Warisan in tie-up with China firm to distribute EVs

PETALING JAYA: Warisan TC Holdings Bhd (WTCH) has entered into a distribution and service agreement with GAC AION New Energy Automobile Company Ltd (GAC AION) of China to be the sole and exclusive distributor of electric vehicles (EVs) in Malaysia.

The deal sees WTCH’s wholly owned subsidiary, WTC Automotif (M) Sdn Bhd (WTCA), being appointed by GAC AION as the sole and exclusive distributor to import, distribute, sell and offer after-sale services as well as spare parts and accessories for the GAC AION project in Malaysia.

In a filing with Bursa Malaysia, WTCH noted the GAC AION deal offers it to broaden product offerings to include EVs in order to serve a more diverse clientele.

The project also aligns with WTCH Group’s objective to drive towards economy, environmental, social and governance (EESG) for the long-term sustainable growth of its business, as well as broaden the group’s earnings base.

“As WTCH Group is involved in the assembly, distribution and sale of commercial and passenger vehicles, it will be able to enjoy the benefits and advantages of the synergistic benefits derived from economies of scale with the implementation of the GAC AION project,” it added.

The agreement will take effect for a term of three years and may be renewed by either party by serving a three-month notice prior to the expiration.

The agreement will, however, need finance for working capital purposes and this will have an effect on WTCH Group’s gearing for the fiscal year that ends on Dec 31, 2024.

GAC AION produces EVs and provides new energy goods and services.

Its main activities in China are research and development, EV production, sales, and component and parts services.

It offers large to medium-sized passenger vehicles, auto-parts and accessories and service.

Since 2017, the company has launched a series of EV models covering a sedan, sport utility vehicle and Super Sports car.

Last year, it produced and sold more than 480,000 units of battery EVs (BEV) and was ranked top-three in the BEV segment in China.

GAC AION has set up manufacturing plants in Guangzhou, China and Thailand.

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