KUALA LUMPUR: Demak, one of Malaysia’s fastest growing motorcycle brands, has entered the Cambodian market, its third major overseas market after Myanmar and Sri Lanka.
The Kuching-based manufacturer DNC Asiatic Holdings Sdn Bhd will ship 25,000 motorcycles of multiple models and parts worth US$56 million (US$1=RM4.012) to Cambodia by the second of quarter this year.
Its newly appointed local distributor in Cambodia is Asian Comfort Investment Co Ltd (Asian Comfort).
DNC Asiatic Executive Director Hu Ying said the company is now focusing on export market as the local mart is considered almost saturated.
"Almost half of the current (production) capacity of 60,000 units per annum at our plant in Olak Lempit (Banting, Selangor) now cater to export market.
"This year, 25,000 units will be shipped to Cambodia, 5,000 to Mynmar and Bangladesh, while the remaining for domestic market," she told Bernama after inking a distributor agreement with Asian Comfort Chief Executive Officer By Sok Bundith, here today.
Demak motorcycle sales are expected to hit 51,000 units this year, Hu Ying said, adding that the figures include sales in Sri Lanka where Demak had achieved strong growth since its entry several years ago.
DNC Asiatic is using Sri Lanka as a hub to distribute Demak motorbikes to the South Asian continent and African countries.
The company also owns a manufacturing plant in Kuching with a production capacity of another 60,000 units per annum, and in the midst of setting up a plant in Colombo, Sri Lanka once Demak sales in the region reached a sizeable volume.