Sime Darby Seeking to Establish Foothold in India

Malaysian Car Company Sime Darby is looking to set up a luxury car dealership in India and expand in India to take advantage of the growth in the two economies. The top official told Reuters. 

“We cannot forget India, “Group CEO Jeffrey Salim Davidson told Reuters: "It's too big a deal to ignore." So, we are looking at places in India to see if we can work with a local partner and start a car dealership business there.

He added: India, the largest country in the world, has the fifth largest economy. According to Jeffri, Sime Darby also plans to expand into Indonesia, South Asia and its largest economy after partnering with a local company to sell BMW cars in Jakarta and Medan.

Sime Darby, which derives 35 percent of its revenue from China, sees demand for luxury cars there remaining strong despite slowing economic growth. "Chinese people have money. They still buy cars," Jeffri said. "The problem in China is not the demand problem. It's a supply problem."

Jeffri said automakers in China have been increasing their market share since the pandemic, as a lack of supply has forced manufacturers to cut prices and squeeze margins.  Sime Darby was founded in 1910 and is one of Malaysia's oldest conglomerates, with operations ranging from farms to construction. We currently operate in 17 countries.

It spun off its palm oil and property businesses in 2017 and sold other businesses, including Ramsay Sime Darby Health Care, which was sold this month.

Sime Darby currently focuses on industrial and automotive businesses, including the assembly of Porsche cars in Malaysia and the distribution of BYD electric vehicles in Malaysia and Singapore.