Times continue to be rough for Tan Chong Motor Holdings, with the group reporting a net loss of RM90.28 million for the third quarter of this year, its largest loss in a decade. In a filing to Bursa Malaysia last week, it said the result was driven by a RM53.2 million foreign exchange loss, softer consumer sentiment and a increasingly competitive business landscape brought about by emerging Chinese automotive brands.
The Q3 performance comes on top of a net loss of RM40.1 million in the preceding quarter, and marks the eighth consecutive quarter that the group has been in the red, since the fourth quarter of fiscal year 2022, according to various news reports.
This has contributed to a net loss of RM146.1 million for the first nine months of Fiscal year 2024, which is nearly double the RM73.9 million it recorded in the same period in 2023. Meanwhile, quarterly revenue fell 28.8% to RM462.66 million from RM649.82 million, while revenue in the first nine months fell by 16.8% from RM1.89 billion to RM1.57 billion.
In its filing, the company said that the automotive landscape in Malaysia for 2024 shifted and was marked by an ongoing rise in competition, particularly from Chinese brands that are expanding their presence. It said that these brands are offering models with highly competitive pricing and increasing the competitive pressure on local manufacturers.
Despite the challenges, the group said it remained positive on the long-term prospects of its businesses, stating it had strong fundamentals to stay resilient. It said it would focus on improving business performance, driving better operational efficiencies, efficient cost management and cash flow management to put it in a better position to deliver long-term operational and financial sustainability.
It said that it plans to accelerate the introduction of new models in the coming quarters to strengthen its market position. Having been quiet for a good while on the product front, the arrival of the Nissan Kicks e-Power compact SUV later this month should hopefully see it regain some traction in the market.
The group, which is involved in distributing and assembling Nissan vehicles in Vietnam, Myanmar, Cambodia and Laos, has also begun exporting Malaysian-assembled vehicles to overseas markets for the first time, with the C27 Nissan Serena S-Hybrid making its way to Thailand. Of course, Nissan itself isn’t in the pink of health, so it remains to be seen how it all pans out.
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Is this a surprise? No.
This TCM service is almost non-existent. One model sells for decade without replacement. They are still living in the early 90s.
Report buat rugi
Duit janji masuk
C27 forever
Only way out for Tan Chong is for people like nephew Anthony Tan or Tony Fernandes to buy over at Rm1,revamp and reboot the blardy distributorship.
The directors in ETCM are blardy lunsi,old school,n stuck in a Jurrasic mindset.
With all the aggressive Chinese Evs and hybrids flooding our market,even Honda and Toyota have to wake up..if not they will be swept away like our monsoon floods.
I agree with I. They didn’t rectify the problems existing in each vehicle. Other than that, the quality of their services i.e. car servicing is not up to what we expect.
This time they are bringing in the latest e-POWER model tho.
Scammers
damaged by Carlos Ghosn?
That blame would be on Tan Chong’s board of directors.
Not surprising…the upcoming kicks pricing will likely seal its fate.
It might have a chance, everyone I know who has test driven e-POWER loves it.
Yang lain akan menyusul
Hope tan chong gulung tikar soon. I would rather Nissan leave Malaysian market then seeing them got humiliated by tan chong much further
Latest e-POWER model launching this month tho, give it a shot.
Most other car makers can use the excuse of Chinese car emergence, but not TCM…
They always syiokk sendiri & ruining Nissan’s reputation here by selling outdated models…
This time they are bringing in the latest e-POWER model tho, it’s a step in the right direction.
the losses is mainly contributed by the incompetency of the management. that’s all.
I agree.. Tcm management don’t care about quality of their services, don’t care about customers etc. serve Tcm right. Nissan should find new distributor for itself
This time they are bringing in the latest e-POWER model tho, it’s a step in the right direction.
Gonelah my Nissan secondhand value.
Looks like they really made alot of money selling Nissan Sunny’s and Sentra’s back in the day that they could afford to swallow all these losses….
Tis is wat hapen when u keep on selling older models wit exobit price. Y can’t they bring in up to date models like in Thailand n Indonesia to let other brands run for their money
The latest e-POWER model launching here tho, go test drive first and see.
Years of zero innovation. Cutting corners. They had to be egged on by Honda to actually put more features into their cars instead of more plastic trims and 2 airbags.
TCM deserves this.
This time they are bringing in the latest e-POWER model tho, should check it out when it launches, might be a game changer.
2 reasons..
1. Selling a 1.0 litre car for RM90k makes no sense
2. Invested too much into EV. EV are going down the drain!!
no new products. duh? looks like sales of nissan vanette already dried up. time to stop overpaying your lazy salesman. so many of them driving nice mercedes at nissan pj showroom.
The new KICKS e-POWER launching this month, should check it out and test drive first.
I think the Japanese brands ought to group together and combine under only one or two umbrella group with multiple sub-brands. The Chinese marques at this point are still multiplying like rabbits, but sooner or later, inevitably, more than a few will shut down or be absorbed by the larger player.
Most M & As typically under delivers. But for car companies, I do think the chance of it being successful is higher. Esp. those that share a lot of similarities.
They should follow their own marketing slogan that turns out to be an admonishment – GO AND CHANGE.
Change your management, change your directors, change everything from top to bottom.
Where is Civic fighter model. Why aren’t TC bring it here? The new Nissan Murano? Even the plush and comfort Nissan Murano also didn’t get into our market.
In overseas market, there is Nissan model that can compete with Honda Civic. But here TC didn’t even bother to bring that model.
Nevertheless kudos to TC for bringing the Turbo Nissan Almera, is light but the features are a bit outdated. Outside design still very much beautiful.
The Chinese car with android entertainment system and other convenience features are hard to beat. But handling wise and fuel consumption, the Japanese car still win.
blame it on Chinese cars? but you have been losing money for the past decade, which is well before the Chinese car onslaught. Stop blaming. Look internally, see what have you been doing wrong and right. Improve. Perhaps there’s still time to rebound. Even Proton can rebound.
Nissan & Tan Chong.. what a deadly combo.. tunggu lingkup je la
Last gen almera, grand livina and serena still buyable. Too bad the company had gone wrong directions selling uncompetitive price point cars that can’t rival honda and toyota.