Kuala lumpur: Sime Darby Motors Sdn Bhd anticipates ending its financial losses by the financial year concluding on June 30, 2026 (FY2026), attributed to strategic branch consolidations in China, as stated by managing director Andrew Basham. Additionally, Basham noted that BMW has provided additional support to some of the BMW dealerships operated by Sime Darby Motors in China.

According to BERNAMA News Agency, Basham detailed that the company is reducing its presence in non-BMW brands in China. To date, 15 branches have been closed, with plans to close six more by April 2026, leaving eight outlets to focus on the Volvo, Genesis, and Kia brands. Basham also mentioned that out of the 22 BMW dealerships the company runs in China, 13 older outlets are profitable, while the newer nine are still developing their customer base.

BMW's financial assistance is expected to facilitate improvement, with Basham expressing confidence that most issues have been addressed, leading to the cessation of losses by FY2026. This was disclosed during a media briefing on Sime Darby Bhd's FY2025 results, attended by key figures including Sime Darby Bhd group CEO Datuk Jeffri Salim Davidson and others.

Jeffri highlighted the challenging market conditions in China's auto industry, expressing hope that governmental measures, along with production management and pricing strategies from Chinese brands, would stabilize the market. Locally, UMW division managing director Datuk Mustamir Mohamad predicts the total industry volume to stabilize between 790,000 and 800,000 units in 2025, driven by steady mid-level and mass-market volumes.

Mustamir added that factors such as rising minimum wages and civil servants' salaries are expected to boost sales volumes, particularly in the mass and mid-market segments.