PETALING JAYA: Bermaz Auto Bhd’s (BAuto) plans are to introduce new electric vehicle (EV) models is considered timely, as the group will be able to leverage on the country’s upcoming EV policy.

       Maybank Investment Bank Research (Maybank IB) in a report yesterday said BAuto is set to introduce a new line-up of EVs comprising Kia, Peugeot and Mazda models, in time for Malaysia’s EV policy which is tentatively expected to be announced this month.

       “It plans to bring in Kia’s flagship EV6, Niro and Sportage; Peugeot’s completely-built-up 3008 and 508; as well as the Mazda MX-30, subject to its principal’s approval if Malaysia’s upcoming EV policy is attractive.”

       Maybank IB said BAuto has identified private charging operators to collaborate with on the EV charging infrastructure.

       “Its EV models will have subscription-based plans for batteries, as well as to address cost warranty issues, ” it said, adding that the group remains committed to turning around these new marques by 2022.

       Meanwhile, CGS-CIMB said the new marque expansion will require a gestation period.

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       “We see margin improvements from Mazda operations to be offset by higher operating expenditure related to the new marques. The group is targeting 1, 500 units in sales each for Kia and Peugeot in 2022, driven by new launches such as the new Kia Sportage and Carnival, as well as the Peugeot 2008, 3008 and 5008.

       “We think the sales volume target is achievable given that both Kia and Peugeot had delivered average annual sales of 4, 000 units and 1, 500 units respectively in pre-pandemic times.”BAuto is the franchise holder and sole distributor of Mazda, Peugeot and Kia vehicles in Malaysia, as well as Mazda cars in the Philippines.

       Additionally, CGS-CIMB said BAuto is also in the midst of setting up a new flagship branch for Kia and Peugeot in Glenmarie, which is expected to be ready by the fourth quarter of this year.

       “In the meantime, BAuto is focusing on improving its after-sales service operations in a bid to regain customer confidence in the Kia and Peugeot marques.

       “Although there will be a gestation period of sorts, with BAuto having already had experience in turning around Mazda in Malaysia, we think the process can be expedited.”

       The research house added that BAuto is also still in discussions to finalise the local assembly programme for Kia at Inokom.

       “The group expects to start the first Kia completely-knocked-down programme between March and April 2022.”