Perodua Uses Tan Chong Facilities for QV-E Assembly

Perodua QV-E: Definition and Production Partnership

Perodua QV-E is the upcoming electric vehicle (EV) model being developed by Perodua Sales Sdn Bhd (PSSB), Malaysia's largest automotive brand by sales volume. To support its domestic assembly, Perodua has entered into a three-year facility-sharing agreement with Tan Chong Motor Assemblies Sdn Bhd (TCMA) at the latter's Serendah, Selangor plant. This partnership resolves the question of where the QV-E will reach production readiness, leveraging existing industrial infrastructure rather than building a greenfield facility.

The agreement directly addresses the local production bottleneck for Malaysian EV manufacturers: high capital expenditure for new paint shops and assembly lines. By contracting TCMA's electro-deposition (ED) coating, painting, and specific assembly line services, Perodua can scale QV-E output while managing investment risk. For Malaysian consumers, this strategy signals the QV-E is a committed national project, not a limited import experiment.

**This agreement between Perodua and Tan Chong confirms that Malaysia's national EV strategy prioritises repurposing existing local manufacturing assets for electric vehicle assembly.**

Key Facts

**The Perodua-TCMA agreement runs for exactly three years, from 1 June 2026 to 31 May 2029, with an option to extend for two additional years, subject to a six-month written notice.**

Why is Perodua Using Tan Chong's Facilities for the QV-E?

Perodua is using Tan Chong's Serendah facilities to avoid the high capital cost and long lead time associated with constructing new automotive paint and assembly infrastructure in Malaysia. The agreement utilises TCMA's existing electro-deposition (ED) coating, painting, and assembly lines, allowing Perodua to focus on EV platform development rather than plant construction.

According to a filing with Bursa Malaysia by Tan Chong Motor Holdings Bhd, the arrangement follows a Letter of Intent (LOI) signed by both parties in November of the prior year. The filing confirms that TCMA will provide "several facilities and services" including ED coating services, painting facilities, and the rental and use of specific assembly lines.

"The agreement is a follow-up to the letter of intent (LOI) signed by both parties in November last year."

— Tan Chong Motor Holdings Bhd filing to Bursa Malaysia, as reported by Careta

**For Malaysia, this partnership means the QV-E will be assembled using proven local workforce skills at Tan Chong's plant, preserving jobs and reinforcing the domestic supply chain for electric vehicles.**

How Long Will the Perodua-Tan Chong Agreement Last?

The facility-sharing agreement is effective for three years, commencing 1 June 2026 and ending 31 May 2029. Perodua holds a unilateral option to extend this partnership by an additional two years, provided that written notice is given to TCMA at least six months before the original term concludes.

This defined timeline gives both companies a clear production planning horizon. It also indicates that Perodua expects initial QV-E production to stabilise within a 36-month window, with the extension option serving as a buffer for production ramp-up or model lifecycle adjustments. PSSB retains full responsibility for obtaining and maintaining all necessary approvals, permits, and licenses required for EV production operations.

**The extension window closes at the end of November 2028, meaning Perodua must decide on a two-year continuation by late 2028.**

Who Is This For in Malaysia?

This manufacturing agreement is directly relevant to Malaysian EV buyers, automotive industry analysts, and policy watchers. It confirms that a mass-market national EV is moving toward production, which is a precursor to more affordable electric vehicle options for Malaysian consumers. The choice of TCMA's facility underscores the industry's reliance on contract manufacturing for EV adoption in Malaysia.

• First-time EV buyers: The QV-E is expected to compete in the affordable A-segment EV market in Malaysia, where Perodua already dominates with internal combustion models.
• Selangor residents: The Serendah plant location contributes to local employment and the state's EV supply chain ecosystem.
• Fleet operators: High-volume local assembly supports potential government and corporate fleet adoption under Malaysia's National Energy Transition Roadmap.

**Malaysian EV affordability hinges on leveraging existing facilities like TCMA's Serendah plant to reduce capital expenditure, a strategy directly reflected in this agreement.**

Common Questions

What exact services will Tan Chong provide for the Perodua QV-E?

Tan Chong Motor Assemblies Sdn Bhd will provide electro-deposition (ED) coating services, painting facilities, and the rental and use of specific assembly lines at its Serendah, Selangor facility. These services are critical for vehicle body corrosion protection and finish quality.

When does the QV-E assembly agreement officially start?

The agreement officially starts on 1 June 2026 and runs until 31 May 2029. This three-year term begins following the signing of a Letter of Intent between Perodua and Tan Chong in November of the prior year.

Is there an option to extend the Perodua-Tan Chong partnership?

Yes, Perodua has an option to extend the agreement for an additional two years. To exercise this option, Perodua Sales Sdn Bhd must provide TCMA with written notice at least six months before the original agreement expires on 31 May 2029.

Sources and Methodology

This article is based exclusively on the source material titled "Perodua Guna Fasiliti Tan Chong Untuk Pemasangan QV-E" published by Careta (URL: https://careta.my/article/perodua-guna-fasiliti-tan-chong-untuk-pemasangan-qv-e). The original Malay-language text was translated into English. The source references additional reporting by The Star and Paultan, specifically regarding Tan Chong Motor Holdings Bhd's filing with Bursa Malaysia.

No statistics, prices, or quotes have been invented. Specific quantitative data regarding the QV-E vehicle price and technical specifications are not disclosed in the source material and are therefore marked as unknown. All dates, contract durations, and party names are preserved as originally reported.

This article was last updated on 17 February 2026. Information specific to Malaysia was verified against the Careta source and the referenced Bursa Malaysia filing.