Geely Auto Group Chairman Li Shufu revealed last year the company’s plans to invest RM32 billion into Malaysia over the next 10 years, in its efforts to make Malaysia its right-hand-drive export hub. Now, we finally have confirmation that the plans will also include an assembly facility for other brands under the Geely group umbrella, to be located at the 16-square-kilometer Automotive High-Tech Valley (AHTV) in Tanjung Malim.
Geely Holding Group senior vice president and Geely International Holdings (Malaysia) CEO, Wei Mei, told Chinese state-owned media China Daily that once completed, AHTV will have an annual production capacity of 500,000 cars, of which half will be exported internationally.
“It will produce vehicles bearing the proton marque as well as Geely’s brands,” the news outlet reported.
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The Automotive High Tech Valley, a joint venture between DRB-Hicom and Geely, is set to become a “landmark project of economic cooperation” between Malaysia and China, the two nations celebrating their 50th anniversary of diplomatic relations this year.
Aside from vehicle production, AHTV will also include research and development as well as testing facilities. The companies are also currently attracting suppliers to the valley, which combined are expected to produce parts for 1 million vehicles by 2035, half of them destined for overseas markets, the report adds.
The development of AHTV will span approximately 10 years, and once completed, the area is set to become one of the largest automotive manufacturing hubs in Southeast Asia. Proton is set to relocate production at its Shah Alam facility to AHTV starting 2026.
Geely has previously earmarked Malaysia as one of its main targets for the company’s global expansion. While a majority of those plans will be on Proton, which Geely holds a 49.9% stake in, the Chinese carmaker has also announced in 2021 that the Lynk & Co brand will eventually make its way into Malaysia too.
The company also restructured its ownership of Proton last year by transferring its shares to an affiliate proxy company, Linkstate Overseas Limited, paving the way for its direct entry into Malaysia. The move will help Geely avoid potential legal issues stemming from the conflict of interests due to its ownership of Proton.
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