Amtel Holdings Berhad announced that it is looking to diversify into the manufacturing and assembly of motor vehicles, targeting both local and export markets.

According to its Bursa filing, the Motor Vehicle Business will focus on assembling vehicles by integrating imported and local components, ensuring compliance with relevant safety and quality standards. The new line will cater to a range of customer needs, potentially including passenger, commercial, or specialty models, with an emphasis on flexible, modular design and adaptability to meet specialized business requirements.

AMCSB, incorporated in 1993, currently specializes in research and development of hardware and software applications, as well as the manufacturing, assembly, installation, and sale of telematics, navigation, electronics, automotive, and telecommunication-related products. This existing expertise in automotive accessories provides Amtel with a strong foundation for this upstream integration into vehicle production.

Amtel’s move into motor vehicle manufacturing is driven by both strategic alignment and identified market opportunities. The company aims to bolster its presence across the automotive supply chain, strengthen operational synergies, broaden its customer base, and create additional revenue streams.

The company highlighted the strong growth potential within the motor vehicle sector, particularly in the niche electric and specialised vehicle segments. With increasing demand for locally assembled vehicles, supportive government policies, and a growing focus on regional manufacturing capabilities, Amtel sees this as a timely opportunity for its long-term expansion plan.

This initiative is part of Amtel’s broader strategy to enhance its financial performance by tapping into what it perceives as an underserved market, while remaining committed to its core Information and Communications Technology (ICT) business.

Amtel intends to fund the preliminary costs and expenses of the Motor Vehicle Business through a combination of internally generated funds and/or bank borrowings. The final funding structure will be determined at a later stage, taking into account the Group’s gearing level, interest costs, and internal cash flow requirements.Amtel Holdings Berhad announced that it is looking to diversify into the manufacturing and assembly of motor vehicles, targeting both local and export markets.

According to its Bursa filing, the Motor Vehicle Business will focus on assembling vehicles by integrating imported and local components, ensuring compliance with relevant safety and quality standards. The new line will cater to a range of customer needs, potentially including passenger, commercial, or specialty models, with an emphasis on flexible, modular design and adaptability to meet specialized business requirements.

AMCSB, incorporated in 1993, currently specializes in research and development of hardware and software applications, as well as the manufacturing, assembly, installation, and sale of telematics, navigation, electronics, automotive, and telecommunication-related products. This existing expertise in automotive accessories provides Amtel with a strong foundation for this upstream integration into vehicle production.

Amtel’s move into motor vehicle manufacturing is driven by both strategic alignment and identified market opportunities. The company aims to bolster its presence across the automotive supply chain, strengthen operational synergies, broaden its customer base, and create additional revenue streams.

The company highlighted the strong growth potential within the motor vehicle sector, particularly in the niche electric and specialised vehicle segments. With increasing demand for locally assembled vehicles, supportive government policies, and a growing focus on regional manufacturing capabilities, Amtel sees this as a timely opportunity for its long-term expansion plan.

This initiative is part of Amtel’s broader strategy to enhance its financial performance by tapping into what it perceives as an underserved market, while remaining committed to its core Information and Communications Technology (ICT) business.

Amtel intends to fund the preliminary costs and expenses of the Motor Vehicle Business through a combination of internally generated funds and/or bank borrowings. The final funding structure will be determined at a later stage, taking into account the Group’s gearing level, interest costs, and internal cash flow requirements.

Source: Business Today