Jul 30, 2013

Tan Chong gets sole Nissan rights in Myanmar

Tan Chong Motor Holdings Bhd's (TCMH) wholly-owned subsidiary ETCM (MM) Pte Ltd has been granted exclusive rights to distribute Nissan brand completely built-up (CBU) vehicles in Myanmar.

This is in addition to the group's existing rights to sell Nissan vehicles in Malaysia, Vietnam, Cambodia and Laos.

ETCM (MM) yesterday signed a distribution agreement with Nissan Motor Co Ltd for the purpose. The deal is for a period of five years and will automatically be extended for further periods of one year.

Nissan Motor, Japan's second-largest automotive company, has a range of 64 models under the Nissan, Infiniti and Datsun brands.

"The agreement deepens the level of business co-operation between Nissan Motor and TCMH Group and widens the geographic footprint of TCMH Group's automotive business in Asean," said TCMH in a filing with Bursa Malaysia yesterday.

It said the working capital for the new Nissan business in Myanmar for the first three years of operation is estimated at US$2.5 million, which will be internally funded.

"Distribution of the vehicles in Myanmar is expected to commence in the third quarter of 2013, with projected sales volume of about 300 units per year.

"The new business venture is not expected to contribute significantly to TCMH Group's revenue and profit for the financial year ending Dec 31, 2013 but is expected to contribute positively to the earnings of TCMH Group in the long term," said TCMH.

Source: The Sun Daily