ICE) vehicles, and electric vehicles (EVs).
According to a filing with Bursa Malaysia today, both companies agreed to jointly develop BAIC-branded RHD EVs to cater to Malaysia and other Southeast Asian RHD markets.
BAIC International is part of Beijing Automotive Group Co Ltd, a Fortune Global 500 company and one of China's largest carmakers.
Developing a local assembly and production base with EPMB is crucial to BAIC International's plan to establish a sales and after-sales service network for right-hand drive vehicles in Malaysia.
According to the filing, EPMB will be responsible for the local assembly of BJ40P, X55II and future BAIC ICE and EV models should both companies reach a final agreement.
Further, EPMB will also be responsible for producing parts for these vehicles in Malaysia, in line with the government's vision to boost the local content of cars assembled in the country and strengthen the automotive industry's capabilities.
In 2022, BAIC International reported producing and selling 1.45 million vehicles, including sedans, EVs and SUVs.
The company posted US$74.69 billion in revenue, making it the fourth-biggest Chinese carmaker on the Fortune Global 500.
Regarded as a pioneer in China's automotive industry, BAIC International has a long track record of innovation.
BAIC International is also the biggest individual shareholder of Mercedes-Benz Group AG, with a 9.98 per cent stake in the German automaker.
In 2022, BAIC International's joint venture with Daimler AG was responsible for producing and selling 600,000 Mercedes-Benz vehicles.