DNC Asiatic Holdings Sdn. Bhd is a Malaysian motorcycle manufacturer and the firm will be shipping 25,000 units of its Demak model to Cambodia this year, part of its $56 million deal for overseas expansion strategy.
Asian Comfort Investment Co Ltd will be the main authorized distributor in Cambodia. Shipment will be carried out in the second quarter of the year.
According to DNC Asiatic Holdings’ executive director Hu Ying, the firm will be shifting its focus towards the international market.
“Almost half of the current production capacity of 60,000 units per annum at our plant in Olak Lempit in Banting now caters to the export market.
“This year, 25,000 units will be shipped to Cambodia, 5,000 to Myanmar and Bangladesh, while the remaining are for the domestic market,” she said.
Kim Chhay, owner of Kim Chhay Motorcycle in Phnom Penh, noted that many brands have been entering the Cambodian market, noticeably from China, Taiwan, Vietnam and Malaysia.
“The market is a bit tough now. Honda and Suzuki are still the most popular brands, but we are seeing many new brands coming in,” he said.
“I’ve seen many newcomers fail,” he said. “If you want to be successful you need to know your customer: Cambodians care about price, quality and style. If you don’t have these, you will fail.”