At the end of June, the Board of Directors of Tan Chong Motor Holdings Berhad announced that their wholly-owned subsidiary, TC Trucks Sales Sdn Bhd entered into an Exclusive Distribution Agreement with Xiamen King Long United Automotive Industry Co.
Tan Chong Motor Subsidiary, TC Truck Sales Become Distributor for King Long
The agreement sees TC Trucks Sales appointed as King Long’s sole and exclusive distributor, assembler and after-sales service provider of King Long coaches and buses. The working capital required for the new King Long Business for the first five years of the operation has been estimated at approximately RM 6.5 million which will be funded by the Tan Chong Motor Holdings Berhad from its internal sources.
King Long, who are incorporated in the People’s Republic of China, specialise in the design, production and sale of various buses, minibuses and coaches. After being founded in 1988, King Long has its own research and development and testing sites that have been approved by the Chinese government.
The terms of the agreement see King Long granting TC Truck Sales, the sole and exclusive right to assemble their coach and bus products, to promote, distribute and sell the completely assembled King Long products and to render after-sales service. The initial terms of the agreement shall be for a period of five years and may be extended subject to the parties’ mutual written agreement.
TC Trucks Sales are expecting to start sales of Kings Products by the fourth quarter of 2018.