HONDA MALAYSIA’S BUSINESS CHAIN AFFECTED DURING EXTENDED LOCKDOWN

Petaling Jaya, 5th August 2021 – Honda Malaysia (or the Company) reiterates its full support for the Malaysian Government’s efforts to curb the spread of COVID-19 by adhering to the Standard Operating Procedures (SOPs) since it was imposed in March 2020. The Company has closed its business operations comprising Honda Malaysia’s plant in Pegoh, Melaka, sales office and dealer showrooms since June 2021 to comply with the implementation of Full Movement Control Order (FMCO) by the Government due to the drastic rise in COVID-19 cases.

During this period, the after-sales services are allowed to operate at dealerships nationwide with minimal manpower and only selected after-sales services are available by appointment. To ensure the process is with minimum contact and easier for customers, the HondaTouch application enables customers to make their appointment through a more systematic approach.

Honda Malaysia Managing Director and Chief Executive Officer, Ms. Madoka Chujo said “With only certain after-sales services allowed and sales and manufacturing operations on halt, it is no surprise that sales have plunged. Honda Malaysia saw a decline of 52% in car sales for the year-on-year period of May to July 2021. We sold about 5,700 units in this period compared to close to 12,000 units sold in the same period last year when the country was under Conditional Movement Control Order (CMCO) and Recovery Movement Control Order (RMCO).”

THURSDAY, AUG 5, 2021

AUTOMOTIVE

• Honda Malaysia’s car sales for the period of May to July 2021 declined 52% year-on-year

• 101 Honda authorised dealers and their staffs are severely affected

• The Company targets to achieve 100% of first dose vaccination for its associates by mid-August 2021 under PIKAS

“The prolonged business closure has also impacted Honda Malaysia’s new model production due to no testing conducted in the manufacturing facility. Furthermore, the Company’s supply chain and exportation of parts are also affected. The automotive industry supports a wide network of local components and parts suppliers that comprises a few tiers. These suppliers might not be able to sustain their operations and this will subsequently affect the overall supply chain. The current extended lockdown and no visibility on business resumption timeframe have impacted planning and overall investment of the automotive marques,” Ms. Chujo continued.

Even more worrisome is the domino effect it has had on all 101 Honda authorised dealers who face financial difficulties and the uncertainty of employment for sales and service advisors as well as other staffs at the dealers. The sales advisors whose income largely depend on commission earned, have been severely impacted.

Ms. Chujo also added, “Honda Malaysia understands the hardship that the dealers and Honda associates are going through, and hence, the Company is trying to do its best to assist them during the difficult times. One of the efforts is by registering Honda associates under the Public-Private Partnership Industrial COVID-19 Immunisation Programme (PIKAS) to expedite the country’s rate of vaccination. The Company targets to achieve 100% of first dose vaccination for all its associates by mid-August 2021. As Malaysia has one of the world’s fastest vaccination rates, the Company hopes to achieve its vaccination target and subsequently the nationwide vaccination programme will help create a safer environment for Malaysians. Honda Malaysia is appreciative of the hard work of all the frontliners who have been working tirelessly to help fight the pandemic.”

Honda Malaysia hopes that should the early resumption of the automotive sector be possible under strict SOPs and guidelines set by the Government, there will be no long-term impact such as retrenchment of employees and can help to mitigate potential business closure among the supply chain.

Nevertheless, Honda Malaysia will continue to rise to the challenges and encourage everyone to embrace the spirit of “Together As One” by continuing to follow the SOPs to protect themselves and the people around them.