|Malaysia's Demak Motorcycle Venturing Into South Africa And Australia|
|Written by staff|
KUALA LUMPUR, June 27 (Bernama) -- The Demak brand of Malaysian motorcycles will soon be entering the South Africa and Australian markets, as part of its producer's plan to expand their market beyond the Asia.
Hu Ying, executive director of DNC Asiatic Holdings Sdn Bhd, a joint venture company with Malaysian and Chinese interests, said the Demak motorcyle was now evolving into a regional and global brand, following five years of aggressive development.
He said distributorship channel has already been established in New South Wales and a joint venture to set up a local plant in South Africa is expected to be finalised by three months time.
"DNC is expected to hold a majority share in the local plant in South Africa. We expect to supply to the entire African region with the set-up of the plant there," Hu said in an interview recently.
Since DNC commenced its operations in 2002 as a company from Kuching, Sarawak, the company has todate successfully produced and launched more than 30 models of motorcycle products under the Demak brand, covering scooters, mopeds, utility tricycles, sports bikes and leisure series.
It has two factories located in Demak Laut, Industrial Estate, Kuching, and Batu Caves, Selangor.
The company received its ISO certification in January this year.
DNC's deputy general manager (sales and marketing), Hon Swee Leong, said the company will offer competitive pricing for its overseas markets and also offer specific products according to the market.
"Our motorcyles in Australia will be priced much more affordable than other brands. We foresee great impact in the Australian market," Hon said during the interview.
Earlier this month, DNC appointed Australian racer, Warwick J. Nowland as Demak's product and brand endorser to enhance Demak's brand image both at home and abroad, Hon said.
Currently Demak motorcycles are not only getting more and more popular in Malaysia, but they have also gained foothold in the Philippines and Indonesia, Hu said.
With the increasing demand, Hu said the company planned to expand the capacity of both its assembly plants in Kuching and Kuala Lumpur.
Currently, the two plants have an installed capacity of 60,000 units each per annum, Hu said.
Besides being an assembling centre, the plant in Kuala Lumpur, will also have a service centre, marketing office, research and development facility as well as an export centre due to its strategic location in Kuala Lumpur, Hu said.
Even with the current rising fuel cost, Hon said, demand for motorcycles, especially fuel-efficient motorcycles will continue to increase.
The Demak brand of motorcycles are competitively priced, with its producer sourcing components from various countries such as Thailand, China, Malaysia and Taiwan, Hon said.