BMW plans to make Malaysia an export hub for Asean

KUALA LUMPUR: BMW Group Malaysia, which expects another record breaking sales this year, aims to make Malaysia an export hub for the Asean region, in particular for energy efficient vehicles (EEVs).
"We want to bring as many locally assembled EEVs as we can to this market and potentially create an export hub in Malaysia for the countries within the Asean region," its managing director and CEO Alan Harris (pix) told a press conference here yesterday.
He said the group has been in an active discussion with the government on its expansion plans in Malaysia since the announcement of the National Automotive Policy (NAP) early last year.
"The negotiation is not yet finalised with the government, but we're hopeful that the proposal will be viewed positively and we'll continue with our investment strategy in the country," he noted, but declined to give details on the proposal with the government.
Harris added that the group expects to receive closure from the government within the first quarter of the year in order to make Malaysia a hub for the assembly and manufacture of advanced automotive technology.
"If the government accepts our proposal, we could export to Thailand, Vietnam and countries within Southeast Asia," he said.
BMW Group Malaysia reported an increase of 13.4% in sales last year to a total of 9,046 vehicles in 2014 against 7,974 recorded in 2013, attributable to strong demand for the variants of the BMW 3 Series and BMW 5 Series, coupled with the introduction of new models.
Of the 9,046 vehicles sold, 7,808 are from BMW, while 655 and 583 are from MINI and BMW Motorrad respectively.
Despite increased competition within the luxury car segment, Harris expects the group would be able to register growth in 2015, but with a more challenging operating environment in the first quarter due to the goods and services tax (GST).
"We've some significant product introductions during the year, therefore we'll still see growth in 2015, it should be another record year," he said.
Harris added though it is still unclear whether there will be a drop in car prices after the GST implementation, he assured that car prices will not be more expensive.
He explained that car prices will also be determined by other factors, such as currency fluctuations.
BMW Group Malaysia is targeting to launch two models this year, namely the 2 Series and 3 Series Active Tourer.
Currently it operates two production lines at the Kulim plant, which runs at a production capacity of 70%.
On another note, Harris said he is supportive of the suggestion to abolish approved permits (APs), which are used by importers to import reconditioned luxury cars to sell at slightly lower prices than locally assembled ones.
"We received no response from the government on what they intend to do, but an open AP is not necessary desirable because it allows people to bring cars that are not made for Malaysia through different channels ... That is not in the interest of the consumers, so they should abolish the APs," he added.