Rollingwiththeshocks
KYB goes one-on-one with AutomAniA to detAil how it is stAYing AheAd in the Business of mAKing shocK ABsorBers.
ORIGINAL equipment manufacturers (OEMs) must continuously innovate to thrive in the competitive automotive market. There are three building blocks of high-performance OEM businesses in the automotive industry which is market focus and position, distinctive capabilities and performance anatomy.
Only the high-performance businesses, however, have understood how to transform these growth opportunities into consistent business success.
They have done so by focusing on markets best suited to their specific territorial footprint, product lineup and brand positioning.
KYB-UMW Sdn Bhd is one such company. Its managing director, Makoto Kimura, reveals more in a Q&A session.
Automania: Why is KYB used instead of Kayaba which is a more well known name?
Kimura: KYB Corp Japan, embarked on a “Global Identity” exercise through global branding and in December 2005, the standardised brand name throughout the world became KYB with the tagline - “1 World, 1 Standard”.
But today, consumers still talk about Kayaba instead of KYB. How are you going to address this?
This is due to the successful branding of Kayaba in the local market. However, we believe in the near future, KYB will be commonly used instead due to re-branding exercises like roadshows, social media marketing and advertising. We believe consumers will eventually accept the fact that KYB is Kayaba.
What are the types of shock absorbers that you produce?
Basically, KYB Malaysia produces two categories of shock absorbers. These are for 4 wheelers (4W) for automobiles and 2 wheelers (2W) for motorcycles. We are 4W shock absorber supplier for OEM customers like Proton, Perodua, Toyota, Tan Chong Motors Assemblies (Nissan), Isuzu, Hino, Daihatsu, and Honda (from 2016). As for 2W shock absorbers, we are the OEM supplier for Yamaha, Modenas, Suzuki, Demark and Daelim. We also produce shock absorbers for aftermarket (both local and export to 35 countries).
Are KYB shock absorbers suitable only for Japanese cars or can they be used for European/American models?
KYB shock absorbers are not only made to suit Japanese cars, we also manufacture shock absorbers for continental cars like Volkswagen Passat and Santana for China’s market. We also produce shock absorbers for Chevrolet Cruze, Ford Fiesta, Ford Ranger, and aftermarket units for the BMW 5 Series.
Are your shock absorbers developed using local or foreign technologies?
All KYB shock absorbers use Japan’s KYB technologies. Our research and development manager has always been from KYB Japan. This is to ensure standardised global quality with high standards. We don’t compromise on safety.
Are your shock absorber designed for OEM or replacement markets (REM)?
We are able to design and develop shock absorber for OEM and REM. For OEM, we adhere to the requirements and specifications from our customers. For REM, we conduct our own research and development after getting feedback from the market and produce the shock absorbers accordingly. We also produce “Heavy Duty” shock absorbers called RS Ultra and “Adjustable and Performance” shock absorbers called RS Pro.
Do you have other automotive products?
Yes, besides shock absorbers, we also produce power steering pumps for Proton, Perodua, and for export to Mitsubishi and China Motor in Taiwan.
What makes your brand stand out from your competitors?
Having the latest technology and a global network are among our strong points. We are very stringent on quality and the KYB focus is ‘Right Product, Right Quantity and Right Time’. Apart from that, speed of responding to market demand is also a KYB strength.
What are your long term plans as a shock absorber manufacturer? To be top producer in Asean and Asia?
We have embarked on a project called IF17 (Idea Factory 2017). This is to ensure KYB Malaysia maintains its “World Class Shock Absorber Manufacturer” status and is able to compete in a global market. Under the IF17 project, KYB Malaysia invested RM8mil on ED (electro deposition) Coating painting process, which is now fully operational. We are the first shock absorber manufacturer in Malaysia with this process. It has anti-corrosion capabilities, and even paint distribution. It is also environmental friendly because it is water soluble, and safeguards against fire and most importantly, save energy and materials.
Can you tell us about your manufacturing facilities?
Currently, we have two Standard Type Assembly Lines (Telescopic Type) and three Strut Type Assembly Lines (MacPherson Type) which are capable of producing more than four million pieces of shock absorbers in a year. KYB-UMW Malaysia Sdn Bhd was established in 1983 with six workers. Today, it has a total workforce of around 860 people. As mentioned previously, we have embarked on a IF17 project, whereby we have invested a total of about RM25mil last year to upgrade and improve our facilities.
What is the distribution channel of KYB?
For the local aftermarket shock absorber, we have appointed a total of 10 distributors (whom we call KYB Partners) nationwide. Through their distribution network, KYB products are now available and sold in every state. Consumers can go directly to any spare parts shop which is near their home to purchase KYB shock absorber or they can login to our website for information of KYB Partners’.
KYB also manufactures motorbike shock absorbers. Why is there not much emphasis on them?
Motorbike shock absorbers (we also call them Front Fork and Rear Cushion units) are among our major products. We have spent a lot of effort to promote them through media like Roda Roda, Road Star and IMF road show (International Motorcycle Festival). We are also doing some sales campaigns for Motorbike shock absorbers and the response is great. Last year, the aftermarket sales for Motorbike shock absorbers created another milestone for us with the highest sales achieved in our history.
KYB has performance shock absorbers. Why is KYB not using motorsports to promote them?
Yes, we do - in Japan, where we support motorbike racing, track racing and rallying - albeit, not in a big way.
What about CSR (corporate social responsibility) programmes by KYB?
We always have CSR programmes after the three major public holidays - Hari Raya, Deepavali and the Chinese New Year. We conduct charity activities around Banting and Klang to assist the underprivileged. Last year, in conjunction with our 32nd anniversary, we set aside 10 sen for each shock absorber sold and we targeted to achieve 1 million sales. We sold about 980,000 pieces which was just a little short of our target. We partnered with Budimas to distribute the funds to orphanages, old folks homes and societies for the disabled.