Tan Chong bets on innovative EVs to navigate shifting market
The group plans to deepen its partnerships with global brands like Nissan and Renault to develop and distribute EV technologies.
PETALING JAYA: Tan Chong Motor Holdings Bhd (TCMH) is poised to navigate the evolving global market with a forward-looking strategy rooted in innovation, sustainability, and regional expansion.
As the automotive industry undergoes a transformative shift, with a focus on electric vehicles (EVs), the group's 2024 annual report highlights the rising prominence of EVs in Malaysia and globally – a trend it is keen to capitalise on.
Moving forward, TCMH aims to bolster its EV portfolio by introducing innovative models tailored to both passenger and commercial segments, in alignment with Malaysia's push for electrification.
The group also plans to deepen its partnerships with global brands like Nissan and Renault to develop and distribute EV technologies.
Therefore, its assembly plants in Malaysia and Vietnam will play a pivotal role in manufacturing EVs that meet stringent quality and environmental standards.
By leveraging its Serendah and Da Nang facilities, TCMH intends to scale up production to meet growing demand in South-East Asia, particularly in markets like Thailand, Myanmar, and Cambodia.
TCMH is also exploring mobility-as-a-service solutions, such as car subscription models, to cater to changing consumer preferences. This initiative, already part of its business portfolio, is expected to expand, offering flexible and sustainable transport options to urban consumers across its operational regions.
With a presence in Malaysia, Vietnam, Cambodia, Laos, Myanmar, Thailand, and Taiwan, TCMH pointed out that its strategic roadmap includes further expansion into Indo-China and other emerging markets.
This is evidenced by the group's establishment of a regional operating headquarters in Thailand and assembly plants in Vietnam and Myanmar.
In the more immediate term, TCMH plans to strengthen its sales and distribution networks in these markets, focusing on both completely built-up (CBU) and locally assembled vehicles.
The group said its appointment as the sole distributor for Nissan vehicles in Myanmar, along with its investments in after-sales service centres such as the E-Garage in Cambodia, will be scaled up to enhance customer experience and brand loyalty.
TCMH's robust strategies could prove valuable going forward, as the group experienced a challenging 2024 – reporting a 17.8% decline in revenue to RM2.08bil and a net loss after tax of RM214.2mil.
Reiterating its robust financial foundation, it reported total equity of RM2.52bil and cash reserves of RM545.5mil, while highlighting its commitment to delivering value, as shown by the interim dividend of one sen per share paid in June 2024.
TCMH's focus on assessing financial performance in the new fiscal year suggests a cautiously optimistic approach to rewarding investors. It added that the proposed renewal of authority for share buy-backs and recurrent related-party transactions, as outlined in the 2024 AGM notice, reflects its strategy to enhance shareholder value while maintaining operational flexibility.
'Improving operational efficiency remains a top priority for the group. We streamline processes at all our plants to lower production costs, while maintaining high quality standards.
'As we continue to optimise our supply chain to ensure timely deliveries and cost-effectiveness, we utilise digital tools to enhance inventory management and dealership operations to increase overall efficiency,' said TCMH president Datuk Tan Heng Chew in the report.
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