Tan Chong Motor sole distributor of King Long buses

PETALING JAYA: Tan Chong Motor Holdings Bhd has secured the exclusive rights to distribute King Long coaches and buses in Malaysia for a period of five years.
The working capital for the new business is estimated at RM6.5 million, which will be internally funded by the group.
Tan Chong said in a filing with the stock exchange, its wholly owned subsidiary TC Trucks Sales Sdn Bhd (TCTS) had on June 20 entered into an exclusive distributorship agreement with China’s Xiamen King Long United Automotive Industry Co Ltd for the partnership.
TCTS has been appointed as King Long’s sole and exclusive distributor, assembler and after-sales service provider (including the sale and distribution of spare parts) of King Long coaches and buses, in both completely assembled form and in its bare chassis form, in Malaysia.
TCTS is expected to start sales of King Long products in the fourth quarter of 2018 and to contribute positively towards the group’s earnings in the long-term.
Worth noting is that another wholly owned subsidiary of Tan Chong – TC Motor Vietnam Co Ltd was appointed as King Long’s sole and exclusive distributor, assembler and after-sales service provider of the XMQ6829Y King Long coach model in Vietnam.    
Tan Chong said King Long is familiar with the Malaysian sales and after sales regulations and market situation.
“They have gained the experience via their participation in local tender through their previous distributor in Malaysia whereby they have been able to obtain and comply with the strict tender requirements.”
Tan Chong’s share price edged up 2 sen or 1.1% to close at RM1.84 today on 12,000 shares done.