By Sherilyn Goh
Hap Seng Star Sdn Bhd (HSS), a unit of Bursa-listed Hap Seng Consolidated Bhd, is looking at expanding its presence in the East Malaysian automotive market with an additional RM30 million investment as part of its long-term expansion plan, according to Hap Seng Consolidated group chief operating officer and HSS chief executive Harald Behrend.
Behrend was speaking at the media launch for the Mercedes-Benz HSS Kota Kinabalu Autohaus, its seventh Mercedes Benz showroom under its partnership with the German luxury carmaker.
As of the second quarter of 2015, the automotive segment contributed 29% to group revenue of Hap Seng Consolidated and 6% to group profit. Behrend expects significantly higher revenue and profit contribution from the automotive business for financial year 2015.
While majority of the sales will still come from West Malaysia, Behrend noted that East Malaysia has shown increasing potential in recent years. He estimates growth of sales in East Malaysia has increased by 35% to 40% in 2015.
He attributed this to positive economic development in East Malaysia and the introduction of new models from Mercedes-Benz, and expressed optimism in future sales despite lacklustre consumer sentiment.
Harald Behrend
According to Behrend, the company invested RM2 million in the renovation of HSS Kota Kinabalu, housed on the ground floor of Plaza shell at 29 Jalan Tuanku Abdul Rahman. The showroom, which incorporates key aspects of the Mercedes-Benz Presentation System II, is spread across 7,346 square feet.
HSS is the sole authorised dealer for all Mercedes-Benz passengers cars and the major dealer for Mercedes-Benz commercial vehicles and Fuso trucks in East Malaysia.
At present, HSS has seven Mercedes-Benz Autohaus showrooms nationwide, while sales volume has tripled over the past five years to more than 3,600 units in 2015.
As part of the expansion plan, the Mercedes-Benz workshop in Inanam will also be refurbished to cater to the growing after-sales service demands in Kota Kinabalu, added Behrend.
HSS also recently launched its showroom in Miri, Sarawak earlier this year, while a showroom in Kuching, Sarawak is also under construction.
Outside of East Malaysia, a new commercial vehicle outlet in Kuantan, Pahang will commence operations by December 2015, while an additional commercial vehicle outlet in Klang is also in the pipeline.
Claus Weidner
Also present at the event were Mercedes-Benz Malaysia president and chief executive officer Claus Weidner and vice-president for sales and marketing for passenger cars Mark Raine.
“As we celebrate the opening of HSS Kota Kinabalu, we hope to further strengthen the bond we have with HSS,” said Weidner.
HSS and Mercedes-Benz Malaysia began their collaboration in Sabah in 1969, with the commercial vehicle operations.
Today Mercedes-Benz Malaysia has a dealer network comprising 57 authorised dealers nationwide, and has invested RM250 million to date.
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