Dongfeng Commercial Vehicle Malaysia will remain resilient and has taken steps to weather the stormy period.
Dongfeng Commercial Vehicle Malaysia Reveals Strategies to Mininimise Business Disruption
It has been almost two years since the outbreak of Covid-19. Most automotive companies, especially the heavy trucks and equipment sector, have been severely affected, with Dongfeng Commercial Vehicle (Malaysia) Sdn Bhd (DFCVM) being no exception.
“We have been following strict standard operating procedures (SOPs) since the Malaysian government imposed the movement control order from April 2020 to contain the Covid-19 outbreak. These procedures include daily temperature screenings, scanning Mysejahtera QR codes using the Mysejahtera contact tracing app for all employees and visitors when entering the company’s premises, the strict enforcement of wearing a mask and social distancing. Other measures include the daily sanitisation of premises, providing hand sanitiser at key locations throughout the workplace, as well as arranging government-approved clinics to do swab tests for all our employees. Additionally, we also implemented a rotation of teams to work from home. We are taking all necessary precautions and measures to ensure the safety of our staff and customers at the workplace,” said General Manager KC Lim.
Sales of new vehicles have declined substantially and collections from aftersales services have also slowed, he added, indicating operational losses and cash flow constraints during the pandemic.
The work–from–home policy at various government agencies, he pointed out, includes the Ministry of International Trade and Industry Business (MITI), the Royal Malaysian Customs Department, the Road Transport Department (JPJ), Standard and the Industrial Research Institute of Malaysia (SIRIM), as well as financial institutes, which have slowed down the process of new vehicle applications and the approval and registration process.
“To make matters worse, the sea freight rates have escalated between 300 to 500 per cent, when shipping from China to Malaysia. The strengthening of the Chinese Yuan hasn’t helped either,” he added.
During these trying times, Lim is thankful for the unwavering support of the principals, shareholders, employees and their loyal customers. “Without them, we would not have been able to make it through the lockdowns and movement control orders imposed since March 2020. The challenges continue due to the daily upsurge in the number of Covid-19 confirmed cases, and we are now in the midst of a total lockdown, also referred to as full movement control order (FMCO).”
Lim understands the importance of keeping a positive mindset amidst the pandemic. He noted that heavy trucks are needed for the construction industry, logistics companies and haulage business. Despite the current adversities surrounding the heavy commercial vehicle business, he said that the market is still there.
“Booms, crises and recoveries are part and parcel of the business cycle. The recovery might be lengthy, but it is only a matter of time. We believe that the business cycle will reverse and the market will be booming again soon. This is based on our past experience within the industry.”
As the sole importer and distributor of Dongfeng heavy commercial and industrial vehicles, DFCVM has more than 10 years of experience providing solutions to the local transport industry. “We carry a wide range of Dongfeng vehicles, from mixer trucks, prime movers to rigid trucks. In 2012, we received the inaugural New Straits Times Truck of the Year Award, a recognition of DFCVM’s quality and services. Dongfeng trucks are reliable, powerful and economical workhorses for construction, logistics, haulage and other heavy industry operations. It is important to invest in the right trucks, and we are here to help to revive the above-mentioned industries during these difficult times.”
Amidst the current uncertainties, Lim stressed that DFCVM will remain resilient and has taken steps to weather the stormy period.
“We have trimmed down various expenses to the bare minimum for the time being. We will step up our aftersales service through the 24 hours breakdown services and hotlines to ensure customer business are not affected. To mitigate downtime, we have parts readily available for replacement, even though the Free On Board (FOB) cost is escalating and the shipping schedule is slow and erratic,” he revealed.
In the effort of helping their customers weather the impact of the pandemic while continuing to grow their business, Lim said that DFCVM is maintaining the popular new heavy-duty vehicles at the original affordable prices, so as to offset the sharp rise in FOB and sea freight charges, as well as the currency exchange rate changes.
Moving forward, Lim said, the company has been working with various stakeholders on the recovery plan, which will be disclosed in due time.
