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Malaysian motorcycle maker breaks into Cambodian market

May Kunmakara / Khmer Times Share:
wikimedia/Uwe Aranas

DNC Asiatic Holdings Sdn Bhd, a Malaysian manufacturer of motorcycles, will ship 25,000 units of its Demak model to the kingdom this year, in a deal worth $56 million that is part of its overseas expansion strategy.

Its Cambodian partner Asian Comfort Investment Co Ltd will be the main authorised distributor in the kingdom, as reported on Wednesday by New Straits Times.

The shipment will be carried out during the second quarter of the year.

Hu Ying, DNC Asiatic Holdings’ executive director, said that with the Malaysian motorcycle market now saturated, her company is turning its attention overseas.

“Almost half of the current production capacity of 60,000 units per annum at our plant in Olak Lempit in Banting now caters to the export market.

“This year, 25,000 units will be shipped to Cambodia, 5,000 to Myanmar and Bangladesh, while the remaining are for the domestic market,” she said.

Kim Chhay, owner of Kim Chhay Motorcycle in Phnom Penh, told Khmer Times that a lot of new brands are penetrating the local motorcycle market attracted by its fast expansion in recent years.

“The market is a bit tough now. Honda and Suzuki are still the most popular brands, but we are seeing many new brands coming in,” he said, adding that most imported motorcycles come from China, Taiwan, Vietnam and Malaysia.

“I’ve seen many newcomers fail,” he said. “If you want to be successful you need to know your customer: Cambodians care about price, quality and style. If you don’t have these, you will fail.”

Cambodia is the third foreign market targeted by DNC Asiatic Holdings, following Myanmar and Sri Lanka.

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