DRB-Hicom through its wholly owned subsidiary, Edaran Otomobil Nasional (EON) will be expanding its presence in the aftersales vehicle servicing market via a joint venture with the world’s fifth largest fast-fit service brand, Petromin Express. The subsidiary of Saudi Arabia’s Petromin Corp will take 51% share in the JV.
The JV company’s target is to commence pilot operations in January 2023, opening four outlets during the 18-month pilot. Modelled after Petromin Express outlets in Saudi Arabia, the JV aims to offer Malaysian vehicle owners “a unique experience of fast-fit aftersales services with a quick turnaround time”.
Services will be offered to all vehicles, but the company will be targeting post-warranty vehicles aged between five and 10 years, as vehicles under warranty are typically serviced by the OEMs. The JV is aiming to have a slice of the large and growing automotive aftersales market in Malaysia, which in 2021 generated revenue of approximately RM42 billion.
The pilot will enable 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 allow it enter into the lucrative Malaysian aftersales servicing market by partnering with a well-established and trusted corporate brand in the automotive sector. Their vast know-how and experience coupled 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 be offering a new, affordable and convenient service to Malaysians,” said DRB-Hicom group MD Datuk Seri Syed Faisal Albar.
“Petromin actively seeks to collaborate with likeminded industry leaders around the globe and approaches its partnership with DRB-Hicom as a pivot to bringing expertise, networks, products and services to local markets. The possibilities are, therefore, endless,” said Petromin group CEO Kalyana Sivagnanam.
“After decades of transforming the mobility solutions landscape in the Middle East and North Africa (MENA) region, Petromin is looking forward to helping to transforming, pioneering aftersales service experience for the discerning customers in Malaysia and around the globe. We are optimistic that this relationship will yield significant impact on the market in the face of game-changing technological, economic, and societal trends,” he added.
Petromin operates the world’s fifth largest aftersales network with over 700 outlets across Saudi Arabia. The Petromin lubricant brand controls the Saudi market with 40% share, and is exported to over 35 countries in the MENA area and Asia. The group also operates gas stations under the same brand and distributes Nissan cars in the kingdom.