Pecca Group Bhd executive director Hugo Teoh (left) and Shanghai Launch Automotive Technology Co., Ltd chairman Wang Xun (right).
KUALA LUMPUR: Upholstery manufacturer Pecca Group Bhd
(Pecca) has entered into an exclusive collaboration with Chinese automotive technology provider Shanghai Launch Automotive Technology Co Ltd (Shanghai Launch) to spearhead the development of innovative automotive solutions in Malaysia.
The two companies signed a framework agreement for consultancy services that designated Pecca’s subsidiary, Pecca Leather Sdn Bhd, as the sole and exclusive sales and marketing partner and consultant for Shanghai Launch in Malaysia.
The strategic alliance leverages Pecca’s industry experience and network with major automotive players.
Pecca chief executive officer Foo Ken Nee said the collaboration presents an opportunity for the company to embark on an exciting new journey, as Pecca has been a Tier-2 leather upholstery supplier for the past 25 years.
"Through this partnership, we have the opportunity to move up the value chain and advance technology in automotive design while also exploring the customisation of local content.
"Following this, we are also planning to meet with our original equipment manufacturer (OEM) partners to ensure this partnership maintains a strong flow and flexibility, enabling us to achieve our objectives in the fastest and most efficient manner,” he told reporters during a press conference after the signing ceremony here today.
Pecca, supported by its manufacturing expertise and comprehensive after-sales service, will provide consulting services to Shanghai Launch to navigate the Malaysian market.
"The scope of services includes leveraging Pecca’s deep understanding of local consumer preferences, regulatory requirements, and industry trends while combining strengths with Shanghai Launch to secure end customers in automotive design, development, and export,” Pecca said.
Ultimately, this partnership will facilitate technology and knowledge transfer to the local Malaysian workforce in the automotive industry.
Meanwhile, Foo said the company aims to become a larger contributor to Malaysia’s automotive sector and expand beyond its achievements over the past 25 years.
He said that as part of this growth, Pecca is looking to move up the supply chain and venture into seat assembly and design.
Regarding the company’s performance outlook for 2025, Foo said Pecca is targeting a new record financial year, supported largely by its automotive segment, followed by its aviation segment.
"We are also focused on improving operational efficiency. In terms of overall sales, we will explore new markets, as well as strengthen its Indonesian operations following Pecca’s acquisition of a company there a few years ago,” he said.
Meanwhile, Shanghai Launch chairman Wang Xun said this marks the company’s first collaboration with a Malaysian company, though it has previously worked with car manufacturers in Southeast Asia, particularly in Vietnam, for the past six years.
He said that over these six years, Shanghai Launch has successfully empowered a Vietnamese automaker, transforming it from a small local brand into Vietnam’s top EV manufacturer.
"We look forward to replicating this success scenario in Malaysia through our cooperation with Pecca.
"I believe Malaysia will see a significant rise in electric vehicles (EVs), as local Malaysian brands will be involved in the EV segment. This partnership between Pecca and Shanghai Launch will accelerate the transition of Malaysia’s automotive industry,” he said.
Shanghai Launch is a leading automotive design company in China that specialises in automotive research and development. - Bernama
