South East Asian Automotive News

MALAYSIA

DRB-Hicom Group has identified nine new markets to which it will export two products: Malaysian Truck & Bus Sdn Bhd (MTB) trucks and Motosikal Dan Enjin Nasional Sdn Bhd (Modenas) motorcycles.  Close cooperation between MTB and Modenas, coupled with the competitiveness of the products, may enable DRB-Hicom Export Corp Sdn Bhd (DHEC), to achieve its export target of 530 trucks and 10,000 motorcycles for 1998/1999, valued at RM62m (US$15.5m).  DHEC has signed agreements with six distributors in Cyprus, Argentina, Malta, Mauritius, Brunei and Singapore.  (July 3^rd 1998) 

EON Motor Ria Sdn Bhd, a subsidiary of EON, sold 88 cars, worth RM3.2m (US$800,000), during its two day auto fair.  The company, which specializes in the sale of refurbished and used Proton cars, reported sales of 1,058 units, worth RM33.2m (US$8.3m) from auto fairs, since March 13, 1998.  (August 5^th 1998) 

Federal Auto Cars Sdn Bhd (FAC), the sole importer and distributor of Volvo cars in Malaysia, expects sales to drop 80% this year.  FAC sold 2,237 Volvos last year and is hoping to sell 1,000 this year.  In an attempt to cut costs, the company will reduce staff size.  FAC will also delay the introduction of new Volvo models.  (June 19^th 1998) 

Mintye Industries Bhd, a Malacca-based auto parts manufacturer, is bidding for contracts from Proton and Malaysia Truck and Bus Sdn Bhd to expand its original equipment manufacturing (OEM) client base.    Mintye is well established in the replacement market and supplies to a network of 1,200 dealers nationwide.  The group also exports to some 40 to 50 countries worldwide.  (June 24^th 1998) 

The National Economic Action Council (NEAC) announced the approval of its plan to increase lending for car buyers and extend tax exemptions for the local automotive sector.  The plan recommends a maximum credit of 85% of the car price, compared with the current 70%, and an extended repayment period of seven years, compared to the current five-year limit. (July 24^th 1998) 

Proton is engaged in negotiations with French carmaker Peugeot, over the assembly of French-designed vehicles in Malaysia.  Proton plans to begin producing the Citroen Saxo early next year and a Hicom facility is already assembling Citroen AX hatchbacks, sold as the Tiara in Malaysia.  Peugeot has plans to expand its presence in the Malaysian market.  (June 16^th 1998) 

Proton and Petronas, the Malaysian national carmaker and oil company respectively, are forming a JV to maximize Malaysia’s capability in automotive technology.  The two companies agreed to establish Advanced Engine Research Sdn Bhd (AER), with a paid-up capital of RM2m (US$500,000.)  Proton and Petronas will hold equal stakes in the JV.  (July 16^th 1998) 

Sapura Motors Bhd, the Malaysian car component manufacturer, is looking to develop its business in other sectors due to the unstable auto market.  The company has targeted the oil and gas industry, the export market and hopes to enter into the petrochemicals sector.  Sapura continues its production and development of auto parts for its two main customers, Proton and Perodua. (July 21^st 1998) 

UMW Holdings Bhd, which achieved record profits and turnover in 1997, has been hit badly by the economic crisis.  Demand for non-national cars has dropped 70% and the group has reduced its production from 50,000 units to 7,000 units.  UMW is cutting costs by liquidating investments worth RM800m (US$200m).  (June 26^th 1998) 

UMW Toyota Motor Sdn Bhd has introduced the Toyota Unser, a multi-purpose vehicle (MPV).  The Unser, which sells for RM74,000 (US$18,500), is being marketed as a family car.  UMW has invested over RM16m (US$4m) in capital, equipment and development for the Unser and expects to sell 600 units in 1998.  (July 2^nd 1998)