While Naza Group has diversified into other businesses like property and telecommunications, automotive continues to be the biggest contributor, bringing in 60-65 percent of the group’s total revenue.
Chairman Datuk Jasmy Ismail said in an interview with New Straits Times that Naza Automotive Group has targeted its revenue to surpass RM 1 billion in 2023. This is in part due to the increase in demand as well as backlog orders for both new and used vehicles.
“For 2022, the automotive business has reached RM600 million despite being a difficult year for the industry. It (the growth) will continue. In fact, we just finished our business plan for next year and have set the target to grow the automotive business in 2023,” he told the Malaysian daily.
Also read: November 2022 new vehicle sales go up 6%, 642k cars sold so far
With the ongoing global chip and other parts supplies issue affecting new cars, Naza has its reconditioned vehicle business to fall back on.
“We were uncertain about the prospects of the recon car business. But over the past couple of years, the global chip supply issue has created demand on this side of the business. I believe the momentum is coming. We expect a bumper year for our reconditioned vehicles business next year of at least two to three-fold growth in units sold,” said Jasmy.
Naza is looking to invest RM 30 million – 40 million over the next 2 years to streamline its operation, digitalize business, upkeep, and facelift its premises. The automotive group is the distributor for Suzuki, Maserati, and Ferrari. It also distributes Mercedes-Benz under NZ Wheels.
30-40 percent of the total planned investment is to revamp the corporate identity (CI) of the Maserati and Mercedes-Benz showrooms.
Meanwhile, Jasmy told Berita Harian that he was optimistic about Suzuki’s potential for growth in Malaysia after it was reintroduced by Naza in 2020.
Though the S-badge is more of a mass-market brand than the other premium marques under Naza, the company is positioning Suzuki as a lifestyle brand by offering the Swift Sport and the Jimny.
Also read: After losses with Kia, Peugeot, and Citroen, can Naza do better with Suzuki?
He also told the Malay daily that there are plans to bring in a third Suzuki model in the future. At the moment, Suzuki is averaging around 30 to 35 units every month but Naza is targeting 60 monthly units in 2023.
While Jasmy has not revealed much on the new Suzuki model, it’s very unlikely to be a Japanese kei car like the Hustler given our requirements to conform to UNECE regulations, which are not adopted by Japanese domestic market models
Instead, if Naza were to bring in a new Suzuki model, it’s likely to br one of its global models like the Vitara or even the Ignis.
Also read: Suzuki’s return to Malaysia: what other models could be launched here?
Source: Naza aims to generate RM 1 bil revenue in 2023, new Suzuki model planned