KUALA LUMPUR (March 20): Bermaz Auto Bhd, the distributor of Mazda cars in Malaysia, will concentrate on the complete-knocked-down (CKD) market to grow sales.
Bermaz chief executive officer Datuk Francis Lee said the company hopes to receive the government's support as the group focuses on the CKD market.
“We still get bookings since the SST (Sales and Services Tax) implementation (on Sept 1, 2018). We are not going for big volumes, we are going for decent volumes to generate enough profitability for our stakeholders.
“We have the option to invest in plants or pay more dividend, but that will depend on the board’s decision,” Lee told reporters today at the Invest Malaysia Kuala Lumpur 2019 event.
Lee had also fielded questions on Bermaz's sales volume. He said the company expects flat growth in sales volume for financial year ending April 30, 2020 (FY20) at about 16,000 units versus a year earlier, due to the absence of Malaysia's tax holiday.
Malaysia's tax holiday between June 1 and August 2018 due to the Goods and Services Tax (GST)-SST transition, had fuelled automotive sales in the country as consumers capitalised on lower prices for cars.