KUALA LUMPUR (Feb 27): Growing vehicle sales, service demand and an increasing number of enterprises in the automotive product market are driving growth in the original equipment manufacturing (OEM) and replacement equipment manufacturing (REM) sectors for both two- and four-wheelers in Malaysia, prompting Hong Leong Industries Bhd (HLI) to advance into producing automotive spare parts through a newly set up subsidiary, Tekhne Sdn Bhd.

HLI is the manufacturing, assembly and distribution arm of Yamaha motorcycles, parts and services, in a joint venture with Yamaha Motor Co Ltd.

“The estimated value of automotive products in Malaysia is projected to reach US$8.32 billion (RM39.76 billion) in 2024, with a compound annual growth rate of 5.71% expected from 2024 to 2028,” said Tekhne general manager Chong Chee Kong at the company’s unveiling on Monday.

“In addition, used car sales in Malaysia are steadily increasing, contributing to growth of the automotive aftermarket service industry, which indicates rising demand for replacement parts,” he said.

The HLI subsidiary will provide a range of OEM and REM parts for both two- and four-wheelers. Tekhne’s product portfolio is made up of three components — accessories, performance parts, and fast-moving service items. 

Tekhne is collaborating with companies such as Taiwanese bicycle manufacturer Giant Group for product development by crafting advanced cast wheels for two-wheelers, with expansion to four-wheelers in the pipeline. Tekhne will also provide products and services to AHM Motor Sports.

“Our primary objective is to develop OEM and REM parts not only for motorcycles, but also for cars. Our aim is to cater to the growing demand in this segment, and capitalise on the promising market size and opportunities that are present,” said HLI group managing director Professor Datuk Dr Jim Khor.

Tekhne will also have a one-stop centre to offer solutions, and provide customers with a range of products and services for various automotive needs, said Chong. 

Moving forward, Tekhne has plans to establish a research and development (R&D) centre that will focus on electronics, wheels, suspension and braking systems catering to both two- and four-wheelers. 

“We will set up our R&D centre, and control our products, specifications and quality via [the centre]. For the production [side], we will source and identify potential suppliers in the world who can produce and meet our quality requirements,” said Khor.  

“We understand that performance is not determined solely by parts alone. Therefore, we are also venturing into the development of workshop equipment and hand tools,” added Chong.