Malaysia’s Third National Car Project Could Get RM 41 Billion Funding From China

After Tun Mahathir voiced his intention of wanting a third national car, two companies from China have shown interest by proposing to invest RM 41 billion in the project and to construct a regional hub in southern Perak.

The companies - GSR Capital and Envision Energy, both Chinese EV manufacturers, submitted their joint proposal to the government during the Prime Minister’s visit to China recently. The joint proposal with Concept Fields Sdn Bhd also sees the participation of Nissan.

Envision Energy currently holds a 75% stake in Automotive Energy Supply Corporation (AESC), Nissan’s lithium-ion battery unit. Envision will bring in AESC to partner with GSR Capital to set up a regional EV manufacturing base in Perak.

The RM 41 billion project will spread over a five year period and will include the production of EV batteries.

Elsewhere, Geely has also shown interest to participate in the third national car project. According to sources familiar with the matter, Geely plans to upgrade its operations here in Malaysia.