DRB-Hicom to invest up to RM15m for Tata Motor local assembly

SHAH ALAM: DRB-Hicom Commercial Vehicles Sdn Bhd (DHCV) is investing RM10 million to RM15 million on a facility in Pekan for the local assembly of Tata Motors commercial vehicles.
DHCV acting COO Mohd Syahrul Yusuf said the facility will be part of the DRB-HIicom Automotive Complex in Pekan and will be used for the local assembly of the Tata vehicles, starting with light and medium commercial vehicles.
It aims to start CKD operations at the end of 2015, with the Tata Ultra.
DRB-Hicom Bhd group managing director Tan Sri Mohd Khamil Jamil said the collaboration with Tata Motor Ltd (Tata Motors) will enable it to build and deliver vehicles through its completely knocked down (CKD) programme that will pave the way for a partnership that offers synergies.
He said it will also promote the complex in Pekan as a premium automotive manufacturing plant for the production of light, medium, heavy commercial vehicles and buses.
The investment is in addition to another RM10 million to be injected into DHCV's operation, including new sales branch, distribution and after sales related activities.
Yesterday, the group launched two new commercial vehicles by Tata Motors, marking the revival of the Tata brand in Malaysia.
The two new commercial vehicles are the Tata Xenon Pick-up and Tata Prima Prime Mover.
To date, there are 17 bookings for the Prima Prime Mover which comes in two configurations namely 4x2 and 6x4 while bookings for the Xenon are not open yet.
"The indicative pricing for the Prima Prime Mover 4x2 is RM270,000 and the 6x4 is RM320,000 while the six variants of the Xenon ranges from RM60,000 to RM80,000," Syahrul told reporters at the launch yesterday.
He said it will announce the official prices for the Xenon early next month.
DHCV also appointed seven dealers yesterday with a target of 21 dealers over the next two years. It also has a 3S centre in Selayang.
Tata Motors executive director for commercial vehicles Ravindra Pisharody said the Malaysian market and the Asean region is a key area of focus for the growth plans of TML International Business.
"We also have plans to introduce more products from our vast portfolio in the coming months as we expand our presence in this market," he said.
Commenting on the revised Budget 2015, Khamil said the group is supportive of the revision and will prepare for the impact of the global economic situation.
"We now have to relook how it (the revised budget) will affect our group per se and will have to adjust to adapt to the circumstances.
"This is normal, when there are revised budgets even in a company, there will be certain projects and expenses that will be deferred. It's not a total cancelling of the project but how you spread out the amount of money you have budgeted over a few phases so that it will ease the economic uncertainties," he said.
Meanwhile, the group is also looking into the effect of the weakening ringgit.
"We have many relationships with foreign OEMs and we would have to review and look into how we can adjust our position as to what steps we can take to minimise the impact of the weakening ringgit."
He said the group trades in several currencies including the US dollar, Euro and Japanese Yen.