FRANKFURT, Oct 30 (Bernama) -- A high-powered marketing mission of Malaysian suppliers of auto parts and components will be in Germany and France on a week-long visit from Sunday to scout for business prospects, as more and more European car manufacturers seek foreign Original Equipment Manufacturers (OEMs) and Original Design Manufacturers (ODMs).
Malaysia, with a strong auto parts and components supplier base, has good potential to make a strong impact on car manufacturers in Germany such as Volkswagen, Mercedes-Benz and others that rely on a steady supply of quality products for their cars.
"We've already set up meetings for the suppliers with their German counterparts. We're confident the visit will generate good business for Malaysian suppliers on a long-teRMbasis," said Mohamad Sabri Ab Rahman, the Malaysian Trade Commissioner in Frankfurt, who is Malaysia's point man in-charge of the mission's visit to Germany.
The visiting group comprises 12 companies engaged in a wide range of automotive parts and components from hi-tech sensitive parts to components.
Sabri said the mission's primary aim is to help Malaysian automotive parts' and components manufacturers to expand their export market andGermany and France are two attractive markets.
The visit will also provide insights for Malaysian companies on the latest technology and automotive market trends.
In Germany, the delegation will visit Stuttgart and Frankfurt. Stuttgart is home to leading car manufacturers, particularly the Mercedes-Benz Group, which has huge operations in and around that city, said Sabri in an interview with BERNAMA.
The Malaysian External Trade Development Corporation (MATRADE) had arranged for one-on-one business meetings for the Malaysian suppliers with their potential buyers.
The group includes Gallant Automotive Industries (M) Sdn Bhd from Selangor, which produces radiators and condenser fan motors, Carpets International Malaysia Manufacturing Sdn Bhd, also from Selangor, which manufactures interior trims, noise vibration products, parts and accessories for automotive replacement market, including lubricant oil), Amalgamated Batteries Manufacturing of Kuching (automobile batteries, conventional deep cycle and maintenance-free batteries).
Other suppliers are Rubber Products of Melaka (automotive rubber products, radiator, fuel, heater and vacuum hoses, rubber-moulded parts, exhaust hangers and rubber seals.
Kossan Rubber Industries Bhd of Selangor (hi-tech rubber products for wide range of applications); Tech Outlook (M) Sdn Bhd from Selangor (body kits, anti-lock braking system and design and development of products.
Tan Lan Holdings (M) Sdn Bhd from Perak, which produces motorcycle and bicycle parts); First Malaysian Coating Sdn Bhd from Petaling Jaya (coating solutions for automotive, marine, aerospace and industrial sectors); and KCL Metal Industries Sdn Bhd of Selangor (automotive components, accessories, automobile suspension system), Proton Vendors' Association from Selangor (interest group promoting closer ties among vendors and between vendors and Proton).
Sipro Plastic Industries Sdn Bhd of Selangor (plastic parts and components for automotive and electronic industries); Guppy Plastic Industries Sdn Bhd from Penang (plastic parts and components for automotive, electronic, office equipment, medical and telecommunication industries); and Schwenhah Sdn Bhd of Kuala Lumpur (automotive accessories and engine improvement products).
Sabri said, "There is good potential to contract business from the German automotive sector which sources about 80% of its parts and components from overseas suppliers.
"In terms of contribution to the total production cost of a car, some 60 to 70 percent of the value is accounted for by systems and modules suppliers.
"The German industry depends on innovations from these suppliers to manage its cost and value-added attributes," he said.
According to information received from the Malaysian Trade Commission in Frankfurt, Germany is expected to produce about six million vehicles next year. This figure includes both passenger and commercial vehicles.
The value of Malaysia's exports of automotive parts and components in 2008 amounted to US$4.35 million over US$4.09 million in 2007.
Malaysian companies have also been supplying automotive parts and components to Japanese and European car manufacturers.
While Malaysian automotive parts and components are appreciated for their quality, Malaysia faces fierce competition from India which has become a dominant force in the spare parts and components sector.
It is not unusual to see huge delegations of over hundred exhibitors from India showcasing their wares at the Frankfurt Automechanika Trade Fair, the world's largest event for autoparts and components segment.
On the other hand, despite its much lower costs, China has never posed a threat to Malaysia as most German buyers nurse doubts about the quality of the former's products.
Products from China also lacked innovative attributes compared to products from other countries including Malaysia and India. (By MANIK MEHTA/Bernama)
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