Tan Chong Posts Largest Quarterly Loss Amid Rising Competition

Tan Chong Motor Holdings Bhd recorded a net loss of RM90.28 million for the third quarter ended September 30, 2024 (Q3 2024), marking its largest loss in a decade. This is the group’s eighth consecutive loss-making quarter since Q4 2022.

The losses were primarily driven by a RM53.2 million foreign exchange (forex) loss, weaker consumer sentiment, and increased competition, particularly from emerging Chinese automotive brands offering competitively priced models.

Its cumulative net loss for the first nine months of 2024 stands at RM146.1 million, nearly double the RM73.9 million loss reported in the same period last year.

Despite the challenges, Tan Chong remains optimistic about its long-term outlook. The group is focusing on operational efficiencies, cost management, and forging strategic partnerships to strengthen its market position.

Recognizing the rise of Chinese competitors, Tan Chong has secured rights to distribute vehicles from GAC Motor. The company has already launched the GAC Emzoom GS3 and AION Y Plus EV SUV, both competitively priced to attract budget-conscious consumers.

To cater to consumers transitioning from internal combustion engine (ICE) vehicles to electric vehicles (EVs), Tan Chong is also preparing to launch the Nissan Kicks Hybrid, targeting a growing market segment interested in sustainable mobility options.

With new model launches and a focus on strategic initiatives, the group aims to turn around its performance and regain its competitive edge in the automotive market.

Source: The Malaysian Reserve