Malaysian automotive firm Terus Maju Services (TMS) has entered into a memorandum of understanding (MoU) with Swedish commercial vehicle manufacturer Scania to assemble Scania buses in Malaysia.
This agreement is a part of TMS' shift from a bus transportation and repair service provider to a bus manufacturing company.
TMS executive director Loo Kiat Keong was quoted by thestar.com as saying that the services currently provided by TMS range from repairing of coach bodies, painting, engine overhaul, air-conditioning maintenance, tyre care and cushion repairs to name a few, so it made sense for the company to venture into becoming bus manufacturing.
"We have been working with Scania for quite sometime now and they have been highly supportive of us, and their buses are well-known for their safety," Kiat added.
As a part of this deal, TMS will assemble three ranges of Scania chassis, including K250, K360 and K410.
For this, TMS has installed an assembly line at its Kajang headquarters with an investment of MYR6m ($1.9m). The company expects to assemble 25 units annually for the local market at this plant.
It will also equip the buses with its own internal fit and finish products such as the seats and air conditioning units.
Scania South-East Asia sales director Johan Ekberg was quoted by the news website as saying: "We put a lot of focus on our products which have been optimised specifically to the customer's requirements, and from now till November 2014, TMS will be producing 25 units of our Scania bus chassis valued at RM560,000 per unit."
The agreement expires in November 2014.
Besides this, TMS has also unveiled its first locally assembled Scania bus, P-13, during the signing of MoU.
