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MeGroup opens Hyundai dealership in Klang, wins manufacturing contract

CATALIST-LISTED MeGroup has opened its first Hyundai dealership centre and also secured 4S approval for its Honda dealership in Cheras, the Malaysia-based automotive parts maker and dealer announced on Monday.

The Hyundai 3S centre in Bandar Bukit Raja in Klang, Selangor, officially began operations on Sept 28, after MeGroup was awarded the dealership in April. It is the only Hyundai outlet in Klang, and boasts a premium customer lounge and a quiet business centre with WiFi for customers, MeGroup said on Monday.

MeGroup had announced in April that the Klang outlet will offer new models by the South Korean carmaker, such as the Elantra, IONIQ, Tucson, SantaFe and Starex.

As for the Honda dealership in Cheras, Kuala Lumpur, MeGroup has completed its upgrading works and been authorised to upgrade it to a 4S centre. This means the outlet is now equipped to carry out body and paint repair services as well as process all accident insurance claims. It was previously a 3S (sales, service and spare parts) centre, selling new cars, providing after-sales car servicing, and selling spare parts and accessories.

Earlier this month, MeGroup had raised its stake in its subsidiary MJN Motors, which operates the group’s Honda dealerships in Malaysia, to 80 per cent.

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Meanwhile, in the manufacturing segment, MeGroup subsidiary Menang Nusantara Sdn Bhd has snagged a contract to produce and supply noise, vibration and harshness (NVH) and non-NVH components to an assembler for a major carmaker in Malaysia.

Those components are currently under development, and MeGroup aims to start supplying them in 2020, it said on Monday. The manufacturing project will continue until the end of the car model’s production lifecycle.

As part of the expansion of its dealership portfolio, MeGroup’s next outlet will be its first Ford dealership, said Jeffrey Wong, head of group expansion and strategy and head of dealership.

“We will also continue to strive to achieve 4S status for all our dealerships, so that we may offer the whole spectrum of services for our customers,” Mr Wong added.

Shares of the company last traded at S$0.19 on Oct 4.

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