KUALA LUMPUR: Syarikat Motosikal dan Enjin Nasional Sdn Bhd (Modenas), a subsidiary of DRB-Hicom Bhd that is known for its mopeds, will introduce a foreign strategic partner (FSP) before the end of this year, which will support its model development and further expansion into the Southeast Asian market.

“We have been talking for quite some time, and we have finalised [the FSP] for Modenas, but I will not say anything else today (yesterday). It will definitely be this year,” said DRB-Hicom automotive distribution chief operating officer Datuk Abdul Harith Abdullah yesterday.

Modenas will unveil new strategies for its export programme, concurrently with the partnership announcement, Abdul Harith said. He was addressing the press at the launch of Modenas’ new 110cc bike, the Kriss MR2, here yesterday. Modenas currently exports to over 17 countries.

The national motorcycle company, however, is not looking for major investments from the partnership, said Abdul Harith, as Modenas can make use of its current production capacity in Gurun, Kedah, of 120,000 bikes annually.

“We want to utilise this plant’s capacity, [and] at the same time capitalise on new market growth. We can do that without any major investments — just model development,” he said.

Besides Modenas, DRB-Hicom also owns a major stake in Proton Holdings Bhd. Proton is due to announce its own FSP by the middle of this year, which is one of the conditions set by the government when it pumped RM1.5 billion into the company last year.

When asked if Modenas will move into more lucrative segments such as the 150cc range, Abdul Harith said the small-end moped is still the biggest market segment in the country. Modenas sold close to 40,000 mopeds in the 2015 to 2016 period.

And Modenas will introduce new models as the FSP comes in, he said.

“We will have to pace it properly so as not to shock the market. For the last two years, the motorcycle market has not been very encouraging. [But it has] somehow stabilised today, to a certain level.

“The new segments are also still niche; they are growing but still cannot generate the level of volume that we are looking at [with mopeds],” said Abdul Harith.

“Yamaha and Honda have rolled out their 150cc bikes, so we may have been a little too late [to jump on] the bandwagon. Acceptance of the brand is very important, and that is what we are going to do with Modenas this year,” he added.

Modenas is also targeting to increase its domestic market share for its motorcycle segment to 60,000 units or 10% in 2017 with the launch of its new 110cc Kriss MR2 from the Motosikal Rakyat series, which has a starting price of RM3,890.

The scooter segment is another division that Modenas is strong in — it has been receiving high demand for its benchmark model, the Elegan 250, so much so that supply ran out last month, with Modenas pledging to increase production next month. 

“It’s a happy problem,” said Modenas chief executive officer Amirudin Abd Kadir.