Honda Malaysia (HM) today announced the successful establishment of its East Malaysia centralised distribution centres in Kota Kinabalu, Sabah and Kuching, Sarawak. This marks the first step in HM’s expansion plan into East Malaysia as announced in April.
The new logistic hubs are expected to smoothen operations for both Honda dealers and HM. The vehicle delivery period to East Malaysian dealers is expected to be reduced from the current nine days to three days. The quality of vehicles delivered will be better maintained – a welcome improvement to reduce issues of damage and minor scratches from transportation, and longer hours of exposure to the sun awaiting delivery.
HM’s logistics hubs will be operated and managed by established shipping and logistics management company, Giga Shipping Sdn Bhd. Pre-delivery inspection (PDI) management undertaken by Giga Shipping will include standard key management system, washing bays for vehicles to be cleaned before delivery to dealers, security system to prevent theft, parking lot management system, stock monitoring, a kaizen system to ensure that vehicles remain in good condition while in storage, and a thorough inspection facility.
Last year, Honda saw an increase in market share in both Sabah (2% to 3%) and Sarawak (3% to 5%). The East Malaysian market contributed 5.6% to HM’s overall 2014 sales, which grew 50% year-on-year to propel Honda to the top of the non-national sales chart.
Between January and April 2015, EM sales stood at 1,617 units, a 45% increase from the same period last year. Seeing the potential and increasing demand for its cars, HM made the strategic decision to embark on an expansion plan to support and strengthen its operations, and aims to increase total sales in East Malaysia to over 600 units a month by 2016.
The company is also in the process of setting up a regional office, training facilities and a parts warehouse in East Malaysia, besides planning four new 2S dealers by March 2016 and improvong the services of ten existing 3S dealers.
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