KUALA LUMPUR: Tan Chong Motor Holdings Bhd is cautiously optimistic of growth prospects in the Asean region on the back of robust demand for new vehicles and the global economic recovery powered by vaccination programmes.
In the company’s latest annual report released last Friday, president Datuk Tan Heng Chew said regional expansions had helped the group mitigate its reliance on a single market as business recovery rates varied from market to market, as shown during this pandemic.
"The group remains committed to further strengthening its regional footholds in Vietnam, Myanmar, Laos, Cambodia and Thailand,” he said, adding that the financial position and fundamentals of the group remained strong.
Tan said the total industry volume (TIV) of the country’s automotive sector was expected to rebound in 2021, supported by the various economic stimulus packages from the government.
Earlier this year, the Malaysia Automotive Association announced that the TIV was anticipated to come in at 8% higher year-on-year at 570,000 units from 529,434 units in 2020.
This is taking into account the sales tax exemption for passenger vehicles, which has now been extended to June 30, 2021, and the low hire purchase loan interest rates which will assist to spur automobile sales.
"The management will also keep a close tab on the developments to review and adjust our plans accordingly.
"The pandemic has also catalysed the group towards accelerating digital technology adoption and changed the way of doing things - focusing more on online platforms and virtual processes,” he said.
Tan noted that the roll-out of online applications such as Drive On allowed the group to have better connectivity with customers and real-time and worry-free solutions for vehicle maintenance.
According to him, the group continues to adapt to new norms and aims to improve on its digital technology application and capability to drive business operations effectively despite disruptions caused by the pandemic.