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 positioned as a leading automotive manufacturing platform, focusing on high-quality, cost-efficient solutions for global automotive OEMs and Tier-1 suppliers [6] Strategic Importance - The acquisition provides VCI Global with an immediately operational and scalable industrial base to support high-volume production for a leading global automotive OEM expanding in North America [1] - RTCAR Mexico will serve as a core manufacturing and assembly platform for the OEM's North American market entry, initially focusing 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, with a projected compound annual growth rate (CAGR) of 5.4% through 2034, driven by demand for SUVs, hybrids, 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] Operational Readiness - RTCAR Mexico is led by a seasoned management team with extensive experience in global automotive OEMs and Tier-1 suppliers, ensuring compliance with USMCA and optimizing supply chains [2] - The existing Memorandum of Understanding (MOU) is expected to convert into a definitive offtake agreement in January 2026, ensuring guaranteed production volumes and early revenue visibility for VCI Global [4][5] Future Outlook - The first vehicle delivery is anticipated in Q4 2026, marking the beginning of a multi-year growth trajectory for VCI Global in the automotive sector [5] - The acquisition is expected to diversify VCI Global's earnings base toward asset-backed, recurring industrial revenue [5]