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Chery & MIDA To Collaborate On Local Supply Chain Integration

The upcoming Chery Smart Auto Industrial Park is to be the hallmark of this recently-signed collaboration. 

If having half the hall to themselves at the Malaysia Autoshow 2025 isn’t a clear enough sign that Chery intends to go big in Malaysia, here’s another massive one: a major strategic collaboration with the Malaysian government to deepen its local manufacturing roots.

This comes fresh off Malaysian Investment Development Authority (MIDA) and Chery Corporate Malaysia Sdn. Bhd. have jointly launched the Chery Premier Supply Chain Synergy Programme. Supported by the Ministry of Investment, Trade and Industry (MITI) and the Malaysia Automotive Robotics and IoT Institute (MARii), the programme brings together 12 key suppliers from China under Chery Technology and 23 Malaysian vendors.

Held at MIDA’s headquarters on 17 May 2025, the launch of this program reinforced Malaysia’s efforts to localise its automotive supply chain in line with the National Automotive Policy (NAP) 2020. The initiative is touted to further reflects the country’s broader ambition to accelerate industry development through local vendor empowerment and the adoption of next-generation vehicle (NxGV) and Industry 4.0 standards.

Now among the programme’s highlights was the announcement of the Chery Smart Auto Industrial Park, to be developed in the Beringin High-Tech Auto Valley. The park is positioned to become Chery’s regional manufacturing hub, complementing the company’s current local assembly activities across Kulim (Chery), Shah Alam (Omoda-Jaecoo), and Johor (Jetour).

The event also saw the signing of four Memoranda of Understanding (MoUs), each focused on deepening technological cooperation and investment between Malaysian and Chinese firms. These included agreements between Wuhu Atech Automotive Electronics Co., Ltd and Multi-Code Electronics Industries (M) Bhd; Cheling Smart Mobility Technology (Wuhu) Co., Ltd and Multi-Code Electronics Industries (M) Bhd; Zhejiang Wanliyang Co., Ltd and Chery Corporate Malaysia; and Wuhu Qida Power Battery Systems Co., Ltd and Chery Corporate Malaysia.

The MoUs signed are reported cover key areas such as automotive electronics, smart mobility solutions, and EV battery systems. These collaborations are expected to drive knowledge transfer, support joint R&D, and advance local capabilities in electric and intelligent mobility.

MIDA Chief Executive Officer Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid said the programme is a practical step forward for NAP 2020, particularly in building linkages between Malaysian vendors and global OEMs. He noted that by strengthening these connections, Malaysia is creating a future-ready, resilient industrial base that can adapt to new technologies and shifting global trends.

Chery’s Executive Vice President Leo Chen echoed this sentiment, stating that the company remains committed to localising its supply chain and co-developing with Malaysian partners. He described the initiative as a long-term investment in mutual growth, resilience, and regional leadership in automotive innovation.

Joshua Chin

Automotive journalist. Professional work on automacha.com. Instagram: @driveeveryday

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