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Sime Darby presses ahead with UMW integration journey - it's now the leading auto player in Malaysia - Mosewl.com

Sime Darby presses ahead with UMW integration journey – it’s now the leading auto player in Malaysia

Sime Darby Berhad’s acquisition of UMW – which began with the purchase of a 61.18% stake in December 2023 followed by a mandatory takeover offer that led to UMW being a wholly-owned subsidiary of Sime Darby Berhad – makes Sime Darby the leading automotive player in Malaysia today.

Prior to the takeover, Sime Darby already has a large presence in the automotive sector in Malaysia and the Asia Pacific region, with a portfolio of luxury brands, including BMW, Ford, Hyundai, Porsche, Rolls-Royce, Jaguar and Land Rover.

With the absorption of UMW’s 51% stake in UMW Toyota Motor and 38% share in Perodua, Sime Darby now has a big slice of the mass-market pie too – with Toyota being the top non-national brand in Malaysia by sales, while Perodua is the number one domestic brand and a market leader in the Malaysian automotive industry.

Sime Darby presses ahead with UMW integration journey – it’s now the leading auto player in Malaysia

Sime Darby’s acquisition of UMW has proven to be a timely and strategic move, amidst the Malaysian automotive sector’s display of resilience, rapid growth and heightened competition. The latter has intensified of late with the entry of new brands, making it even more important to have scale and ‘strength in numbers’.

Sime Darby continues to advance the process of integrating UMW into its ecosystem. The company says that operationally, there are ample opportunities to improve efficiencies and enhance economies of scale, resource utilisation and cross-selling.

Also, as an enlarged entity, the larger volumes will build capabilities across the automotive value chain by strengthening high-margin segments such as used cars, after-sales and assembly. The latter is a strength of both Toyota and Perodua, which produce vehicles for both domestic and export markets.

Sime Darby presses ahead with UMW integration journey – it’s now the leading auto player in Malaysia

As a distributor for various brands outside of Malaysia, other areas of potential include opportunities to grow the Toyota brand in new geographies, and the potential for innovation and growth from cross-sharing of expertise in a widened pool of employees.

For car buyers and enthusiasts, this acquisition spells exciting news, as it promises even more choices and enhanced value in the future. Toyota and Perodua are well-oiled machines that are at the top of their game, and customers can continue to expect top-notch customer experiences from these two marques as well as a boost of expertise and resources from Sime Darby.

Electric vehicles (EVs) are the talk of the town, but so far in Malaysia, EVs are still largely purchased by the affluent. Sime Darby, who is leading the charge in the local EV scene and the biggest player in the growing space, is working hard to speed up the shift from ICE to electric.

Sime Darby presses ahead with UMW integration journey – it’s now the leading auto player in Malaysia

With mass market brands Toyota and Perodua in the fold, the Group is well-placed to spearhead Malaysia’s aspirations towards a low-carbon mobility future. Sime Darby will also continue to support the transition to electric for local models – watch this space.

With UMW now onboard, customers can expect top quality and innovation that’s ahead of the game from Sime Darby, Malaysia’s leading automotive player.

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