Tan Chong to unfold the Nissan Leaf in November

by **Cals** Fri 11 Oct 2013, 08:29

Posted on 11 October 2013 - 05:39am

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PETALING JAYA (Oct 11, 2013): Tan Chong Motor Holdings Bhd (TCM) is expected to launch its first all-electric vehicle (EV), the Nissan Leaf, in November this year.

"The Nissan Leaf will come with a hefty price tag of circa RM200,000 and management expects to sell only 10 units per month... (as) the early launch of the EV is not to drive turnover, but rather to gain a first-mover advantage in the EV segment," MIDF Research said in a note to clients yesterday.

"Such advantages may include gaining market share, as well as building technical know-how, intellectual property and consumer brand awareness ahead of its competitions," it added.

The research firm sees a possibility that TCM's efforts will pay off in the coming years when battery prices come down and technology improves.

In the meantime, contributions from TCM's EV segment will likely be negligible.

For the next financial year ending Dec 31, 2014, MIDF Research said TCM anticipates the launch of two facelifts as well as the introduction of a completely knocked down (CKD) version of an existing offering.

"The refreshed models are expected to counter any slack in sales volumes, while the introduction of the CKD may bump sales up a notch for the model in question," it said.

MIDF Research is maintaining a "buy" recommendation on the automotive group at RM6.58, with an unchanged target price of RM7.70 by applying a price-earnings ratio (PER) of 12 times which is reflective of the industry PER.