MBM to increase investments in Malaysia
Mercedes-Benz to beef up leadership presence in luxury vehicle segment
MERCEDES-Benz Malaysia (MBM) plans to increase investments locally to beef up leadership presence in the country’s luxury vehicle segment.
Its president and chief executive officer Dr Claus Weidner said Malaysia was a conducive environment for the German marquee to expand its reach, weighing on the government’s tax incentives.
“We are definitely very happy to be here. From 2003 until last year, we invested over RM1 billion and we will continue to invest as we are confident of growing our premium brand in the Malaysian market,” he said recently.
The additional investment will depend on the company’s economic feasibility perspective and market demand, said Weidner, adding that it was still early to quantify the exact amount.
On the government’s recentlyannounced plan to restrict importation of foreign cars into the Malaysian market, he said MBM supported a level playing field in the automotive industry, which would be in the best interest of automotive players.
“We are actually a local player. We are proud of this, and our investment in the industry involves the production facility in Pekan, Pahang, dealer networks and human capital development,” said Weidner.
MBM’s vehicles sold in the country were mainly locally assembled models, including the CClass, E-Class, S-Class (limousine) and the GLC (sport utility vehicle).
Asked on how the impending Sales and Services Tax would impact MBM’s pricing, Weidner said the company would need to examine the new tax mechanism.
“We are looking at long-term pricing strategy, but we have to see how the new taxation system will impact our cars,” he added.
Weidner said MBM was confident of achieving another sales record this year, noting that it was on track to retain its leadership position in the luxury segment locally.
“We just launched a big range of the S-Class family and there are still more launches in the pipeline,” he said.
In the first half, MBM led the local premium segment with a 2.5 per cent market share, registering a 15 per cent increase in sales to 6,790 units, from 5,913 units in the same period a year ago.
MBM sales and marketing of passenger cars vice-president Mark Raine said the firm’s locally-produced limousines continued to be the biggest sales contributors, recording 18 per cent growth with 4,322 units delivered in the first half.