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network development

A new bi-marque 3S dealership handling the Peugeot and Citroen brands has opened in Alor Setar, Kedah. The new facility is the result of collaboration between Nasim Sdn Bhd, the official distributor for the Peugeot brand, and Naza Euro Motors Sdn Bhd, the official distributor for Citroen in Malaysia, as both companies aim to extends their network reach to the northern region.

“The launch of this new bi-marque Peugeot and Citroen Alor Setar outlet is the continuation of our expansion plan to increase our network and reach in Malaysia. This also ensures that we are able to cater to the needs and demands of our customers at an accessible location,” said Dato’ Nik Hamdan, Deputy Group CEO of Automotive Group, Naza Corporation Holdings.

Peugeot-Citroen 3S outlet in Kedah

RM2 million investment
Built with an investment of RM2 million, the new outlet has a showroom that can display up to 8 cars. There are comfortable lounges for customers and a cafe corner within the 15,000 square feet of built-up area. The service centre has the capacity to service up to 250 cars a month with its 5 bays.

Peugeot-Citroen 3S outlet in Kedah

Unique to the bi-marque outlet is the full implementation of the new Peugeot and Citroen showroom concept – Peugeot Bluebox and Citroen La Maison. The Peugeot Bluebox concept aims to introduce customers to an immersive Peugeot experience that is modern and upmarket while the Citroen La Maison offers customers an interactive and fluid experience inspired by its warm and contemporary living space.

“We are confident of meeting the expectations of the Alor Setar and overall Kedah market, as the team have been extremely committed on the implementation of the two holistic concepts from Peugeot and Citroën which is sure to add to the brand ownership experience,” added Dato’ Nik Hamdan.

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Although Sabah is some distance away from Proton’s headquarters in Peninsular Malaysia, attention to its business in the state is just as much as for any other state in the country. As the customer base grows, there is a need to ensure that there are sufficient facilities to provide sales and aftersales services.

In fact, according to Proton’s CEO, sales in East Malaysia this year have seen a growth of 31%, whilst for Sabah, the increase was 39%, compared to the same period last year. “Brand perception has also shifted and this is evident from our increasing sales,” said Dr Li Chunrong, CEO of Proton, adding that the Saga remains a popular choice in the state.

Proton 3S outlet in Kota Kinabalu

In support of the need for network growth, Shirba Auto World Sdn Bhd has officially opened a new Proton 3S outlet in Kota Kinabalu, the state capital. It is the third Proton dealer outlet opened in Kota Kinabalu, joining 104 3S/4S outlets nationwide.

As a new Proton investor, Ridzuan Datuk Hj Lassim, Director of Shirba Auto World, sees a lot of opportunities in Proton. “The future business outlook for Proton is promising, especially with its range of new car models. It also gives a lot of confidence to the public that Proton is currently managed by a pool of talent with global experience. It is a company which is exciting, international, forward looking and ready to take on the market,” he said.

Proton 3S outlet in Kota Kinabalu

The outlet has a built-up area of 2,259 square metres with a showroom to view the various models and a service centre with 12 service bays. Customers can relax in the comfort of the lounge while they wait, and they have free access to wifi service.

“The initiatives that are put in place have resulted in us gaining confidence from investors and the market. Many have decided to invest in a dealership because they have witnessed the positive developments at Proton. They see Proton as a solid brand and are willing to partner with us,” Dr. Li said.

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BHPetrol

For most car companies, the southern region of Peninsular Malaysia accounts for many of their new vehicle sales. It is a prosperous region with steady development and opening of new townships. For this reason, network development gives a lot of focus to Johor and recently, Naza Kia Malaysia opened a new 3S outlet in Tampoi, Johor Bahru, in partnership with authorised dealer Supreme Priority Sdn Bhd.

Kia Tampoi Outlet

Located along Jalan Tampoi, the Kia Tampoi 3S Centre has a built-up area of 18,000 square feet. Its showroom can display up to 7 vehicles so visitors will be able to see a good selection of models. As a 3S centre, it offers sales, service and spare parts and is geared to handle up to 100 Kia vehicles a month. Supreme Priority invested RM5 million to establish this 3S outlet.

Serving owners in Tampoi and surroundings
The Kia Tampoi 3S Centre is also intended to serve owners in the surrounding areas of Tampoi New Village, Skudai, Nusajaya and Larkin. Its strategic location means that they now have a shorter distance to travel to get full aftersales support.

Kia Picanto
Kia Picanto – one of the latest models available

“With the new Kia Tampoi 3S Centre, we have altogether 6 Kia outlets in Johor and with that, we are confident we will be able to cater to the needs and demands of our customers and future customers here. Johor has been a significant market for us as 90% of Korean car owners here own a Kia,” said R. Devaraju, Deputy Group CEO, Automotive Group, Naza Corporation Holdings.

Mr. Devaraju added that the company has plans in the pipeline to further enhance the current network and expand on the 45 Kia outlets nationwide.

Click here for other news and articles about Kia in PISTON.MY

Visit www.kia.com to know more about Kia models available in Malaysia.

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The beginning of the Malaysian car industry can be considered to have started in the mid-1960s when the government introduced its first policy for the automotive industry. The policy set a strategic direction with the implementation of preferential tariffs for carmakers that assembled their vehicles locally, as well as used parts obtained in Malaysia. It was one of the moves to take the country’s economy from being agriculture-based to industry-based.

Response was good from the carmakers and by the end of the 1960s, a number of assembly plants were operating and producing a variety of models. However, the majority of these plants were in Peninsular Malaysia – clustered in the Klang Valley and in Johor. This was because vehicle demand in Peninsular Malaysia was growing rapidly.

The East Malaysian states, on the other hand, were still largely lacking a proper road network and potential sales were also not high back then. Commercial vehicles and 4×4 vehicles like the Toyota Land Cruiser and Hilux were more popular than cars.

So while the development of the sales and service network was more active in Peninsular Malaysia, it was slow in Sabah and Sarawak. This is not to say that the states were neglected by the car companies, but it was a matter of the number of vehicles sold and the number of supporting outlets needed.

Proton 4S Sabah

Today, however, the East Malaysian market has grown substantially as the economies of the two states have advanced. This has been helped by the better roads and road network and rather than travel in bumpy light commercial vehicles, many East Malaysians now prefer passenger cars with more comfort.

Sabah gets Proton’s first flagship 4S centre
Perhaps in recognition of this progress, Proton chose the state of Sabah for its first flagship 4S centre in Malaysia. The brand new outlet is operated by Fook Loi Corporation (Sabah) Sdn Bhd and has a distinctive Corporate Identity that is associated with the new Proton which has come about following the partnership with Geely.

Setting up a dealership requires millions of ringgit in investment and as Proton has shown that the brand is on the ascendancy with rapidly growing sales, businessmen now see being a Proton dealership it as a viable investment.

Proton 4S Sabah

“Deciding to become a Proton dealer was not difficult because we see the potential for Proton in Sabah. The current range of Proton models is highly competitive and technologically advanced with features that appeal to the new generation of car buyers,” said Thomas Chiu Kui Yin, Group Executive Director of Fook Loi.

Additional Body & Paint services
Seeing much potential in the aftersales business, Fook Loi chose to go all the way and be a 4S outlet. This means it offers customers an added Body & Paint service for the repainting and restoration of vehicles to Proton’s standards when they have been damaged.

Proton 4S Sabah

Proton 4S Sabah

Proton 4S Sabah

Every aspect of the outlet adheres to Proton’s objective of giving customers a great experience and is spacious, comfortable as well as pleasing to the eye. It offers free wifi, a kids’ corner, ample parking space and a coffee area. Equally important, the outlet has well trained sales and service staff who can provide a high quality customer experience.

“These may seem like simple requirements, but they are critical ones. When customers walk into our showroom or service centre, they would like to be greeted by smiling faces and a beautifully lit area. This will then set the tone for more meaningful conversations and customers will feel welcomed and appreciated. Since outlets are our first point of contact, numerous steps have been taken to ensure that a wholesome experience starts here. These efforts have paid off. Our sales have been on an increasing trend and with our new products, we are confident that we are on track for the company’s return to profitability,” said Dr. Li Chunrong, CEO of Proton.

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Every car company wants to sell as many vehicles as possible and each year, there is the expectation that there will be more deliveries than the year before. However, as some companies have discovered to their regret, the pursuit of more and more sales without equal attention to expanding the aftersales network – especially authorised service centres – can create problems for customers. Lack of advance planning to cope with an increased number of new vehicles requiring regular servicing will mean customers have to wait longer for an appointment.

Push to upgrade network for future
One of the first things which Proton did after it had Geely as a partner was to review its entire network and upgrade it. Though there were many dealers all over the country, not all were offering the full range of services for customers and in order to enhance the ownership experience, Proton aimed to get its network to be majority 3S/4S outlets. This meant that they would have sales, service and spare parts (3S) at one location, and those with additional space would also have extra services such as painting and body repair (4S).

Proton

The initiative was initially met with resistance as it required large investments. There were many small dealers who had just a showroom in a single shoplot and were satisfied just selling a few cars a month all the while. They didn’t understand that with additional investment to upgrade their dealership, they could grow their business further and derive extra income from aftersales services. Instead, their customers were being ‘stolen’ by dealerships which would look after their needs and probably sell them their next Proton. So these one-shoplot dealerships (referred to as ‘1S’ in the industry) could never grow as the only money they made was from the sale of the car. As those in the car business will tell you, there is much more money to be made in the aftersales side.

Proton’s CEO, Dr. Li Chunrong, pushed hard for the upgrades in spite of criticism by certain groups but he explained that it was necessary to prepare the network for growth and to ensure that customers would have a better ownership experience. There was no point in developing better models if the aftersales support was poor and people felt the brand image was not something they were proud of.

Proton

100 3S/4S outlets to date
With the opening of a new outlet in Seremban, Negeri Sembilan, recently, Proton now has 100 3S/4S outlets nationwide, which makes it the brand with the largest such network. The new 3S outlet at the Oakland Industrial Park was built with an investment of approximately RM4 million. Located near the Seremban 2 Township, it is surrounded by new malls and housing areas which already have many Proton owners and will have many more in future.

Proton
The new 3S outlet at the Oakland Industrial Park in Seremban, Negeri Sembilan.

Proton

“What we have achieved is the culmination of hard work, dedication and commitment by the entire Proton family, from our vendors, dealers and talents in the company. From the beginning, we held the belief that to progress, we need sufficient outlets, good products, great technology in our cars and talent to manage the expectations of the company,” said Dr. Li.

“The results speak for themselves. Our sales have soared and we have since reclaimed the second spot since April this year. Total sales for the month ending July stand at 52,269 units compared to 35,561 in the same period last year, which equates to 47% growth in overall year-on-year sales,” he added.

Click here for other news and articles about Proton on PISTON.MY

Visit www.proton.com to locate showrooms and service centres in Malaysia

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