To jog your memory, Perodua Sales Sdn Bhd (PSSB) and Tan Chong Motor Assemblies Sdn Bhd (TCMA) last month signed a letter of intent (LOI) for the latter to provide electro-deposition coating and painting line services, as well as rental and use of certain designated assembly lines, for the Perodua QV-E.
The Edge now reports, citing executives privy to the deal, that Perodua is considering buying Tan Chong’s Serendah plant – located just 3 km away from the former’s Sungai Choh base – for about RM500 million.
“Perodua is leasing a capacity of 30,000 units per year at Tan Chong’s Serendah facility, which has a production capacity of around 40,000 units per year. It is also looking at the possibility of acquiring the Serendah plant,” one of the executives said, adding that the leasing deal is expected to contribute some RM80 million to Tan Chong.
It would appear to be a win-win situation. Perodua is already operating beyond its maximum capacity of 320,000 units annually (its two plants – Perodua Manufacturing Sdn Bhd and Perodua Global Manufacturing Sdn Bhd – combined), while Tan Chong has been facing under-utilisation at its Serendah and Segambut plants, which have a combined capacity of 65,000 units a year, say research analysts.
The Edge writes that according to a November 26 Kenanga Research report, Tan Chong has a 13% production capacity utilisation rate (8,450 units). Only 7,785 Nissans found Malaysian homes last year – TCMA Serendah currently assembles the Serena and Almera while TCMA Segambut makes the X-Trail, as well as non-Nissan vehicles such as the GAC GS3 Emzoom, GAC Emkoo and TQ Wuling Bingo.
The Edge reports that Kenanga Research forecasts a RM185.5 million net loss for Tan Chong in FY2025 and a RM164.3 million net loss in FY2026, while RHB Research forecasts RM166 million and RM107 million respectively. In the first nine months of 2025, the company’s net loss shrunk to RM114.3 million from RM146.11 million in the same period last year, while its revenue increased 3.23% to RM1.62 billion.
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This would make it very easy for tan chong to close shop, should Nissan Japan close forever. One big relief. no need to lelong the assembly plants or write off.
tanchong can quickly abandon nissan sinking ship and pivot to distribute ccp brands GAC and Wuling. why need to close shop.
Jokes on youTanchong itself is in much worst condition than nissan. Nissan won’t going down without Japanese gov putting up a fight
In ASEAN, I think we have seen the fall of continental and JDM cars, such as Chevrolet, Ford, VW, Suzuki, and Nissan, with the rise of Perodua.” (Corrected “falls” to singular “fall,” corrected capitalization, added “and” before Nissan for parallel structure, and clarified the type of cars.
Perodua is now signified by its no.2 rank in ASEAN in 2025 ultra-high production, with 99% coming from the Malaysian market itself, overtaking Honda in ASEAN.
and the underlying reason for perodua rise is the huge malaysian buying power demand, malaysia per-capita buys eight times yes 8x the number of cars compared to indonesia, so this is thanks to which govt and which PM?
Is this huge buying power demand actually huge when that ‘huge’ figure is for cheapo not so global cars?
I will look at it as buyers whom could easily afford ‘better’ cars 5-10 years ago can only afford cheap cars today.
If this goes on…some foreign brand which used to be a household name will be upgraded to premium brand.
as much as i think perodua makes fine cars, they only succeeded because of tongkat
its proton not perodua who received tongkot from gomen in the form of “RnD” grants.
What kind of tongkat that favors them? Which laws that only bends to perodua’s will? You are as much as retarded as ismail sabri as your name suggest
Perodua bezza avg sold near 10k per month, equivalent near rm400 million income dy. Even invested rm800 million on EV flop cannot sell at all also no scare.
Nissan previous “can sell” model like grand livina and 1st gen almera don’t know why stop production or “upgraded” to stupid 3 cylinder turbo + cvt. Sendiri gorek lubang to jump.
dont know the difference between income and profit? 400million income assuming 10% margin thats only 40m annual profit. at this rate it will take 20 years to recover that 800m EV investment
Good Job Perodua. With 95% local content, perodua should be praised for supporting local automotive ecosystem.
Your local automotive ecosystem are just rebadged china parts
maybe need extra capacity to produce EV car…
Next, Perodua buying Proton factories.