KUALA LUMPUR: After giving up two of its most prominent franchise brands in Peugeot and Kia, observers are wondering if Naza Group will do well with the Suzuki business.
They are also wondering if the brand can compete with the likes of Perodua, Proton and incumbent Japanese brands notably Toyota and Honda which have been leading all the segments of the market with a tight grip.
The key question is whether Naza's relationship with Suzuki Motor Corporation (SMC) is firm and cordial enough to help it weather the challenges.
A recent meeting with Naza Eastern Motors Sdn Bhd seems to have provided the answers.
Its top executive is confident that Naza Eastern is poised to grow the Suzuki brand in Malaysia, backed by the support from SMC.
Naza Eastern Motors chief operating officer Mohd Irwan Shahril said Naza and its principal are committed to the Malaysian market. They are confident that Suzuki can continue to compete with the major marques here.
SMC has allocated a total of 440 to 460 units for the Malaysian market this year.
"This number represents a significant increase compared to around 243 units last year and 37 units in 2021.
"Next year, the number of vehicles will be increasing further to reach four figures. SMC is very cautious in determining the allocation of vehicles for the Malaysian market," Irwan told Business Times.
Strategic focus on profitable niche models
Naza Eastern's recent distribution meeting with SMC in Vietnam revealed a focused approach to growing the Suzuki brand in Malaysia, particularly emphasising profitable niche models.
The company recognises the potential of catering to specific markets aligned with current automotive industry trends, as highlighted during discussions at the meeting.
"When we talk about a profitable model, it is not the model for the masses. But a very specific niche model, yet it is in line with the automotive industries trends.
"For example, we have seen the SUV market has been growing over the last 10 years. So that is something that SMC knows because we have been sending reports based on how the Malaysian automotive trend is concerned," Irwan said.
In 2021, Naza Eastern brought the two latest Suzuki models called Swift Sport and Jimny to Malaysia after being appointed as the official distributor.
Irwan also shared the company's successful roadshow experience held at an outdoor expo in Kelana Jaya.
The event specifically catered to outdoor enthusiasts, resulting in an impressive 11 bookings in a single day. Such targeted initiatives have proven effective in generating interest and sales for Suzuki's niche models.
Regarding participation in auto shows, Irwan said Naza Eastern's approach is to wait until Suzuki has a more extensive lineup of models, aiming for at least five in total.
This strategic decision ensures a more impactful presence at such events, maximising the potential for customer engagement and brand exposure, he said.
Plans for EV launch
Naza Eastern has announced its plans to venture into the EV market, with an expected launch in 2025.
While the specific model remains undisclosed, Irwan has confirmed negotiations with Suzuki to ensure the timely introduction of the EV in line with the Malaysian government's timeline.
He said the government's EV incentive programme is set to expire on Dec 31, 2025, motivating Naza Eastern and Suzuki to expedite their efforts to bring the EV to market earlier.
"We have discussed with SMC about the incentives provided by the government for fully imported electric vehicles (CBU). As a result, SMC has provided a timeline for 2025 instead of the initial plan, which was set for a year later," he said.
SMC has decided on specific EV models to be introduced in Malaysia, but further details cannot be disclosed at this time.
"We have taken into account the government's position regarding the expiration of EV incentives. At the same time, we also do not want to lag behind in offering EV products in this country in line with the commitments of other manufacturing companies.
"Japanese companies are less inclined towards EVs, instead, they lean more towards internal combustion engine vehicles or plug-in hybrid electric vehicles for now," he said.
Stay bullish, eyes new model
As part of its strategic plans, Irwan said Naza Eastern is making significant strides this year by appointing four new dealerships in strategic locations.
He said the move is part of the company's expansion plan to establish a stronger foothold in the country and support the growth of the Suzuki brand.
"Naza Eastern's expansion plan involves appointing dealerships in key regions to strengthen our presence in Malaysia. The four newly-appointed dealerships are situated in Malacca, Sibu, Kemaman and Kota Bharu, with an additional one in Alor Setar for the northern market.
"The Sibu dealership will cater to the Sarawak market, while the Kota Bharu and Kemaman dealership will serve the East Coast market," he said.
Naza Eastern is poised to introduce a third model to the Malaysian market, and the excitement is already building.
"We are not keeping it a secret; we will be bringing in the 'big brother' of the popular Suzuki Jimny. The highly anticipated model is expected to make its debut in Malaysia sometime in late 2024," Irwan revealed.
The big brother is believed to be the iV-4, a reincarnation of the Vitara SUV model.