ELECTRIC vehicle (EV) ownership in the country remain low despite the huge interest it has been generating amongst the public and companies.
During the grand re-launch event at the Kuala Lumpur Convention Centre (KLCC), Chery International vice president and Chery Malaysia president Shawn Xu said that the company is biding its time to venture into the new energy vehicle (NEV) market.
Xu said local sales figures for EVs still need convincing as it has barely grown since the end of last year.
Public sentiment towards an infrastructure which is still in its infancy, high price of EVs in general, and a culture which has yet to adopt the electrification lifestyle are said to be major factors for the slow uptake.
"We're taking a wait-and-see approach when it comes to selling EVs. So far our survey shows that only around 2,000 EVs have been sold in Malaysia since the end of last year until now," said Xu.
He explains that locally the company is more focused on building its brand and consumer confidence, while being cautious about overstretching itself from the start by offering products that may not get traction just yet.
It is also a decision which weighs heavily on the Chinese automaker's current business strategy which includes only selling locally assembled (completely knocked-down, CKD) vehicles.
"This makes it difficult for us to justify the local assembly for EVs so soon. We are in no rush at the moment and should be more concerned with first gaining a local foothold for the brand, as well as the trust of the public in our product and services," he added.
Unlike some of its Chinese rivals, Chery has yet to introduce an EV model as part of its lineup alongside its re-entry into the local market.
The only exception is the Omoda 5 EV model which is said to only enter the market next year though no official date has been given when this would happen.
The company aims to capture at least 20 per cent of the local EV market share once the customer base has further mature enough - no specific figure was given in relation to this.
Under its investment agreement the company is also only selling CKD models with any imported models (completely built-up, CBU) used for marketing and promotional purposes.
It was reported in May that Sime Darby Bhd's subsidiary Inokom Corporation Sdn Bhd has been appointed as the automaker's local assembler.
As with the recently launched Omoda 5 and Tiggo 8 Pro sports utility vehicles (SUVs) Chery's models will be locally assembled at the Inokom manufacturing facility in Kulim, Kedah.
Delivery of the two models are said to begin next month.
According to Xu, the company's decision to locally assemble its models has less to do with import cost, and more for its strategic investment commitment to make Malaysia a regional hub for eventual export of its models.
"It is actually cheaper to produce and export our vehicles from China. However, we need to assure our local (Malaysia) and regional customers that stock and parts are readily available if we want to prove our commitment. This is where CKD makes more sense," said Xu.
Accompanying the company's re-launch plan is the opening of 31 dealerships to across the nation which includes East Malaysia.
It is surmised that in its current phase, which includes the dealerships and plant activities, that the company will generate at least 1,000 jobs locally.