KUALA LUMPUR: Hong Leong Industries Bhd
(HLI) plans to ride on the significant growth of the original equipment manufacturer (OEM) and replacement equipment manufacturer (REM) parts for both two and four wheelers in Malaysia, through the launch of its latest auto part innovation arm, Tekhne Sdn Bhd.
Tekhne general manager Chong Chee Kong said the robust market is driven by factors such as growing vehicle sales and aftermarket service demand, as well as an increasing number of enterprises in the automotive products market.
He noted the estimated value in the automotive products market in Malaysia is projected to reach US$8.32bil in 2024, with a compounded annual growth rate of 5.71%, expected from 2024 to 2028.
“In addition, the used vehicle sales in the country are steadily increasing as well, contributing to the growth of the automotive aftermarket service industry, indicating a rising demand for replacement parts.
“At Tekhne, our commitment lies in providing a premium range of products tailored to meet the needs of our customers and in the near future, we aim to set up our own manufacturing footprint as well,” Chong said during the launching of Tekhne yesterday.
HLI group managing director Datuk Dr Jim Khor said the automotive spare parts business’ market potential in the Asean region alone is more than RM350bil. Hence, the company has plans to expand its footprint into the broader Asean region and eventually target global markets with Tekhne.
“This (market potential worth more than RM350bil) underscores the vast potential that exists within the region. Our overarching strategy revolves around a steadfast commitment to offering premium range products, ensuring that our customers receive top notch quality and unmatched performance.
“Currently, our product portfolio encompasses three main components, the accessories component, performance parts and last but not least, fast moving service items.
“Moving forward, we are also keen on venturing into electric vehicle-related products, aligning with the industry’s shift towards sustainable mobility solutions,” he said.
Khor noted Tekhne will first focus on two-wheelers in the initial phase and then make its way into the four-wheeler segment.
“In terms of markets, we will start from the local market which we are more familiar with, before expanding into the Asean and global markets. Given that the brand, Tekhne, is still so new, we will need to develop and establish our brand name and brand equity.
“Nevertheless, concurrently, we will also study the Indonesian and Vietnamese markets, which are the third and fourth largest motorcycle markets in the world. The timing of venturing overseas very much depends on how we do in Malaysia,” he said.
Moreover, in order to drive innovation and maintain its competitive edge, Chong said the company is determined to establish its own research and development (R&D) centre. By investing in its R&D capabilities, the company aims to not only enhance its product offerings, but also pioneer advancements in technology and design.
“Our development will mainly focus on the state-of-the-art systems for electronics, wheels, suspension and braking system, catering to both two wheelers and four wheelers,” he said.
