Hyundai-Berjaya To Locally Produce Matrix

Hyundai-Berjaya Corporation Bhd plans to locally manufacture the Hyundai Matrix and seek the 50% rebate on excise duties given to national cars for the multi-purpose vehicle (MPV) in a move to turn around its loss-making manufacturing unit Inokom Corporation Sdn Bhd.

Its managing director Datuk Ben Yeoh said the company was in the midst of submitting a proposal to the government on its plan to manufacture the Matrix locally.

He said the local production of the 1.6-litre manual and 1.8-litre automatic Matrix would start in April at Inokom Kulim plant, and is targeted to sell 5,000 units for its next financial year ending April 30, 2005.

The company's proposal for the 50% rebate on excise duties was on a limited production volume of the Matrix, he said.

We are looking at a 50% rebate for the first 10,000 units produced. Anything after that, we have to pay full duties, Yeoh said at Hyundai-Berjaya's transfer of listing to the Main Board of the Malaysia Securities Exchange Bhd yesterday.

The company will invest RM15 million on assembly lines at the Kulim facility and vendor programme to locally produce the Matrix. The Kulim plant was set up to manufacture light commercial vehicles and currently employs 800 workers.

Inokom has been making losses since 1997 due to poor sales of its light commercial vehicles. Last year, its losses amounted to RM10 million while the accumulated losses for the six years were RM95 million, said Yeoh.

Any government preferential treatment will be useful for Inokom. It is an uphill task to turn around the company, he said. The 50% rebate on excise duties is given to national-status cars that carry 40% local content and local brand name.

Yeoh said Hyundai-Berjaya hoped to sell 20,000 cars at an estimated gross turnover of RM1.2 billion by the end of FY2004, with the Atos being its bestseller. He said the company also had plans to introduce the imported 1.3-litre and 1.6-litre Hyundai Getz MPVs in the local market soon.

Hyundai-Berjaya has 80 dealers and 120 showrooms in its distribution network, which Yeoh said was adequate for now to boost sales.