Tan Chong Motor Holdings Posts 12% YoY Revenue Drop, Pins Recovery Hopes on GAC
Tan Chong Motor Holdings Bhd reported its seventh consecutive quarterly loss, with a net loss of RM40.11 million for the second quarter (Q2) ending June 30, 2024. This marks a significant increase from the RM18.13 million loss recorded in the same period last year.
Additionally, revenue for the quarter declined 12% year-on-year, falling to RM545 million from RM619 million.
Tan Chong, which primarily assembles and distributes Nissan vehicles in Malaysia and has interest in other brands like Subaru and Renault, is however optimistic that new vehicle launches over the next 24 months will help it recover some lost market share.
The group had recently placed hopes that Chinese brand GAC and AION, which it took distributorship for in Malaysia, will be the key to getting the group out of the red. Even so, the Subaru assembly plant in Segambut has been repurposed to CKD GAC brand of products.
Its Nissan product introduction in the recent years has also seen a massive decline with no new models being launched in Malaysia where the brand had been just focused on rolling out its ageing offering. Case in point here being the X-Trail SUV and Almera sedan.
Furthermore, the company, which also sells Renault cars in Malaysia, stated that it anticipates improved financial performance in the upcoming quarters due to additional contract assembly activity. Tan Chong is trying to cut expenses and simplify its business practices concurrently.
Additionally, to increase factory utilisation, the company is counting on Vietnam's King Long bus and TQ Wuling light commercial pick-up sales to remain robust. Positive effects from the introduction of the GAC models are also anticipated in Vietnam, where the company has cautious optimism on its performance.
Tan Chong's net loss during the first half (H1) of 2024 increased to RM55.83 million, almost twice as much as the RM23.20 million loss for the same period in 2023. Additionally, revenue decreased, falling 10.5% on an annual basis to RM1.11 billion.
The company’s earnings before interest, tax, depreciation, and amortisation (Ebitda) in its automotive division plummeted 91% to RM5.8 million, due to lower revenue, reduced margins from a weaker Ringgit, and lower foreign exchange gains. The ebitda from its financial services arm, which provides hire purchase and insurance, also fell 37% to RM6.8 million amid declining vehicle sales.
Despite these challenges, Tan Chong’s retained earnings stood at RM1.47 billion at the end of June 2024. However, the company did not declare any dividends. Interestingly, shares of Tan Chong closed up 1.5 sen or 2.08% at 73.5 sen ahead of the results announcement, giving the group a market capitalisation of RM490.54 million.
Written By
KS
More then half his life spend being obsessed with all thing go-fast, performance and automotive only to find out he's actually Captain Slow behind the wheels...oh well! https://www.linkedin.com/in/kumeran-sagathevan/
JPJ Running Numbers
KUALA LUMPUR
VPM4116
SELANGOR
BSG7219
JOHOR
JYE4115
PULAU PINANG
PRT351
PERAK
ANY6350
PAHANG
CFC9861
KEDAH
KGB6179
NEGERI SEMBILAN
NEG6241
KOTA KINABALU
SJL9999*
KUCHING
QAB8277L
Last updated 01 Aug, 2025
Fuel Price
Petrol
RON 95
RM 2.05
RON 97
RM 3.17
-0.04
RON 100
RM 5.00
VPR
RM 6.23
Diesel
EURO 5 B10
RM 2.91
EURO 5 B7
RM 3.11
Last updated 31 Jul, 2025
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