FRANKFURT, Oct 30 — A high-powered marketing mission of Malaysian suppliers of auto parts and components will be in Germany and France on a week-long visit from Sunday to scout for business prospects as more and more European car manufacturers seek foreign Original Equipment Manufacturers (OEMs) and Original Design Manufacturers (ODMs).
Malaysia, with a strong auto-parts and components supplier base, is looking to make an impact on car manufacturers in Germany such as Volkswagen, Mercedes-Benz and others that rely on a steady supply of quality products for their cars.
“We’ve already set up meetings for the suppliers with their German counterparts. We’re confident the visit will generate good business for Malaysian suppliers on a long-term basis,” said Mohamad Sabri Ab Rahman, the Malaysian Trade Commissioner in Frankfurt and the man in charge of the mission’s visit to Germany.
The visiting group comprises 12 companies engaged in a wide range of automotive parts and components from hi-tech and sensitive parts to components. Sabri said the mission’s primary aim is to help Malaysian automotive parts and components manufacturers expand their export market, and Germany and France are two attractive markets.
The visit will also provide insights for Malaysian companies on the latest technology and automotive market trends. In Germany, the delegation will visit Stuttgart and Frankfurt. Stuttgart is home to leading car manufacturers, particularly the Mercedes-Benz Group, which has significant operations in and around that city, said Sabri.
The Malaysian External Trade Development Corporation (Matrade) had arranged for one-on-one business meetings for the Malaysian suppliers with their potential buyers.
Sabri said: “There is good potential to contract business from the German automotive sector which sources about 80 per cent of its parts and components from overseas suppliers. In terms of contribution to the total production cost of a car, some 60 to 70 per cent of the value is accounted for by systems and modules suppliers.
“The German industry depends on innovations from these suppliers to manage its cost and value-added attributes,” he said.
According to information received from the Malaysian Trade Commission in Frankfurt, Germany is expected to produce about six million vehicles next year. This figure includes both passenger and commercial vehicles.
The value of Malaysia’s exports of automotive parts and components in 2008 amounted to US$4.35 million, up from US$4.09 million in 2007.
Malaysian companies have also been supplying automotive parts and components to Japanese and European car manufacturers. Malaysia faces fierce competition from India which has become a dominant force in the spare parts and components sector.
It is not unusual to see huge delegations of over hundred exhibitors from India showcasing their wares at the Frankfurt Automechanika Trade Fair, the world’s largest event for autoparts and components segment. — Bernama
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