ETG to expand Malaysia factory capacity to 15,000 units monthly
Paul Tan, 8 Oct '26
ETG, formerly known as Eurotech Wheel Distribution, the Malaysian importer and distributor for KTM, Husqvarna, GasGas and Zontes, is expanding its operations and production capacity in the country's two-wheeler market.
The company has rebranded as ETG, which stands for Eurotech Group, as part of its business expansion. The group began operations in Malaysia in 2012 with the establishment of South-East Asia's first KTM CKD assembly plant. By 2016, the facility was handling completely knocked-down (CKD) production.
Eurotech introduced Zontes to Malaysia in 2019, initially with the Zontes 310 series, followed by the 368 series of scooters. Husqvarna entered the Malaysian market through the company in 2021, while GasGas off-road two-wheelers followed in 2022. In the same year, ETG established the Malaysian KTM Riders' Academy Off-road, staffed by certified instructors.
ETG currently produces about 4,000 KTM two-wheelers and Zontes scooters per month at its facility in Jitra, Kedah. The company plans to expand its existing factory and add a new assembly line, increasing production capacity to approximately 15,000 units per month. The upgraded facility is expected to become operational in early 2027.
The planned increase in production is intended to meet demand for ETG's two-wheeler portfolio, particularly the Zontes 368 series, which includes the 368G, 368E, 368K and 368D. The KTM 390 range is also generating demand in Malaysia and is contributing to the company's decision to increase local assembly capacity.
The expansion comes alongside plans to broaden the product portfolio. ETG has confirmed that several new Zontes models are in the pipeline, including two-wheelers from the 552 and 703 series. Increased local production capacity will allow the company to respond to domestic demand while providing greater flexibility as KTM, Zontes, Husqvarna and GasGas expand their presence in the region.
ETG is also planning to expand its dealer and service network. Over the next two years, the company aims to have 73 dealers and 53 service centres across Malaysia, supported by the recruitment of more than 100 additional technical specialists.
To improve communication between the company and its dealer network, ETG is establishing the ETG Dealer Management System. The system is designed to target a turnaround time of 60 minutes for commonly required spare parts and 24 hours for less common faulty items, allowing dealers to respond more quickly to customer complaints and service requirements.
The company will also begin rolling out its Experience showrooms, with the initial expansion covering the northern, central and southern regions of Malaysia.
Goi Seong Keng, ETG Head of Marketing and Customer Experience, said the company had continued to expand its capabilities, brand portfolio and relationships with dealers and riders.
"ETG has never stood still. Over the years, we have continued to broaden our capabilities, strengthen our brand portfolio and build deeper relationships with our dealers and riders," Goi said.
With the planned factory expansion, additional Zontes models, an expanded dealer and service network, new technical personnel and dedicated Experience showrooms, ETG plans to expand its operations in Malaysia's two-wheeler market from 2027.