Single Hyundai Distributor for Malaysia
Yesterday Sime Darby Motor Group announced via Bursa Malaysia that it will acquire the remaining shares of Oriental-Hyundai for RM19.8 million. This acquisition would means now Hyundai-Sime Darby Motor’s subsidiary Hyumal Motor will now own 100% of Oriental-Hyundai; previously it holds 40% stake. This would eliminate the confusion as to Hyundai vehicles having two distributors here in Malaysia; in fact Malaysia is the only country in the world with two Hyundai distributors for Hyundai Motor Company.
Presently, Hyundai-Sime Darby Motors (previously known as Hyundai-Berjaya) distributes the CBU range of Hyundai vehicles and Inokom badged vehicles while Oriental-Hyundai distributes CKD Hyundai badged vehicles. To put it in short, Oriental-Hyundai distributes Hyundai Accent, Elantra and Sonata while the rest of the range are under Hyundai-Sime Darby Motors.
One would expect to see some form of rationalization of the dealership network when these two distributors became one single entity. We believe this move would be better for the consumers as there would no longer be confusion as to which sales dealer to go to for their vehicle purchase and service/warranty issues would no longer be tied to the service dealers of the respective distributors.
What are your thoughts on this move?
