Honda Malaysia appoints MeGroup as used car dealer

HONDA Malaysia has appointed Catalist-listed MeGroup as an authorised used car dealer under a certified used car programme which will commence on Jan 1, 2022.

The pilot Honda used car programme, which will utilise MeGroup's Honda Cheras dealership outlet, will add on to the dealership business's contribution to overall revenue, MeGroup executive director Carol Wong said in a bourse filing on Monday (Oct 11).

Separately, MeGroup - a component manufacturer and dealer in the automotive industry - will also set up a new facility in Kulim Hi-tech Park in Kedah.

The new facility will house its existing Mazda assembly line and a new manufacturing line, catering to customers in the northern part of Malaysia. By locating the plant nearer to its customers in the north, MeGroup is looking to reduce any latent delivery delays from its main manufacturing plant in Selangor.

The group expects the facility to be completed and operational by the first quarter of fiscal 2023.

Wong said: "Given these developments, we believe that our manufacturing business is poised to recover in 2022."

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MeGroup specialises in "noise, vibration and harshness" (NVH) and non-NVH components primarily for the automotive industry in Malaysia. It also supplies NVH components to Johnson Controls Hitachi - a heating, ventilation and air-conditioning manufacturer.

The group also owns and operates dealerships for car brands such as Peugeot, Honda, Mazda, Hyundai, Ford dealership, Mitsubishi Motors and Proton in Malaysia.

Shares of MeGroup closed flat at S$0.15 on Friday.