South East Asian Automotive News

DMIB Bhd, the tire manufacturer, has registered a drop of more than 70% in its OEM sales in the last four months as a result of the drop in new car sales. Exports for the first few months of 1998 have more than doubled to 25% of revenues compared to 10%-15% in the same period a year ago. DMIB will aim to grow exports to more than 30% of revenues by year-end. DMIB held more than 40% of the domestic tire market share last year with RM350m (US$92m) in sales. (May 7^th 1998)

DRB-Hicom Group and EON, the Malaysian national car manufacturers, have asked the Government to extend the 85% loan limit for cars costing RM40,000 (US$10,500) and below to include those priced under RM60,000 (US$15,800). By extending the loan limit and the repayment period from five to seven years, the automakers hope to boost sales of medium range models. (May 22^nd 1998)

Proton plans to double its export volume in 1998 from 27,000 units to 52,000 units. The company expects sales of cars, trucks, motorbikes and spare parts for the export market to exceed RM1bn (US$260m). Last year the group exported cars and spare parts worth RM829m (US$220m). Exports are expected to rise from 10% to 30% of Proton's annual production volume of 230,000 vehicles. (May 7^th 1998)

Proton is acquiring an additional 16.25% equity in Lotus Group International for RM100m (US$26m) from the estate of its former Chairman, the late Tan Sri Yahaya Ahmad. This will raise Proton's stake in Lotus to 63.75%. (May 28^th 1998)