KUALA LUMPUR: Automotive group UMW Holdings Bhd suffered a loss in the second quarter as sales and service centers were temporarily closed during the movement control order (MCO).
But the easing of the restrictions, coupled with the tax reductions on new car sales until the end of the year is expected to benefit the group.
UMW posted a net loss of RM78.4mil in the three months ended June 30 as revenue was halved to RM1.53bil, the company said in a filing with Bursa Malaysia.
UMW is the distributor of Toyota cars and has a big stake in Perusahaan Otomobil Kedua Sdn Bhd, the maker of Perodua cars.
"The Group’s recent launch of an all-new SUV model and added enhancement to the current product offering are expected to contribute positively to the sales performance in the coming quarters," it said The group is also a distributor of heavy equipments in several countries.
"Apart from intense competition, the Heavy Equipment sub-segment continues to face sluggish domestic demand due to delays in the implementation of projects arising from the COVID-19 pandemic and slowdown in some sectors it operates in," it said.
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