Nissan Reveals Malaysia' Best Seller for 2010

03 March 2011 - Edaran Tan Chong Motor Sdn Bhd (ETCM), the sole distributor and assembler of Nissan vehicles in Malaysia, is upbeat about growth prospects following the implementation of its long-term business plan. "Despite intense competition in the market place, we've extended our competitive reach by successfully filling the gap in the D-segment (large family car segment) and expanding our regional presence, especially in emerging markets.

ETCM adds that the all-new Nissan Teana, launched in Malaysia in November last year, is expected to win a sizeable portion of the local D-segment sales in 2011. Already, the Teana accounted for 28 percent of ETCM’s sales in January this year.

ETCM promises that 2011 will see a record number of new Nissan model launches, which should further drive up sales despite the worry that the total industry volume, at an all-time high of 605,156 units in 2010, may have little room for growth this year.

"We are well positioned for growth this year," ETCM executive director Datuk Dr Ang Bon Beng told Bernama. He said 2010 was a record year for company, registering RM3.5 billion in revenue and RM322.7 million in pre-tax profit with the Nissan business stream being a key driver.

He said sales in the second half of 2010 were slower than the first six months, reflecting the complexity of transitioning from a higher commercial vehicle sales mix to stronger passenger models.

"Our overall performance shows a disciplined approach to executing our long-term business plans even as total industry volume peaked," Ang said. He said 2011 would be a year of record new model introductions for ETCM, due in large part to a rigorous marketplace and a more discerning consumer.

"Based on the booking backlog in the fourth quarter 2010 and visible showroom traffic, ETCM remains well positioned to capitalise on both local and regional economic trends. "As total industry volume matures in Malaysia but grows from a low base in Indochina, the prospect for sustainable expansion is possible if we remain committed and careful," he said.

As part of the company’s long-term business plan, ETCM will expand more into developing markets, including Vietnam, Cambodia and Laos, though they are not expected to contribute beyond 10 percent of ETCM’s total sales for 2011.

He said Vietnam, Cambodia and Laos taken together should contribute less than 10 percent to the company's volume in 2011. "We hope to be marginally profitable by year end and ramp up the volume once our Danang left-hand-drive plant is ready in 2012," he added.

The all-new Nissan Teana was launched on Nov 23 last year and the bulk of its sales were recognised at the start of 2011. On challenges, Ang said there were a lot of risks that foreign marques seemed not to be pricing in.

"Malaysia is a small market and there is a chance of domestic demand overheating and problem with inflation. But everyone is drawing a bullish picture, and when everyone is defending the same argument, it's a perfect scenario for negative surprises. "We are prepared for change!" he said confidently.

Source: Bernama

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