The Board of Directors of Tan Chong Motor Holdings Berhad (“TCMH”) wishes to announce that TCIE Vietnam Pte Ltd (“TCIEV”), an indirect wholly-owned subsidiary of TCMH, had received from Nissan Motor Co., Ltd. (“NML”) letters dated 31 March 2020 and 2 June 2020 on the non-renewal of the Distribution Agreement dated 20 September 2012 executed between TCIEV and NML (“Distribution Agreement”) for the Nissan Sunny and X-Trail models (“Nissan CKD Models”) in Vietnam. Following this, TCIEV’s appointment as the exclusive distributor and after-sales service provider of the Nissan CKD Models under the Distribution Agreement will expire on 19 September 2020.

Notwithstanding the above, the Technical Assistance Agreement dated 30 May 2012 executed between TCIEV and NML for the rendering of technical assistance to TCIEV by NML for the assembly of the Nissan CKD Models will continue to remain in force.  TCIEV and NML are in open dialogue on the continuity and the alternative distribution channels for the Nissan CKD Models in Vietnam.

The expiry of the Distribution Agreement has no significant financial and operational impact on the Group for the current financial year.

This announcement is dated 5 August 2020.