KUALA LUMPUR: Naza Automotive Group (Naza Auto) has set an ambitious target of a 10 per cent increase in sales volume for 2024, following a successful 2023.
Naza Auto group chief executive officer Mohd Rizal Jailan said in 2023, it surpassed its RM1 billion sales target with a total sales volume of 4,000 vehicles.
Rizal emphasised that there are some parameter changes in how the company looks at its financials, where the focus for 2024 is on increasing the volume of cars sold.
"We do not look at the revenue, compared to 2023. We look at the volume of cars that we plan to sell this year, which is 10 per cent higher than last year," he said in an interview.
According to Rizal, the growth will be supported by the expansion of their dealer network and the introduction of new models throughout the year.
"We have to expand our dealer network. We call it retail partner network, mainly for Ducati and Suzuki, and we work very quickly with Mercedes-Benz to be part of their programmes.
"So, this is the opportunity for us to increase our order intake."
Rizal said Naza Auto is planning to launch several new models this year, especially for Suzuki.
He said recently, it launched two new variants of the Suzuki Jimny called Rainforest and Suzuki Black.
Additionally, he said a totally new Jimny will be introduced by the third quarter of this year.
Naza Auto is the sole distributor of Maserati, Suzuki and Ducati, and a dealer of Mercedes-Benz.
Electrification, green mobility and diversification
Looking ahead, Rizal has outlined key focus areas to capitalise on Naza Auto's brand portfolio while venturing into new avenues such as electric vehicle (EV) and green mobility initiatives.
"We want to focus on our existing brands because they have EVs. For example, Mercedes and Maserati. Suzuki is coming in, though I cannot share more details. Ducati is not in the EV market. We are looking at these three brands that we already have, to work and grow with them for the traditional products and also the new EVs."
Rizal said Naza Auto is also exploring opportunities in green mobility, such as the infrastructure for EV and public transport.
He said Naza Auto is looking at diversifying its income streams, particularly through Naza Transport and Naza Credit.
"While the development of a public transport offering is part of our long-term plan, Naza is committed to supporting the government's transformation agenda and establishing green mobility solutions for the nation," he added.
Price adjustments following the service tax increase
Naza Auto is contemplating the possibility of price adjustments in response to the recent service tax increase. The company, however, is taking a cautious approach and will monitor the situation before making any decisions.
Rizal said the company will adopt a "wait-and-see" approach.
"While the group does not have any immediate plans to increase its car prices, various factors need to be considered.
"Vehicle pricing is not only affected by the service tax as there are other factors such as foreign exchange rates.
"Obviously, we are going to sit down and look at all factors but Naza does not intend to burden our customers."
To mitigate this, Rizal said the company is exploring ways to control operational costs to ensure that prices remain competitive.
He declined to comment on the high-value goods tax, which will be implemented on May 1.