PETALING JAYA (July 23, 2013): Naza Group of Companies will use Cambodia as a springboard to expand into the Indochina region, said its joint group executive chairman Datuk Wira SM Faisal Tan Sri SM Nasimuddin.

He said the best way to expand into the region is to introduce its own brand and then create a platform for its sister companies to expand into those markets.

Yesterday, he announced the opening of Naza Bikes Sdn Bhd’s first 3S (sales, service and spare parts) centre outside Malaysia, in Phnom Penh.

“That’s just the nucleus. As you know, Naza’s business is not just motorcycles. We’re involved in plantation, agriculture, properties and food and beverage. We start with this and as the market grows we’re going to do more and more things,” he told a press briefing yesterday.

He added that three years ago, the group had set its target to expand regionally and it has already firmed up the areas of expansion.

He said the Indochina area will have a population of 660 million by 2020 and the group has the know-how to tap into these markets.

Naza Bikes, a wholly-owned unit of Naza Group, is making its first foray into Phnom Penh, and aims to capture up to 10% market share or sell over 30,000 units there in the next three years.

The group has invested RM1.5 million to develop a 7,000 sq ft Naza Bikes 3S centre in Phnom Penh, which will open by August. The investment includes the cost of facility, after-sales service tools and equipment, spare parts stock and motorcycles.

SM Faisal said it also plans to open a motorcycle plant in Cambodia, but declined to share the investment cost.

“We aim to achieve 30,000 units by 2016 but if it’s just via direct imports it’ll be quite difficult to achieve that figure. So we’re definitely going to have a plant within these two years,” he said.

Naza Bikes will offer its NZ 125R, Naza Blade 250 and Naza Blade 650 motorcycle models to cater to the demand for competitively priced and fuel-efficient, high performance motorcycles there.

The market entrance marks the introduction of Naza’s brand of motorcycles to the Asean region.

“Naza Bikes began planning its venture into Cambodia two years ago. We chose Cambodia as the starting point for the brand’s international growth based on extensive research of its market, culture and the opportunities that the country presents for our business sustainability and future expansion,” said SM Faisal.

He said Cambodia has an estimated 1.8 million registered vehicles, with some 300,000 cars and the rest being predominantly motorcycles and trucks.

An increase of 8% from 2011 to 2012 indicates that the time is ripe for Naza Bikes to invest in Cambodia.

“Our long term goal is to become a full-fledged manufacturer with the ability to produce Malaysian indigenous motorcycles that are internationally recognised and can stand up to the popular Japanese motorcycle brands.

“We hope to eventually assemble our own products in Cambodia and to help with our sales, we are looking at appointing 10 to 20 dealers in 2014,” said SM Faisal.

He said Naza Bikes plans to further extend its reach throughout Asean over the next two years, including operations in Indonesia, Vietnam, Myanmar and Laos.

By Eva Yeong(thesundaily.my)

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