Lexus sets up shop in Penang

Lexus sets up shop in Penang

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Lexus Malaysia today officially opened a new RM 1.5 million 3S centre in Georgetown, Penang to cater to customers of the brand based in the northern region of Peninsula Malaysia. The showroom’s opening is part of Lexus Malaysia’s ‘network expansion phase’ in its overall plan to develop the Lexus brand presence in the country.

Since officially entering the Malaysian market in December 2006, Lexus Malaysia has sold more than 700 Lexus vehicles to date. Last year, the company found homes for more than 300 Lexus vehicle, majority being the RX350 SUV. These figures were achieved with only one showroom available – Mutiara Damansara.

“Having completed the Brand Awareness Phase over the past 3 years, we are now moving to expand the network presence. With expansion plans in place, we aim to grow our market share,” said Mr Kuah Kock Heng, President of Lexus Malaysia at the showroom’s launch.

With the opening of Lexus Penang, a total sales of 400 vehicles for 2010 is targeted. Existing data from Lexus Malaysia suggests that between 12% and 16% of their customers are actually based in the northern region. The opening of Lexus Penang is expected to boost that figure to 20%, as the brand now moves closer to the customer.

“The opening of Lexus Penang marks the start of extending our reach to be even closer to our customers,” said Mr. Kuah, who also noted that a similar move will be made to extend their reach to the other end of the Peninsula with a new 3S centre in Johor Bahru scheduled for launch late this year.

Operating the showroom is Telagamas Motor Sdn Bhd, which boasts a 28-year track record in the automotive industry. The company also has an extensive working history with UMW Toyota, with two Toyota dealerships under its wing already.

Commenting on the appointment of Telagamas Motor, Mr Kuah remarked, “We appointed Telagamas Motor Sdn Bhd as our partner as Telagamas has a proven track record in the auto industry, strong management capabilities, as well as their commitment and dedication shown in undertaking necessary preparations for the Lexus operation.”

Mr Goh Kian Sin, Managing Director of Telagamas Motor said, “We thank the UMW Toyota Motor management team for giving us this privelege to be associated with this reputable brand, Lexus, a luxury car brand that is committed to offer car owners unparalleled products and services.”

“Lexus Penang, which is strategically located in the centre of Georgetown, will be another landmark to watch out for. I am sure it will attract potential customers to visit the showroom and encounter the true Lexus experience,” continued Mr Goh.

The strategic location Mr Goh was refering to is situated along Jalan Sultan Ahmad Shah. The premises previously housed a Toyota 3S centre, itself a landmark of the area for over two decades, which was relocated southwards to Sg Pinang two and a half years ago. That said Toyota 3S centre also currently handles servicing operations for Lexus vehicles and will continue to do so until Lexus Penang’s service facilities become operational in the middle of this year.

Even though UMWT had actually vacated the premises two and a half years ago, the company decided to maintain its tenancy of the building, with the view of eventually setting up a Lexus facility in its place, a plan that has finally come to fruition.

Since opening its books following a soft launch on 4 Jan 2010, Lexus Penang has amassed 21 bookings of Lexus vehicles to date and a small ceremony was held to present mock keys to the first buyers at the showroom.

Effects of Toyota US recalls to Malaysia

It was inevitable that this question would be posed during the press conference, but Mr Kuah Kock Heng, President of UMW Toyota Motor revealed to us that sales of Toyota cars in Malaysia has remained strong, with about 4,000 orders currently in the company’s books.

Recapping, the only Toyota model officially sold in Malaysia that is subject to a recall is the Prius. Other Toyota models officially sold in Malaysia are thus far unaffected, as they utilize differently designed and sourced components than models subject to the recall.

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