Sime Darby Motors Expects Losses To Stop In FY2026
KUALA LUMPUR, Aug 27 (Bernama) -- Sime Darby Motors Sdn Bhd expects its losses to cease in the financial year ending June 30, 2026 (FY2026), supported by branch consolidation in China, said managing director Andrew Basham.
Additionally, he said that BMW provided extra support to some of the BMW dealerships operated by Sime Darby Motors in China.
Basham elaborated that the company has been reducing its exposure regarding non-BMW marques in China, with 15 branches already shut and a further six to be closed by April 2026, leaving eight outlets that deal in the Volvo, Genesis and Kia brands.
Basham said that of the 22 BMW dealerships the company operates in China, 13 of the older outlets are profitable, while the nine newer ones are still building up their customer base.
“BMW has provided some extra subsidies, and we believe the situation will improve month by month. We have resolved most of the problems, and there is confidence that we can (stop the losses) in FY2026,” he added.
Basham said this during a media briefing on Sime Darby Bhd’s FY2025 results here today.
Also present at the briefing were Sime Darby Bhd group chief executive officer Datuk Jeffri Salim Davidson, Sime Darby group chief financial officer Muhammad Noor Abd Aziz and UMW division managing director Datuk Mustamir Mohamad.
Sime Darby Motors is the automotive arm of Sime Darby and the only Malaysian BMW dealer in China.
Jeffri said that market conditions for the auto industry have been tough, particularly in China, and Sime Darby is hopeful that measures taken by the Chinese government, including production management and price cuts from Chinese automotive brands, would help stabilise the country’s automotive market.
On the local auto market, Mustamir expects the total industry volume (TIV) to hover between 790,000 and 800,000 units in 2025, with mid-level and mass market volumes expected to remain steady.
“There is still positive news about the local auto industry. If you look at the rise in terms of minimum wage and then the increase in terms of civil servants’ salary, we are expecting to see a continuing increase with regard to volume sales, especially at the mass market and mid-market segment,” he added.
-- BERNAMA