Kuala Lumpur, 18 Sept 2012 – UMW Holdings Bhd’s wholly owned subsidiary, Lubetech Sdn. Bhd., has been appointed as lubricant supplier to Perodua with a sales potential worth RM60 million over a 5-year period.
The deal will see Lubetech officially supplying automatic transmission fluid, gear oil, brake fluid, radiator coolant and battery water to Perodua Sales Sdn. Bhd., which is responsible for the distribution, sales and after sales services of Perodua vehicles. Perodua appointed Lubetech as the sub-supplier at the beginning April this year. From April to August, Lubetech has supplied approximately 500,000 litres of products to Perodua Sales worth RM4 million.
“As a strategy moving forward, every UMW company has been keeping an eye out for not only new opportunities externally, but also those that are available within the Group”, said UMW President and Group CEO, Datuk Syed Hisham Syed Wazir. He added that today’s agreement is in line with the UMW Group’s business strategy and marks a significant milestone in Lubetech’s journey of growth and expansion.
Lubetech’s sales volume to Perodua is expected to reach RM4.3 million from September to December this year, while sales forecast for 2013 is expected to average RM1 million monthly.
“The deal we seal here today will ensure that our customers are getting the best value-for-money proposition when servicing their Perodua vehicles at our outlets,” Perodua Managing Director, Datuk Aminar Rashid Salleh said at the signing ceremony here. A total of 1.2 million vehicles was handled by Perodua’s service centres in the first 8 months of the year, up 9% from 1.1 million vehicles from the same period last year.
For 2012, Perodua targets to receive some 1.77 million intake compared to the 1.71 million intake recorded in 2011. Perodua has sold over 2.2 million vehicles in its 19-year history, of which 1.4 million units are on the road. Approximately 53% of the 1.4 million current Perodua customers returned to its service centres for maintenance, and to purchase parts and accessories. “The potential for both Perodua and Lubetech is very bright and we look forward to mutually beneficial business for both parties,” Aminar said.
Perusahaan Otomobil Kedua Sdn. Bhd. (Perodua) is an associate company of UMW Corporation Sdn. Bhd., with the latter holding a 38% stake in the second national car company.
Based upon forecasts made by PSSB, the expected volume of consumption for the remaining months from September to December is around 601,782 litres with potential sales of up to RM4.3 million. Barring unforeseen circumstances, sales forecast for 2013 is expected to be around RM1 million per month.