Naza Auto to undertake strategic realignment to uplift profitability, liquidity

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KUALA LUMPUR: NAZA Automotive Group (NAZA Auto) plans to undertake a strategic business realignment as part of the group-wide transformation initiative and its renewed focus on core automotive brands.

Group chief executive officer Rizal Jailan said that by sharpening its focus on high-impact, commercially viable business segments, the group is targeting a significant uplift in profitability and liquidity over the next three years

“The realignment focuses on enhancing operational efficiency, long-term profitability, liquidity, governance, and compliance-reinforcing its position in Malaysia’s automotive sector.

“This strategic pivot aims to enhance operational efficiency and building financial resilience

while positioning NAZA Auto to respond dynamically to evolving market conditions,” he said in a statement today.

Rizal said the group will continue to streamline operations to strengthen its core automotive brands and gradually reduce its dependency on lifestyle and niche segments that no longer align with NAZA Auto’s latest objectives.

“To do this, the group has been conducting deep-dive analyses on every brand under its portfolio, to determine the best path forward and we will be looking at return on equity (ROE), with a target of 20 per cent for distributorship business and eight per cent for retail specific business,” said Rizal.

According to Rizal, NAZA Auto is also implementing robust internal controls, enhanced financial reporting measures, and regular compliance audits to promote transparency and strengthen stakeholder confidence across all levels of the business.

“We will continue to expand our footprint in Malaysia’s automotive landscape, particularly through the growth of our core brands.

“Plans are already underway to increase Suzuki Cars Malaysia’s dealership network by more than 100 per cent over the next three years in tandem with the expected yearly increase of Suzuki car sales volume in Malaysia,” he noted.

Rizal said the group is focused on enhancing customer service and experience as customer satisfaction is crucial for better sales performance and ultimately customer’s loyalty to the brand.

“The group is continuously looking out for new brands and opportunities, including electric mobility. As for regional business opportunities, the group anticipates a new operating market within the ASEAN region by this year, focusing on brands it already operates in Malaysia.

“With a clear strategic direction and a renewed focus on operational excellence, NAZA Auto is well-positioned to lead the next chapter of growth in Malaysia’s dynamic automotive industry,” he added.

NAZA Auto has long been a key player in Malaysia’s automotive industry, reaching its 50th year in the industry.
-Bernama
-TheStar