KUALA LUMPUR (Aug 27): Bermaz Auto Bhd (KL: BAUTO), which on Tuesday introduced Chinese electronic vehicle (EV) XPeng G6 to the Malaysian market, said the group will prioritise building the brand presence of the latest model over sales or profits in the near term, according to Bermaz group chief executive officer Datuk Francis Lee Kok Chuan.
“The reason why we must choose XPeng is that they do not push for [sales] volumes. A lot of Chinese cars [makers] want to go for volume. But as you know, our infrastructure in Malaysia is not ready yet,” Lee said at a press conference after the launch of XPeng G6.
Bermaz in March secured the rights to sell Chinese EV manufacturer XPeng's vehicles and spare parts in Malaysia, and to provide after-sales services for the Chinese EV.
Bermaz, primarily known for assembling Mazda vehicles and distributing Kia vehicles in Malaysia, previously declined a partnership with an unnamed Chinese EV brand that wanted to prioritise sales volume, according to Lee.
“We want to build a car brand, and we don’t play just on volume. Bermaz is all about customer care and ownership experience,” he responded when asked about the sales target for XPeng G6.
Lee believes that investing in brand building can create a strong foundation that will naturally lead to increased sales volume in the long run.
“We want to build the branding of this XPeng to be a well-sought-after car. Then, after that, the volume will come by itself. No point pushing volume when we are not ready,” he added.
Prior to XPeng G6, Bermaz has been marketing Kia EV6 since June 2022, and launched the EV9 in March this year.
According to data from the Road Transport Department, 115 units of the EV6, which is priced at over RM300,000, and one EV9 unit were sold to date.
Meanwhile, the latest XPeng G6’s price range is at around RM165,000 to RM185,000 — the same price bracket as the BYD Atto 3 and Tesla Model Y.
Following this, Bermaz also plans to introduce XPeng's G9 MPV next year with a target price below RM300,000.
Affin Hwang Investment Bank said the group's management had set an annual sales target of 2,000 units for XPeng’s lineup in 2025.
“We forecast XPeng sales volume to hit 900 units in FY2025 (the financial year ending April 30, 2025),” Affin Hwang said in a note earlier this month.
At the time of writing on Tuesday, shares of Bermaz were up four sen or 1.65% to RM2.46, valuing the company at RM2.88 billion.