GURUN, Jan 26 — Malaysian owned Go Automobile Manufacturing Sdn Bhd (GoAuto), in partnership with Great Wall Motor Co Ltd (GWM) of China, is spending RM250 million to build a second factory to produce energy-efficient vehicles (EEVs).

GoAuto Chief Executive Officer Ahmad Azam Sulaiman said the new plant, scheduled for completion in the third quarter of next year, would enable the company to increase the production of EEVs to 50,000 units per year from 25,000 at present.

He said the production increase enable the company to meet the export demand by 60 per cent and domestic demand by 40 per cent.

The final phase of GoAuto's RM2 billion five-year investment plan with GWM in 2019 will help boost the production capacity of EEVs to 100,000 units, he said at the launch of the construction of the new plant at the Gurun Industrial Park today.

The ceremony was officiated by Kedah Menteri Besar Datuk Seri Mukhriz Mahathir who also launched GWM M4 light SUV/crossover.

Ahmad Azam said since bookings were opened in July, the company had received 2,500 pre-orders of various models.

On the export market, he said 60 per cent of the vehicles would be sold abroad, especially to Asean countries, while 40 per cent for the local market.

"GoAuto made a breakthrough in overseas markets in the third quarter of last year by exporting 50 vehicles to Thailand and Cambodia.

"Our export target this year is 6,000 units before reaching 51,000 units in 2019. We plan to penetrate all Asean countries this year," he said.

Apart from producing GWM models, GoAuto's plant in Gurun also manufactures Haval models for the local and regional markets.

To offset the weakening of the ringgit, Ahmad Azam said in early January, GoAuto switched its business transactions with GWM from the US dollar to Chinese renminbi to maintain its competitive edge.

GoAuto was the first company awarded the EEV manufacturing licence by the Ministry of International Trade and Industry under National Automotive Policy in 2014.

GWM, which is listed in Hong Kong and China, has 30,000 employees and manufactures and sells pick-up trucks and SUVs in China under Haval and Great Wall brand names.

With a production capacity of two million units, GWM, the eight biggest vehicle manufacturer in China sold 730,772 units of vehicles last year. — Bernama