KUALA LUMPUR: Pecca Group Bhd has signed a memorandum of understanding (MoU) with Malaysia Automotive Robotics and IoT Institute (MARii) for market expansion of products as well as collaboration in electric vehicles (EVs) parts and components technology.
In a statement Wednesday, Pecca said the MoU would see MARii developing new opportunities for Pecca in its pursuit to expand its capabilities to offer more competitive products to global brands.
This includes the enhancement of operational efficiency of Pecca’s business process by integrating Industry 4.0 systems, which will better prepare and fully equip the group to meet all the requirements of new customers.
In addition, both parties agree to explore the development of automotive manufacturing capabilities for an expanded variety of vehicle parts – including EVs, its localization and after sales support ecosystem.
Pecca group managing director Datuk Teoh Hwa Cheng said: “The full duty exemptions for EVs as proposed in the recently tabled Budget 2022 will certainly broaden the market for EVs and EV-specific components in the country.”
“Thus, the collaboration with MARii starting today will mark an exciting journey ahead for the group to start manufacturing new products related to the EV segment to capture fresh opportunities in the automotive and mobility industry,” he said.
He added that in the longer term, the group will also eventually look at venturing into manufacturing EVs and partnering with overseas EV brands for localization.
“Through this MoU, Pecca will be able to transform itself into a Tier 1 supplier which markets and sells its current and new products to OEMs with access to a larger client base. This is expected to contribute positively to the overall future earnings as well as the earnings per share of the group,” Teoh said.