Renault and its local partner Tan Chong Motors have announced they will start production of the Fluence sedan in Malaysia, confirming the French brand’s offensive in the fast expanding South East Asian market.

Renault Group’s Chairman of the Asia-Pacific Region, Gilles Normand, and Tan Chong Euro CEO, Kuan, signed an agreement to build the Fluence in Malaysia. The deal will allow Renault to build its presence not only in Malaysia, but also across the whole of South-East Asia.

Malaysia is the third biggest regional economy after Thailand and Indonesia, with economic growth running at over 5 percent on average over the past thirty years and living standards that are among the highest in South-East Asia. In 2013, the country’s automotive market expanded by more than 5 percent, with sales reaching 645,000 vehicles.

To support growth, the French carmaker also said it is expanding its distribution network in the country, aiming to have 25 dealers by 2016. Renault currently sells the Mégane RS, Clio RS, Koleos and Fluence in Malaysia. The carmaker plans to add other models in the future.

“We are delighted to be strengthening our partnership with Tan Chong Motors, partner to Nissan, with which Renault has been working for over ten years. This agreement marks the start of a new stage in the development of Renault in Malaysia where our ambition is to establish Renault within the top 3 of generalist European car makers by 2018,” said Gilles Normand.

By Dan Mihalascu

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