KUALA LUMPUR (Oct 17): Auto parts maker EP Manufacturing Bhd is set to make its debut in four-wheel electric vehicle (EV) manufacturing via a collaboration with US-based EV player Saean Group Inc.

The group said it has inked an agreement with Saean to establish a strategic alliance to mass-produce electric cars for the Malaysian and Southeast Asian markets, with an initial targeted volume of 20,000 units per annum.

“Both parties will also explore an expansion programme to cover export opportunities,” EP Manufacturing said in a statement on Monday (Oct 17), adding that the collaboration may also look into manufacturing heavy industry EVs for the construction sector.

The group said Saean would offer technical and design know-how for the EVs to be jointly-developed under the partnership, while EP Manufacturing would provide support in terms of resources and market information necessary for the development of EVs, and actively strive for mass production, supply and sales.

“The group will leverage [upon] its long-built experience in supplying major automobile parts to several original equipment manufacturers (OEM),” it noted.

Commenting on the partnership, EP Manufacturing executive chairman Hamidon Abdullah said the alliance with Saean would allow the group to climb up the value chain and further harness its true potential after being an automotive OEM parts manufacturer.

“We are set to be one of Malaysia’s first homegrown EV carmakers once this joint venture with Saean is powered on. At this point, many EVs are still out of reach for most consumers, as the entry prices are high.

“We aim that, through this collaboration, we can invoke more local sourcing to support our local assembly of the vehicles. Hopefully, the savings thereof can translate to cheaper entry and running costs,” he added.

Hamidon said EP Manufacturing is confident that with Saean’s expertise in EV concept development and hardware technologies, they could accelerate commercial roll-out in the next few years.

“At the same time, EP Manufacturing will strive to achieve technical knowledge transfer for the benefit of Malaysians in the EV landscape,” he added.

This foray into electric cars follows EP Manufacturing’s diversification into the manufacturing of electric bikes via its partnership with China-based Sharkgulf Technologies Group Ltd.

Shares in EP Manufacturing closed one sen or 0.88% higher at RM1.14 on Monday (Oct 17), valuing the group at RM249.41 million.