Naza Auto Announces ‘Strategic Realignment’ Plans

Naza Auto announced earlier today that it will undertake a 'strategic realignment' of its business over the next three-year period.

Earlier today, local automotive conglomerate Naza Auto Group (Naza Auto) announced that it will undertake a ‘strategic realignment’ of its business with the aim of attaining both long-term profitability and liquidity.

The announcement comes in light of the its upcoming half-century milestone. Indeed, the firm has been active in the local industry for 50 years now, and it intends to go on further thanks to the new plans detailed.

The 'realignment' plans sees Naza Auto placing greater focus on both its NZ Wheels Mercedes-Benz dealership arm and its Suzuki cars importers and distributors Naza Eastern Motors (NEM) subsidiary.

"The realignment focuses on enhancing operational efficiency, long-term profitability, liquidity, governance, and compliance – reinforcing our position in Malaysia’s automotive sector. This strategic pivot aims to enhance operational efficiency and building financial resilience,” moots Group CEO Rizal Jailan.

He adds that by sharpening its focus on high-impact, commercially viable business segments, the group is targeting a ‘significant uplift’ in both profitability and liquidity over the next three years. Effectively, the group plans on doing so by focusing on its core brands, and both its Naza Eastern Motors and NZ Wheels arms were mentioned.

Naza Auto is in the midst of growing its Suzuki brand network via NEM, which has charted somewhat moderate success in recent years importing and distributing the Japanese S-brand.

As a refresher, Naza Eastern Motors (NEM) is the authorised importers and distributors of the Suzuki cars brand. Presently, it is already actively expanding the S-brand’s local network by over 100% over the next three years. This comes on top of investment into new digital platforms too.

NZ Wheels, on the other hand, is the group’s long-standing and lucrative Mercedes-Benz dealership arm. Through today’s press release, the group confirmed plans to revamp NZ Wheels’ signature Bangsar showroom to feature the latest Mercedes-Benz corporate identity. It will reopen by the third quarter (Q3) of this year.

NZ Wheels is set to see its signature Bangsar showroom undergo a revamp before reopening later this year in the third quarter (Q3).

While all this talk of ‘realignment’ sounds promising, it seems the fate of some of the group’s other automotive arms, namely Naza Italia Sdn Bhd and Next Bike Sdn Bhd, weren’t addressed. We’ll point out neither were mentioned or noted in the press release the firm issued earlier today.

For the uninitiated, Naza Italia presently serves as importers of niche Italian marque Maserati. Similarly, many will know Next Bike Sdn Bhd by its other name: Ducati Malaysia – importers and distributors of renowned Italian premium motorcycles marque Ducati.

Having lost its Ferrari franchise, Naza Italia remains operation still, albeit just with one brand now - Maserati.

Both underwent significant internal and external changes in recent years. Key instances include Naza Italia losing its Ferrari franchise to rivals Ital Auto Malaysia, as well as the recent and sudden change in top management personnel over at Ducati Malaysia.

Despite no mentions of either subsidiaries, not forgetting the company’s release noting its intent to “gradually reduce our dependency on lifestyle and niche segments that no longer align with our latest objectives,” Carz.com.my has been reliably informed by insiders that both subsidiaries remain secure as part of the group, for now.

Not mentioned or noted too was the group's Next Bike Sdn Bhd arm, better known as Ducati Malaysia, which recently saw personnel changes at its top management level. 

Speculation aside, Naza Auto also did confirm that it is actively seeking “new brands and opportunities, including electric mobility.” The firm even intends to enter a new ASEAN market space this year on top of focusing on its existing portfolio of brands it operates in Malaysia too.

You can take a gander of the group’s press release detailing this ‘strategic realignment’ below and gauge it for yourself. Whilst you’re at it, share your thoughts on this via the comments section below, as well as our social media page…