KUALA LUMPUR, May 7 (Xinhua) -- Malaysian automobile company Tan Chong Motor will invest 500 million ringgit (126.81 million U.S. dollars) to develop an automotive hub in the northern Perak state, according to its statement released on Monday.

The group expects to commence the project with a total outlay of 100 million ringgit investment which will be channeled towards land acquisition and the construction of a bus and truck plant in phase one, said the statement.

Once completed, the new plant which is located in a 338 acres land in Bagan Datuk, will cater to the production expansion needs of the local and export markets.

Buses produced by the group are currently exported to Singapore, Hong Kong and Myanmar.

Tan Chong Motor also said, it will continue to explore potential markets in the region, including Thailand, Sri Lanka, Vietnam and Indonesia, amongst others.