USF-Hicom expects steady vehicle sales

BY ELAINE ANG

USF-HICOM (M) Sdn Bhd, authorised importer, assembler and distributor of the Mitsubishi range of vehicles in Malaysia, expects to maintain its sales at 8,500 Mitsubishi vehicles this year, according to managing director Datuk William Chong.  

“We foresee sales to come mainly from models like the Mitsubishi Storm, Airtrek, Pajero and the light commercial vehicles,” Chong told StarBiz. 

Datuk William Chong

On the reason for such a conservative forecast, Chong believes that the sales of the motor industry last year were overheated due to high margins and low interest rates offered for car loans.  

“We expect total market sales for 2003 to be lower than last year, especially with the Iraq war and Severe Acute Respiratory Syndrome (SARS) affecting the economy and making consumers more cautious about spending,” he said, adding that according to the Malaysian Automotive Association, vehicle sales dropped in the first three months of the year compared to the same period in 2002. 

According to Chong, USF-Hicom is on track to maintain its target as the number of vehicles sold and registered from January to March already totalled 1,847 units. 

Chong said the company had recorded a 44% jump from 5,800 units sold and registered in 2001 to 8,368 units in 2002.  

He said the number one income generator for the company last year was the Storm with 4,881 units, followed by the Pajero with 1,695, while the remaining 1,792 consist of the Airtrek and other models. 

“The Airtrek, introduced into the Malaysian market in February last year, has also done pretty well. As at March 31, our sales totalled 609 units,” he said. 

Airtrek Turbo

Chong said the company was now the market leader for the big engine 4x4 wagon represented by the Pajero with a 73% market share last year. The Storm also did well last year, capturing a 48% share of the 4x4 pick-up market.  

“We are confident of maintaining our market share for these two models as statistics have shown that our market share for the Pajero and Storm were 70% and 45% respectively for the first quarter of 2003,” he said. 

On expansion plans, Chong said, one of the company's market strategies was to further expand its market penetration in east Malaysia by widening its distribution network there.  

“Of all the Mitsubishi models, the Storm is the most popular in east Malaysia. We intend to open three more branches and three dealer outlets to strengthen its market presence there,” he said. 

At present, USF-Hicom has 14 branches and 58 dealer outlets nationwide. 

Chong said USF-Hicom also planned to distribute Mitsubishi passenger cars in the country.  

“They were phased out 21 years ago but we want to re-introduce the cars into the market. We have submitted our proposal and are waiting for a reply from Japan,” he said, adding that the company was looking at distributing six models in the passenger car category including the Lancer, Colt and Evo VIII. 

Mitsubishi Storm

“If the project materialises, it would be next year's programme,” he said, declining to elaborate further. 

Chong said the company also aimed to introduce a new model that was launched in Japan recently, the Mitsubishi Outlander, a 2,500cc wagon into the local market this year. 

“Competition is very keen now and we cannot stop our competitors from bringing in new models. We need to always come up with new strategies to counterattack or compete with them,” he said, adding that USF-Hicom's main emphasis had always been on brand name, specifications and price. 

USF-Hicom distributes 17 Mitsubishi models in the country, the latest being the Airtrek Turbo. 

Chong said most of the Mitsubishi models distributed by the company were assembled locally at its plant in Pekan. 

“If demand and volume are sufficient, we may start assembling the Airtrek by next year,” he said, adding that it would take about 12 months for all its facilities to be ready for production. 

On the outlook of the motor industry, Chong said, vehicle prices would not drop even after the implementation of the Asean Free Trade Area (Afta) as other duties like excise duty were expected to be imposed on the vehicles. 

“Going forward, people would go for smaller cars, sports utility vehicles, light commercial vehicles or even pick-ups as these vehicles would have lower duty,” he said. 

Chong, who has 30 years of experience in the motor industry, has been with the DRB-Hicom group since 1982. In 1987, he was transferred to USF-Hicom as general sales manager and promoted to managing director in 1995. 

Besides helming USF-Hicom, he is also the group director for automotive distribution of DRB-Hicom. The secret to Chong's success: hard work and the ability to perform.  

Described by his staff as energetic, focused and very committed towards his work, Chong has no problem receiving calls from the office at all hours of the day or night. He believes people are his main assets and expects his staff to give their best in everything that they do.  

“I learned a lot from the late Tan Sri Yahya Ahmad (former chairman of DRB-Hicom Group) and my management style is very much influenced by him,” he said.