Tan Chong is no stranger to the dealership of foreign car in Malaysia. Tan Chong also lengthen its business arm by venturing into other field such as financial services, property and education services. Tan Chong group sees the market in a packet where such industries are interconnected with each other which we can observe from automobile assembling to after sales service and nurturing its workers with skills and knowledge. Designs of Nissan is never inferior compared to the others. By capturing the niche of upper middle class with its world class features, Nissan is undoubtedly standing firm challenged by different factors. When we look into Nissan itself, its brand is well established with its sports car featuring in blockbuster movies which to me, is undoubtedly a strong publicity advantage. Also, with its own financial sector, Tan Chong is able to provide extra options for its customer such as leasing where there is tax break element when it is utilized for business use.
When it comes to automobile industry in Malaysia, foreign brand encounters disadvantages as in heavy duty imposed which ultimately boost up the price. Price war is eventually scrolling in as local players are launching low deposits with their already low prices. Also, judging from the statement of the new Proton chairperson, it is likely that heavy duty will be continuously imposed to protect the local players. Furthermore, Malaysia government encourages mostly on the sale of locally assembled energy efficient vehicles where the rest will left vulnerable to heavy duty and challenges.
Based on the disadvantages above, it disregard my interest towards such well-managed company. It reminds me of the textile business hold by Berkshire Hathaway in the 1970’s where good management must be tied with good business in order to strive. Filtered out.
Stock: TCHONG Code: 4405
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