DRB-Hicom, through its wholly-owned subsidiary, Edaran Otomobil Nasional (EON), will expand its presence in the vehicle aftermarket through a joint venture with the world’s fifth largest quick fit brand, Petromin Express. A subsidiary of Saudi Petromin Corp will take a 51% stake in the joint venture.
The JV company aims to start pilot operations in January 2023, opening four stores during the 18-month pilot project. Modeled after Petromin Express stores in Saudi Arabia, the joint venture aims to offer Malaysian vehicle owners a “unique experience of fast after-sales services with fast turnaround times”.
The services will be available for all vehicles, but the company will target post-warranty vehicles between 5 and 10 years old, as under-warranty vehicles are typically serviced by OEMs. The JV aims to have a share of the large and growing automotive aftermarket in Malaysia, which in 2021 is expected to generate revenue of approximately RM42 billion.
The pilot will allow management to derive a longer strategic roadmap for the business, including capital requirements for expansion, the companies said in a joint statement.
“Petromin’s collaboration with DRB-Hicom will enable it to enter the lucrative Malaysian aftermarket market by partnering with a well-established and trusted corporate brand in the automotive sector. Their vast know-how and experience combined with DRB-Hicom’s market intelligence and extensive customer reach will create an ideal synergy that will propel this partnership to great heights. At the same time, we are very excited to offer a new, affordable and convenient service to Malaysians,” said DRB-Hicom Group MD Datuk Seri Syed Faisal Albar.
“Petromin actively seeks to collaborate with like-minded industry leaders around the world and approaches its partnership with DRB-Hicom as a pillar for providing expertise, networks, products and services to local markets. Hence, the possibilities are endless,” said Petromin Group CEO Kalyana Sivagnanam.
“After decades of transforming the landscape of mobility solutions in the Middle East and North Africa (MENA) region, Petromin looks forward to helping transform the pioneering aftermarket service for discerning customers in Malaysia and around the world. We are optimistic that this relationship will have a significant impact on the market in the face of changing technological, economic and societal trends,” he added.
Petromin operates the fifth largest aftermarket network in the world with over 700 sales outlets in Saudi Arabia. The Petromin brand of lubricants controls the Saudi Arabian market with a 40% share and is exported to over 35 countries in the MENA region and Asia. The group also operates petrol stations under the same brand and distributes Nissan cars in the kingdom.