KUALA LUMPUR: Warisan TC Holdings Bhd's (WTCH) unit is exploring the feasibility of manufacturing complete knocked-down (CKD) EMKOO and GS3 EMZOOM models.
It is also looking at exporting the GS3 EMZOOM model to Vietnam.
WTC Automotif (M) Sdn Bhd (WTCA) signed a memorandum of understanding with GAC Motor International Limited to explore the viability of manufacturing the right-hand drive EMKOO model (A58-G) and left-hand drive GS3 EMZOOM model (A79-G) last Saturday.
WTCH Group said the feasibility study will give it an opportunity to achieve economies of scale by maximising its investment value of the existing infrastructure, resources, human skillsets and plant facilities following the mass production of CKD models.
It will also provide an opportunity for WTCH Group to enter into the international automotive market and accelerate the pace of market penetration in Malaysia with different vehicle models.
This in turn is expected to help WTCH grow revenue and contribute to the long-term sustainable growth of WTCH Group's businesses.
The project will progress through three phases. Phase 1 involves examining the feasibility of the right-hand drive EMKOO model in CKD form, expected to be completed by April 30, 2024.
Phase 2 will focus on assessing the feasibility of the left-hand drive GS3 EMZOOM model in CKD form, targeted for completion by May 31, 2024.
Phase 3 entails evaluating the feasibility of exporting the left-hand drive GS3 EMZOOM model, assembled by WTCA in Malaysia during phase 2, to Vietnam in complete build-up form before Dec 31, 2024, with an anticipated completion date of July 31, 2024.
WTCH's share price traded unchanged at RM1.03 a share today.