Berjaya Auto (BAuto) is close to securing rights to be the exclusive distributor of SsangYong vehicles in Malaysia, The Edge reports. BAuto, the parent company of Bermaz Motor, is synonymous with Mazda in Malaysia.
In January, BAuto announced that it will be reviving the SsangYong brand in the Philippines via SsangYong Berjaya Auto Philippines. It plans to introduce the Korando, Rodius (Stavic) and new Tivoli in the fast growing market and the target is to sell 500 units by the end of 2016. BAuto is also the Mazda distributor in the left-hand drive ASEAN market.
It has been reported in the Philippines that BAuto has secured the rights to distribute SsangYong vehicles in all main ASEAN markets, and that assembly of key models in Malaysia was a condition for BAuto getting the distributorship.
For that, BAuto is eyeing Oriental Holdings Bhd’s assembly plant in Tampoi, Johor, The Edge’s report added. BAuto, currently going through a management buyout, could not be reached by the business publication for comment. The company’s Mazda cars are assembled at the Inokom plant in Kulim, Kedah.
BAuto has been widely credited with the turnaround of Mazda’s fortunes in Malaysia since taking over the brand in 2008, although we think that attractive models from the Zoom-Zoom brand pushed itself too. Will the company’s “magic touch” extend to SsangYong?
It’s a very different kettle of fish, the Korean 4X4 brand now under Indian ownership after Mahindra & Mahindra bought over the ailing company in 2011. Since then, not only has SsangYong yet to turn in a profit, it recorded a loss of 61.9 billion won last year, 21% worse than in 2014. Overseas sales accounted for 26% of the company’s revenue in 2015. It was 50.3% in 2012.
In Malaysia, SsangYong is under the stewardship of Competitive Supreme, which also held the MG Rover and Citroen brands in the past. Last year, it sold just 109 units and sales have got worse – the brand failing to get off the mark in Q1 2016 with zero cars sold. A long way from the glory days of the Rexton.
“There are some brands in the industry that you do not touch and SsangYong is one of them. SsangYong is a very weak brand. You will need to pump in a lot of money to make it work. Unless the principal is putting in the money for it, it’s difficult to see how the brand can be revived,” an industry observer told The Edge.
Another winner or a task too far for BAuto?
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A huge test for berjaya group.
i rather they try to bring back skoda than waste their time on ssangyong. is there a franchisee for skoda here still? all they need is a competitive price.
Proton gonna beg for another RM5bil within 3 years. Mark my words!
Buy their junk cars or not, we all Malaysians are subsidizing Proton.
So what it is loan
We have enough substandard vehicles in Malaysia. We don’t need more choices in this area.
Don’t bother. There are so many choices for the money. Why buy a heartache.
the next Mazda is coming!!
actually the Tivoli has been getting so much good reviews from European publications…bt unless this Bauto does something with its after sales and really spend money on marketing and all , then its a non starter
It will definitely be a Tall Order for BAuto to turn this brand around in Malaysia, especially when the parent company itself is not making any money. It is would have been much better if they had just ‘killed’ the brand in Malaysia, as the previous steward’s performance wasn’t that great, which I am pretty sure most current and previous SsangYong owners can attest to…
Hm… Is that why used car Stavic selling price jumped more than RM15K recently? (At least there was one advertisement from the same dealer) LOL
Don’t even understand why someone would want a Ssangyong franchise, should have picked up SEAT or pump in more funds to revive Skoda.
who knows BAuto plan to take over SY..or JV for Asean market..
Any ssangyong owner? How’s the long term usage ?
SSangYong and Long Term don’t go together in the same sentence.
i thought this company bankrap already what….
all korean car companies are a joke here in malaysia….
and not to mention VW of germany too!
Tivoli. Dear Leader kata jangannnn.
Berjaya Auto has been doing well lately and I certainly don’t doubt their capabilities. I’m just worried that they’ll ‘pull a British Leyland’ at this rate. BAuto has too many franchises right now, but other than Mazda, none of the others are particularly noteworthy or successful.
I don’t think it’s wise for BAuto to buy the OASB plant in Johor. It’s already so old and incompetent, I doubt it’ll be up to the task of assembling the new SsangYong cars… and the land value can’t be all that high either. They may have to invest quite a bit into the OASB plant to bring it up industry standards. Right now, OASB assembles Chery’s cars… and they aren’t the most reliable in town. OASB always had issues with quality control, going back to their Hyundai and Honda days. What to do.
Anyway, this is still good news, and I wish BAuto all the best. As long as Ben Yeoh is at the helm, I’m sure some good will come of this… and the new Tivoli is quite nice too.
Saw one red Korando near Seremban sometime ago…it actually looked kinda cool tbh.
i think probably because of a range of SUV in SsangYong, and SsangYong has been widely known as an SUV maker as well, and we all know how huge SUV market is around the world right now.
and it’s a risk for sure, but it’s also a chance for BAuto to have the upper hand when they are negotiating the terms and conditions.
Any ideas about DS5 Citroën…pls advice