VCI Global Signs Binding Term Sheet to Acquire Controlling 51% Stake in RTCAR Mexico, Secures Tier-1 Production Hub for Global Automotive Giant's North American Expansion

Company Overview - VCI Global Limited has entered a legally binding term sheet to acquire a 51% controlling equity interest in RTCAR Comercializadora de Suministros Automotrices, S.A. de C.V. (RTCAR Mexico), enhancing its operational capabilities in the automotive sector [1] - RTCAR Mexico is a leading automotive manufacturing platform focused on delivering high-quality, cost-efficient solutions for global automotive OEMs and Tier-1 suppliers, leveraging strategic North American operations [6] Strategic Importance - The acquisition provides VCI Global with an immediately operational, scalable industrial base to support high-volume production for a leading global automotive OEM expanding its footprint in North America [1] - RTCAR Mexico will serve as a core manufacturing and assembly platform for the OEM's North American market entry, focusing initially on high-demand SUV and hybrid vehicle models [4] Market Context - The North American automotive industry was valued at approximately US$1.23 trillion in 2025 and is projected to grow at a compound annual growth rate (CAGR) of 5.4% through 2034, driven by sustained demand for SUVs, hybrid, and electrified vehicles [3] - Combined motor vehicle production across the United States, Mexico, and Canada reached approximately 16.1 million units in 2024, with Mexico accounting for over 20% of the region's production [4] Leadership and Operations - RTCAR Mexico is led by a seasoned management team with extensive experience across global automotive OEMs and Tier-1 suppliers, ensuring compliance with USMCA and positioning the platform to meet international standards [2] - The existing Memorandum of Understanding (MOU) is expected to convert into a definitive offtake agreement in January 2026, ensuring guaranteed production volumes and providing early revenue visibility [4] Future Outlook - The acquisition is expected to accelerate VCI Global's transition into industrial-scale EV and SUV manufacturing, diversifying its earnings base toward asset-backed, recurring industrial revenue [5] - The first vehicle delivery is anticipated in Q4 2026, marking the beginning of a multi-year growth trajectory for the company [5]