KUALA LUMPUR: DRB-Hicom Commercial Vehicles Sdn Bhd (DHCV), the authorised importer and distributor of Tata Motors Ltd commercial vehicles in Malaysia, plans to introduce three new vehicles for 2018 and a local-assembly programme in the mid-term.
Since its brand launch in 2015, DHCV has sold 654 units of Tata commercial vehicles. The total sales volume consisted of pickup trucks, light trucks and prime movers.
This puts Tata in 10th place amongst a total of 28 competing brands in the commercial vehicle (CV) category, which includes pickup trucks, trucks, prime movers, panel vans and buses.
DRB-Hicom Bhd Automotive, Distribution, Manufacturing and Engineering chief operating officer (COO) Datuk Abdul Harith Abdullah said the group is ready to move up and be a bigger player in the commercial vehicle category and in selected segments.
“The last three years have been a learning curve for us. Come 2018, we are confident we have the right products in terms of technology, affordability and durability to be truly competitive in the commercial vehicle category.
“We will be offering three all-new products – two in the light commercial vehicle segment and one in the small pickup segment,” he said.
DHCV COO Chin Tan Hee said this is the company’s debut in the small pickup category with an all-new product.
“Based on our research, we are confident we have the right product for this segment and are able to serve most requirements of customers within the segment.
“Small pickup constitutes two percent of the total pickup segment. Our objectives are to offer customers an alternative and a highly competitive product. The Tata Motors small pickup is a highly successful product, many of which are reliably plying the roads in other regional markets.
“We are confident it will help us gain a fair share of this promising and growing segment,” said Chin.
With the introduction of its all-new Tata small pickup, DHCV anticipates to command about 10 to 15 per cent of the small pickup segment by 2022.
For 2018, DHCV plans to achieve a volume of 150 units of light-duty trucks to capture two per cent of a segment that is expected to have an annual volume of 7,500 units.
Plans for local assembly are in place and will be implemented at the appropriate time in the near future.
Chin said local-assembly is more ideal, in line with the government`s aspirations to promote the suppliers` ecosystem while creating new ones, offer employment and develop new skillsets.
It will also introduce DHCV and Tata to more business opportunities including potentials in the public sector.
With higher volume achieving economies-of-scale, it is also a cost-effective option for various stakeholders and customers as parts and service will be readily available, lowering overall ownership and running costs.
Local assembly will be carried out in DRB Hicom’s assembly plant in Pekan by HICOM Automotive Manufacturers (Malaysia) Sdn Bhd.
Tata Motor’s customers in Malaysia are currently served by a network of 24 outlets located at strategic locations and in major townships nationwide.
DHCV said aims to expand this network across Peninsular and East Malaysia, in tandem with sales growth and market penetration in the near future.