Demak Motorcycles will have its own manufacturing plant which is located in Banting Selangor to increase percentage of local motor parts for Demak Brand such as Beetle, Chili Z, City, Duta, Rino, Spider Z, Adventurer, Chili, Fighter, Millus, Rainbow, Spider, Teratai, Twister, Vyking, EVO Z 110, eVO Z 125, Matrix sport Z 110, MTX 125, MTX-P 125, REV 110, REV 125, Spark, EVO, Matrix, matrix sport, MTR 110, Smart, Smart R, Smart sport, smart Z, Cougar, DMR, DMX-R, tricycle II, Wolf, Conquer I, Conquer II, DMX, E-Bike, Quest, Tricycle I, Venture. Demak Malaysia will participate in few international autoshow to promote their motorcycle brand to the world.
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RM27mil investment in Banting to make parts for bikes
KUCHING: DNC Asiatic Holdings Sdn Bhd will invest between RM25mil and RM27mil in a new plant on a 3ha site in Selangor to manufacture some components for its Demak motorcycles. (Motor Demak Malaysia)
Executive director Hu Ying said construction of the plant in Banting was expected to start in the third quarter of this year and operations slated to begin by early 2012.
“The new plant will be involved in metal chassis fabrication and the manufacture of plastic parts for the motorycles.
“This will help raise the local content of the Demak motorcycles to between 75% and 80%,’’ she told StarBiz, adding that the current local contents ranged from 45% to 65%, depending on the models.
Some of the motorcycle models made by DNC Asiatic. (Inset) Hu Ying
DNC Asiatic, a 51:49 Malaysia-China joint venture company, now sources parts like exhaust pipes, absorbers, batteries, tyres, sprockets and seats from local suppliers. The motorcycle engines are from China.
Hu said the company’s present assembly plant in rented premises in Batu Caves would be relocated to the new plant, which would also house its research and development (R&D) unit. The new factory will have the capacity to assemble between 50,000 and 60,000 motorbikes a year.
DNC Asiatic started its business with an assembly plant in Demak Laut Industrial Estate here in 2003. It has since expanded to Pontianak in west Kalimantan, Indonesia, Manila and Zamboanga in the Philippines where there is one assembly plant each.
Hu said the company sold about 25,000 Demak motorcycles last year, up from more than 20,000 units in 2008.
“About 10% of Malaysia’s production is exported to Africa, the Middle East and Maldives,’’ she added. Demak motorcycles would soon make their debut in Nepal.
The eight Demak models, with engine capacity ranging from 50cc to 250cc, are priced between RM3,000 and RM10,000. The DMX150 was Malaysia’s No. 1 seller in the scrambler category last year.
Hu said the company targeted to double its motorbike sales to 50,000 units this year and planned to launch five new models for the local and overseas markets. Some of the existing models will be upgraded.
“This year, we hope to export about 40% of our local production,’’ she said, adding that the company had done indepth market studies, including in European countries. Last year, it intensified efforts to build up its international marketing arm and technical capabilities.
Hu said DNC Asiatic hoped to double its local market share to 10% by 2012. The company has some 250 dealers nationwide who also provide technical and after-sale services.
To promote Demak motorcycles abroad, she said the company took part in the Auto India Show and Gulf Bikes Show in Dubai in the past two months. It will participate in the Bangkok International Auto Show (March 24-April 6) and Taipei International Auto Show (April 12-15). Next year, it plans to launch new models, currently under development, for the European market at the Milan Auto Show.
Hu said the company, with the strong support of Malaysian Trade Development Corp, had participated in several other exhibitions and expositions overseas in the past three years.
She said the company would spend some RM500,000 this year on advertising to promote the Demak motorcycles.