Business Development Asia LLC
South East Asian Automotive News
ISSUE 5, FEBRUARY 1998
MALAYSIA
Autoair Holdings Bhd, an automotive air-conditioning components manufacturer, has announced a 10% increase in local sales for the last six months of 1997. The company, listed on the KLSE in February 1998, intends to expand into foreign markets, notably those of its ASEAN neighbors. The company has escaped the decrease in new car demand relatively unscathed because it caters primarily to the replacement market rather than the OEM market. (February 5th 1998) Auto Dunia Sdn Bhd, the distributor of Audi vehicles in Malaysia, has recently agreed to assemble Audi vehicles in Malaysia. The agreement, between Auto Dunia and Audi AG, will continue until the year 2000. This will make Audi more competitive in the Malaysian market, as the group will be able to avoid paying expensive CBU tariffs on imported vehicles. (January 26th 1998) The Malaysian Motor Traders Association has announced that it expects to see a 60% decrease in new car sales this year. Total sales are projected to fall to 160,000 units from 400,000 units in 1997. The drop can be attributed to the decline of both the ringgit and the stock market and the resulting lack of available financing. (January 23rd 1998) General Motors Corp. has announced that it is interested in acquiring an equity stake in Proton, the Malaysian national car maker. GM described Proton's production rate and capacity as a good match to GM's interests. Any such relationship with GM would offer Proton a valuable injection of both equity and technology. (February 11th 1998) Quasar Carriage Sdn Bhd will launch Industri Otomotif Komersil's (INOKOM) one-ton Permas vans next month. INOKOM produces vans and trucks of one to five-ton weight using technology from France's Renault and South Korea's Hyundai. Quasar Carriage still expects to realize revenues of RM60m to RM70m (US$15m to US$18m) in 1997. (January 16th 1998)
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