Yesterday I had the privilege to attend the media briefing of Mercedes-Benz Malaysia's (MBM) 2018 performance report. What we found out was that the Mercedes-Benz marque remains the No.1 luxury lifestyle brand here in Malaysia. The brand basically kept keeping things fresh with innovative mobility solutions, exciting products and engaging experiences. It all paid off, as for 2018, Mercedes-Benz delivered a record 13,079 units of Mercedes-Benz vehicles to its customers. This meant a 2.4% market share of the Malaysian Total Industry Volume (TIV). This, from a premium brand. Amazing.
It essentially showed that 2018 was an incredible year for the automotive industry. This was taking into account the roller coaster ride which was the Malaysian general elections held in the middle of the year, the cautious sentiments of the Malaysian consumer leading up to the elections and then, post elections, the Zero GST period or tax holiday which then led a sales avalanche for almost every car maker doing business in Malaysia. Of course, there was another downward trend when the tax holiday ended. Consumers stopped buying for a short period but then things suddently took off again during the last two months of 2018. It was a real ride for everyone in the industry including Mercedes-Benz Malaysia.
While their organised nature of things ensured that sales and after sales performed as seamlessly as possible, it was quite a challenging period for them. Note that MBM also went through a period where vehicle stocks were depleted due to massive sales numbers and they had the challenge of keeping up with demand. A good problem to face nonetheless. Of course, the well-oil nature of the company kept things sailing smoothly.
Part of the amazing levels of performance is down to the structure of the brand here. Ever since 2003, MBM has invested in over MYR 1 billion. This is where the Mercedes-Benz brand reaffirms commitment to the Malaysian market and customers to deliver the Best Products and Best Customer Experiences. The infrastructure and human talent which they have ensure a seamless customer experience which essentially spreads by the confidence of their customers in their products, after sales experiences which includes a wide variety of lifestyle events which cater to various age groups and also various lifestyle niches.
There is also a product line-up which seems to cater to a varied number of customers, end-to-end financing experience elevated with Mercedes-Benz Services Malaysia financing four out of every 10 vehicles, contributing to a total financing portfolio of MYR 2.7 billion as well as after sales or customer services with over 148,800 vehicles serviced by MBM. When you sell 13,079 vehicles, you need to ensure that each and every one of the vehicles sold over the past several years would have a smooth service at every authorised Mercedes-Benz service centre or Autohaus. The upgrading and expansion of current outlets as well as adding new dealerships throughout the country has ensured that after sales kept up with the sales performance of the brand.
All of this and more. Check out the official press release below for more details. Quite an amazing performance for 2018 in my opinion. For 2019 from what I have garnered from small talk with the management of MBM is that they would be continuing their overall game plan with a multitude of new car launches (from the looks of things, we are going to see some interesting cars like the upcoming Mercedes-AMG A35 & A45 and more), new customer initiatives and experiences as well as continuing their expansion and upgrading of Autohauses. Of course, they are optimistic, but they are also prepared to face any contingencies.
Let's just take for example the recent switch by the Malaysian Government's policies on Energy Efficient Vehicles especially on hybrid ones. The Malaysian Government had essentially looked at EEV on a holistic level and not just on hybrids, so 2018 actually saw MBM almost instantly switching production of their local EEV hybrids like the C350 e and the S400 e plug in hybrids to the C300 and the S450. Somehow, they are quick to respond to changes. Customers actually benefit from this as the will actually get the best in terms of vehicle pricing suited to the current tax breaks and excise duties.
The official Press Release is below:
(Centre) Mercedes-Benz Malaysia, President and CEO, Dr Claus Weidner with
(From left)
o Vice President, Customer Services, Mercedes-Benz Cars, Jeffrey Simon;
o Vice President & CFO, Head of Finance & Controlling Mercedes-Benz Passenger Cars, Hans-Joerg Mehl;
o Vice President, Sales and Marketing, Passenger Cars, Mark Raine and;
o Mercedes-Benz Services Malaysia, Managing Director, Mike Ponnaz.
Kuala Lumpur, 9 January 2019 – 2018 is the fifth consecutive record year
for Mercedes-Benz Malaysia (MBM). The distinctive three-pointed star shined
brightly in 2018 with an extraordinary performance of 13,079 vehicles sold,
translating into a 9% overall growth. Capturing a 2.4 per cent market share*,
the achievement cements Mercedes-Benz as the undisputed luxury lifestyle
brand in Malaysia and the global arena.
MBM President and CEO, Dr Claus Weidner said: “2018 was another
successful year in the 15 year-long extraordinary journey for Mercedes-Benz
Malaysia and the Mercedes-Benz brand. Our efforts to invigorate the brand
experience for our increasingly diverse fans have been fruitful and we are
happy to retain our position as the number one luxury lifestyle brand. Our
great combination of Best Products, Best Service and Best Customer
Experience continues to drive the brand’s success and we assure our
customers and fans that this will continue to be our focus.”
He added, “Offering a seamless customer experience to our valued
customers is a core value that we uphold and we believe this is important to
ensure sustainability of the business. The mantra has always been about
‘Putting the customer at the centre of our activities’. ”
Commenting on the 2018 performance, Vice President of Sales and
Marketing at MBM, Mark Raine said, “We are extremely proud of our history-
making performance for 2018. We delivered 13,079 Mercedes-Benz Cars to
customers, further cementing our position as the leading premium brand in
Malaysia. Our fresh-faced product portfolio with the locally assembled
Mercedes-AMG C 43 and GLC 43, and all-new Mercedes-Benz A-Class has
succeeded in keeping our fans excited about the brand. Furthermore, we
gave the market a taste of the future with the EQ Concept this year. We
intend to keep the momentum going with more exciting events and products
in 2019.”
In 2018, MBM’s performance was spearheaded by the locally produced
limousines, which recorded 7,910 units sold. Following closely were the
Mercedes-Benz SUVs with 2,613 units sold, particularly by the locally
produced Mercedes-Benz GLC 200 and GLC 250. The German marque
expects continued positive demand for this segment. The Mercedes-Benz
compact cars recorded a total of 1,875 units sold, while the Mercedes-Benz
Dream Cars, recorded a total of 662 units sold, a 77% growth for the three-
pointed star’s brand shapers.
The 20 vehicle launches spread throughout 2018 sustained the healthy
momentum of demand for Mercedes-Benz vehicles. The key launches
included the locally-assembled Mercedes-AMG C 43 and GLC 43, Mercedes-
AMG E 53 Sedan and Mercedes-AMG E 53 Coupé, its New Dream Cars
Collection, the New Mercedes-Benz S-Class Family, and the all-new
Mercedes-Benz A-Class and new generation C-Class.
Additionally, MBM showcased the brand’s innovative edge with the EQ
Concept premiere in Kuala Lumpur – a first in Southeast Asia. The milestone
has positioned Mercedes-Benz as a reinventer of the automotive industry
with the EQ brand, pioneering the direction and setting the stage for future
mobility.
Going hand-in-hand with its Best Products, MBM spearheaded engaging
activities to match a diverse fan base aligned to its overall Best Customer
Experience commitment. MBM engaged with fans through events like Urban
Hunting x ULTRA Singapore 2018, Mercedes-Benz Fashion Week in Kuala
Lumpur, the MercedesTrophy and introduction of the AMG Owners Club
Malaysia (AOCM) which are aimed at elevating the AMG experience with
exclusive access to all things AMG for owners.
Complementing the seamless ownership experience, Mercedes-Benz
Services Malaysia (MBSM) recorded a steady growth in line with the three-
pointed star’s progress. For the year, MBSM financed four out of every 10
Mercedes-Benz vehicles sold and has a solid servicing portfolio of MYR 2.7
billion**
MBSM’s commitment to innovative peace-of-mind financing and insurance
solutions was further embodied with the introduction of new products like
AgilityPlus and Lease2Go.
MBM’s emphasis on upholding Best Customer Experience at every
touchpoint translated into the highest Customer Satisfaction Index (CSI)
After-sales score in history. The achievement has demonstrated the brand’s
excellence in managing the high volume of Mercedes-Benz vehicles by
maintaining high levels of customer satisfaction.
The passion and expertise behind the Best Customer Experience brand
promise was showcased once again in this year’s Mercedes-Benz SEA II
Skills Competition. 2018 marked the competition’s 10th anniversary and first
year opening its doors to the South East Asia II (SEAII) region. A total of 613
Customer Services Professionals and Advanced Modern Apprenticeship
finalists competed for the title of best technician, service advisor and process
specialist within the Mercedes-Benz network.
The celebrated technicians and customer services personnel make up the
backbone of MBM’s 35 dedicated dealerships nationwide. In tandem with its
growing fan base, MBM launched five new touchpoints last year including the
NZ Wheels Klang Autohaus, Hap Seng Star Setia Alam Autohaus and
Asbenz Stern Kuantan Autohaus among others. Trained with a view of
keeping customers at the centre, every touch point is key in delivering the
Best Products and Best Customer Service throughout the entire customer
journey. To date, Mercedes-Benz has the largest premium dealer network in
the country.
Recognising the dedication, passion and hard work of its dealer partners,
MBM held the inaugural Dealer of the Year awards in March 2018. The award
is poised to be an annual event aimed at rewarding dealerships for
operational excellence and commitment to delivering the Best Customer
Experience.
Another exciting offering introduced in the network for 2018 was the
Mercedes-Benz Certified pre-owned vehicle programme. The programme
represents the highest quality in used cars from Mercedes-Benz worldwide,
previously known as Proven Exclusivity.
Mercedes-Benz as a brand has invested over MYR 1 billion in the Malaysian
market since 2003 and MBM’s production plant in Pekan, Pahang
demonstrates its long-term position and consistent commitment to the
Malaysian economy. In FY2018, the production plant produced 9,854
vehicles, including the newest addition being the Mercedes-Benz S 450 L and
the Mercedes-AMG C 43 4MATIC Facelift.
MBM’s long-term commitment is also demonstrated through the Mercedes-
Benz Malaysia Training Academy built to develop the skills of Malaysia’s
youth and create meaningful job opportunities in the automotive industry.
2018 saw an additional 26 apprentices graduated bringing the total to 853
globally certified local apprentices who have passed through its doors since
the establishment of the training programme.
On its outlook for the year ahead, Dr Weidner said, “2019 will be another
exciting year for Mercedes-Benz with refreshing innovations and new
benchmarks to elevate the customer experience. We are excited to share
these updates in due time.”
Earlier today, Daimler AG announced that on a global level Mercedes-Benz
sold approximately 2.3 million cars worldwide in 2018, increasing its unit
sales by 0.9 per cent, making 2018 the most successful year in terms of sales
in the company’s history.
The new sales record in the car division of Daimler AG was driven in
particular by the success of Mercedes-Benz in the Asia-Pacific region. Asia-
Pacific was identified as the region with the strongest growth in 2018,
delivering 943,473 (+7.8%) Mercedes-Benz cars to customers in 2018.
Mercedes-Benz Malaysia was one of the few markets in the Asia Pacific
region to have delivered more passenger cars than ever before in a single
year.
*As of YTD November 2018
**The numbers for 2018 are unaudited and subject to change.
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