DRB-Hicom to have hybrid cars by 2012

MALAYSIAN automotive conglomerate, DRB-HICOM Bhd, aims to introduce its own hybrid car by 2012 in line with the government’s objective to promote hybrid and electric vehicles and development of related infrastructure. Group director of automotive, Datuk Nik Hamdam Nik Hassan, said the company was currently in talks with three potential partners to manufacture the car and hoped to finalise the deal next year. "Besides the assemble, we want to have our own hybrid car that we can call it HICOM hybrid. It will take 18 to 24 months to have this car to come on stream," he told a media briefing on the company’s automotive business in Shah Alam today. Nik Hamdam, who declined to name the parties, however, said one of them was DRB-HICOM’s existing partner. He said the group’s 70 per cent-owned subsidiary, Motosikal dan Enjin Nasional Sdn Bhd (Modenas), has collaborated with both Petronas Research and Universiti Sains Malaysia to manufacture its electric motorcyle. It is targeted for commercialisation by 2011, he said. Nik Hamdam said demand for hybrid car was increasing although the price was a little bit expensive compared to conventional car as the people's interests were now towards eco-friendly vehicle. DRB-HICOM is a distributor and assembler of prime foreign marques such as Audi, Mercedes-Benz, Honda, Suzuki, Mitsubishi, Isuzu, Mahindra as well as local vehicle such as Proton, HICOM Perkasa and Modenas. He said the company targeted to increase its market share to 22 per cent in 2010 from 19 per cent now with the focus on enhancing performance, especially in the after-sales and service activities. Nik Hamdam said the country’s total industry volume of vehicles was forecast to reach 540,000 units in 2010 from 525,000 units estimated in 2009. The company planned to launch at least 10 new models and upgrades of its various marques and this expected to spur its automotive business next year, he said. "Among them would be the Audi A5 and Audi R8, including two new models from Suzuki," he said. He said DRB-HICOM would pump in RM10 million for advertising and promotion activities by next year to strengthen the Audi brand presence. On the discontinuance of existing joint venture between DRB-HICOM and GM, Nik Hamdam said: "We are having difficulty to agree on certain point of their business model. Both of us have different objectives." Nik Hamdam said although the parties had now agreed to amicably part ways effective Jan 1, DRB-HICOM would continue to supply the spare parts of Chevrolet vehicles until the appointment of a new distributor by GM. "The termination will not have a significant impact on DRB-HICOM's performance as sales contribution from Chevrolet was small at about 1,000-1,300 units per annum compared with its total volume of close to 100,000 vehicles annually," he said. He said DRB-HICOM was looking to bid for stake in Proton once the opportunity arose. "This is something that we always look out for because we are much involved in Proton business," he said. BERNAMA