Chery is in talks with its local partners to establish a local assembly (CKD) operation in Malaysia, said the company in its latest announcement today.

“Chery remains highly committed to Malaysia – it is currently working closely with local partners towards establishing assembly operations in the country,” the company said in its press statement.

Not much else is mentioned but market rumours say that Chery is in talks with a local government-linked company (GLC) to assemble at least two SUV models, which are expected to be launched sometime in the second half of 2023.

The UMW Group, DRB-Hicom, and Sime Darby Motors are GLCs that either own or have a stake in an automotive assembly plant. Of the three, only DRB-Hicom (Hicom Automotive Manufacturers, Pekan) and Sime Darby Motors (Inokom, Kulim) do contract manufacturing.

Local assembly is crucial to escape the high 30 percent import tax. Depending on the value of investment, manufacturers can also apply for reduction in excise tax, which ranges from 75 to 105 percent, depending on engine capacity.

Unlike its fellow Chinese rival Great Wall Motor Malaysia, Chery has yet to make any official announcement regarding its new Malaysian distributor but the company has previously confirmed that the Tiggo Pro series of SUVs and the upscale Omoda 5 have been earmarked for Malaysia.

For now, the only public-facing channel the brand has is its official Facebook page.

Chery used to operate in Malaysia under Chery Alado Automobile Sdn Bhd, and later Chery Automobile (Malaysia) Sdn Bhd. before becoming dormant about 10 years ago.

As for the Chery models that will be launched in Malaysia, it will all be SUVs.

“As part of its brand renewal in Malaysia, the company is working on introducing the Omoda 5 and key models under the Tiggo Pro series in the short term, as well as developing a new nationwide sales and after-sales network to best serve Malaysians, with more details set to be announced in the near future,” said Chery.

The Tiggo 4 Pro is a B-segment Proton X50-class SUV, but minus the performance (it’s powered by only a 1.5-litre naturally aspirated 4-cylinder that makes 113 PS).

The Tiggo 7 Pro is a 5-seater Proton X70-class SUV. It is powered by a 1.5-litre 4-cylinder turbocharged petrol engine that makes 147 PS.

The range-topping 7-seater Tiggo 8 Pro will duel against the upcoming Proton X90, powered by a 1.6-litre turbocharged 4-cylinder that makes 197 PS.

Across the Straits of Melaka, Chery made its return to Indonesia in April but sales will not begin until the end of this year, with two models – Tiggo 7 Pro and Tiggo 8 Pro - to spearhead the brand’s return there.

Also read: Chery makes official return to Indonesia, set to also be base of export for ASEAN markets