China Automotive signs MOU with KYB-UMW to advance manufacturing

China Automotive (CAAS) announced that its subsidiary, Hubei Henglong Automotive Systems, has signed a strategic cooperation memorandum of understanding with KYB-UMW in Malaysia. KYB-UMW is a local supplier of automotive chassis systems. It is a joint venture between KYB and UMW, a core Malaysian automotive enterprise. UMW is a Malaysian conglomerate with core businesses covering automobiles, engineering, energy and other fields. It holds a 38% stake in Perodua, Malaysia’s largest car manufacturer, and it has also established a joint venture with Toyota in Malaysia, UMW Toyota Motor, providing significant influence in the local automotive industry chain. According to the MoU, the two parties will jointly produce key automotive components such as electric power steering systems and mechanical steering gears locally. This cooperation represents an overseas extension of Hubei Henglong’s advanced technological capabilities and is also an important step to achieve localized manufacturing and regionalized services. The advanced technology brought by Hubei Henglong is expected to enhance KYB-UMW’s competitiveness as an automotive systems supplier. To support this strategic partnership, KYB-UMW’s new advanced manufacturing plant under construction is expected to be completed in December and operational in 2026. This plant will be dedicated to producing steering system products, including those using Hubei Henglong technology. Through cooperation with KYB-UMW, Hubei Henglong will introduce advanced Chinese steering technology to Malaysia, and work with local partners to build a future-oriented smart manufacturing ecosystem. This MoU marks a shift in Sino-Malaysian manufacturing cooperation from “supply chain reciprocity” to “value chain co-creation”.