Tan Chong to distribute Nissan CBUs in Cambodia

KUALA LUMPUR: TAN CHONG MOTOR HOLDINGS BHD []'s wholly-owned subsidiary ETCM (C) Pty Ltd, has secured the exclusive rights to distribute Nissan vehicles in Cambodia.

In a statement on Thursday, March 11, Tan Chong said its subsidiary has entered into a distribution agreement with Nissan Motor Co Ltd to solely distribute completely built-up (CBU) vehicles in Cambodia.

ETCM also was given the right to appoint dealers to sell the vehicles and/or perform after-sales services.

"The expansion of the group's 50-year alliance with Nissan Motor into the vehicle market in Cambodia provides a strategic benefit to spread our Nissan business outside of Malaysia to tap into emerging markets," Tan Chong said in the statement on Thursday.

Our local knowledge of the region will add value to Nissan's global brand presence in Asean in line with further Afta market liberalisation," Tan Chong said in the statement.

The total financial commitment for the new Nissan business in Cambodia for the first five years of operation, including setting up of showrooms and working capital, is estimated at US$5 million (RM16.6 million), to be funded by Tan Chong group from its internal sources.

The distribution is expected to commence by 2Q10, with initial sales volume estimated at 200 units a year.

"The new business venture is not expected to contribute significantly to the group's revenue and profit for FY10 ending Dec 31, but is expected to contribute positively to the earnings of the group in the long term," the statement added.