Sime Darby Berhad’s acquisition of UMW – which started with the acquisition of a 61.18% stake in December 2023 adopted by a compulsory takeover supply that led to UMW being a wholly-owned subsidiary of Sime Darby Berhad – makes Sime Darby the main automotive participant in Malaysia immediately.
Previous to the takeover, Sime Darby already has a big presence within the automotive sector in Malaysia and the Asia Pacific area, with a portfolio of luxurious manufacturers, together with BMW, Ford, Hyundai, Porsche, Rolls-Royce, Jaguar and Land Rover.
With the absorption of UMW’s 51% stake in UMW Toyota Motor and 38% share in Perodua, Sime Darby now has an enormous slice of the mass-market pie too – with Toyota being the highest non-national model in Malaysia by gross sales, whereas Perodua is the primary home model and a market chief within the Malaysian automotive trade.
Sime Darby’s acquisition of UMW has confirmed to be a well timed and strategic transfer, amidst the Malaysian automotive sector’s show of resilience, speedy progress and heightened competitors. The latter has intensified of late with the entry of recent manufacturers, making it much more necessary to have scale and ‘energy in numbers’.
Sime Darby continues to advance the method of integrating UMW into its ecosystem. The corporate says that operationally, there are ample alternatives to enhance efficiencies and improve economies of scale, useful resource utilisation and cross-selling.
Additionally, as an enlarged entity, the bigger volumes will construct capabilities throughout the automotive worth chain by strengthening high-margin segments comparable to used automobiles, after-sales and meeting. The latter is a energy of each Toyota and Perodua, which produce autos for each home and export markets.
As a distributor for varied manufacturers outdoors of Malaysia, different areas of potential embrace alternatives to develop the Toyota model in new geographies, and the potential for innovation and progress from cross-sharing of experience in a widened pool of staff.
For automotive patrons and fanatics, this acquisition spells thrilling information, because it guarantees much more decisions and enhanced worth sooner or later. Toyota and Perodua are well-oiled machines which might be on the prime of their recreation, and clients can proceed to anticipate top-notch buyer experiences from these two marques in addition to a lift of experience and sources from Sime Darby.
Electrical autos (EVs) are the speak of the city, however to date in Malaysia, EVs are nonetheless largely bought by the prosperous. Sime Darby, who’s main the cost within the native EV scene and the largest participant within the rising area, is working exhausting to hurry up the shift from ICE to electrical.
With mass market manufacturers Toyota and Perodua within the fold, the Group is well-placed to spearhead Malaysia’s aspirations in direction of a low-carbon mobility future. Sime Darby will even proceed to help the transition to electrical for native fashions – watch this area.
With UMW now onboard, clients can anticipate high quality and innovation that’s forward of the sport from Sime Darby, Malaysia’s main automotive participant.
Trying to promote your automotive? Promote it with Carro.
