Times continue to be rough for Tan Chong Motor Holdings, with the group reporting a net loss of RM90.28 million for the third quarter of this year, its largest loss in a decade. In a filing to Bursa Malaysia last week, it said the result was driven by a RM53.2 million foreign exchange loss, softer consumer sentiment and a increasingly competitive business landscape brought about by emerging Chinese automotive brands.
The Q3 performance comes on top of a net loss of RM40.1 million in the preceding quarter, and marks the eighth consecutive quarter that the group has been in the red, since the fourth quarter of fiscal year 2022, according to various news reports.
This has contributed to a net loss of RM146.1 million for the first nine months of Fiscal year 2024, which is nearly double the RM73.9 million it recorded in the same period in 2023. Meanwhile, quarterly revenue fell 28.8% to RM462.66 million from RM649.82 million, while revenue in the first nine months fell by 16.8% from RM1.89 billion to RM1.57 billion.
In its filing, the company said that the automotive landscape in Malaysia for 2024 shifted and was marked by an ongoing rise in competition, particularly from Chinese brands that are expanding their presence. It said that these brands are offering models with highly competitive pricing and increasing the competitive pressure on local manufacturers.
Despite the challenges, the group said it remained positive on the long-term prospects of its businesses, stating it had strong fundamentals to stay resilient. It said it would focus on improving business performance, driving better operational efficiencies, efficient cost management and cash flow management to put it in a better position to deliver long-term operational and financial sustainability.
It said that it plans to accelerate the introduction of new models in the coming quarters to strengthen its market position. Having been quiet for a good while on the product front, the arrival of the Nissan Kicks e-Power compact SUV later this month should hopefully see it regain some traction in the market.
The group, which is involved in distributing and assembling Nissan vehicles in Vietnam, Myanmar, Cambodia and Laos, has also begun exporting Malaysian-assembled vehicles to overseas markets for the first time, with the C27 Nissan Serena S-Hybrid making its way to Thailand. Of course, Nissan itself isn’t in the pink of health, so it remains to be seen how it all pans out.
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