Sime Darby Poised to Acquire Ingress’ BMW and MINI Operations.
Sime Darby Berhad, now rebranded Sime, is reportedly in advanced negotiations to acquire a significant portion of the retail and after-sales businesses of Ingress Corporation Berhad. Sources familiar with the matter suggest that the acquisition could be concluded as early as January 2024. Whether Ingress will be kept separate or merged into Sime’s existing Auto Bavaria dealer network remains to be seen.
Key Details of the Acquisition
Sime Darby is expected to take control of up to an 80% stake in Ingress’ BMW and MINI operations. These businesses span across key locations such as Damansara and Puchong in Selangor. Additionally, Sime Darby may gain access to a BMW body and paint workshop, further solidifying its footprint in Malaysia’s luxury car market.
The acquisition comes at a time when Sime Darby has been actively consolidating its automotive portfolio. Earlier, the conglomerate completed its takeover of UMW Holdings Berhad, gaining a 38% stake in Perodua, Malaysia’s top-selling car brand.
Expanding the BMW and MINI Presence
Ingress Corporation’s BMW and MINI businesses have shown consistent performance over the years, operating multiple service facilities in high-demand areas. A flagship BMW service center is situated in Damansara, while another MINI-focused outlet operates in Bangsar. This move aligns with Sime Darby’s strategy of strengthening its luxury automotive division.
Challenges in the Automotive Market
The Malaysian automotive market has seen increasing competition, especially from Chinese carmakers like BYD and Geely. These brands have gained traction with their focus on affordable electric vehicles (EVs), putting pressure on traditional players. Despite these challenges, Sime Darby remains committed to its role as a leader in the luxury segment, with BMW being a core marque in its portfolio.
Ingress Corporation’s Legacy
Ingress Corporation has been involved in various aspects of the automotive industry, from retail to after-sales services. The company also manages Mitsubishi and Volvo dealerships, along with manufacturing operations across Malaysia, Thailand, and Indonesia. However, the influx of Chinese EV brands has impacted its sales performance.
As of January 2024, Ingress has reported RM1.3 billion in total assets against liabilities of RM982.69 million. For the financial year ending January 31, 2024, the group achieved a net profit of RM96.67 million, bolstered by RM1.7 billion in revenue.
Sime Darby’s Strategic Vision
This acquisition complements Sime Darby’s ongoing focus on expanding its portfolio in the luxury and EV markets. Its wholly-owned subsidiary, Sime Darby Motors, is the leading dealer of BMW vehicles in Malaysia. With this deal, Sime Darby aims to further solidify its dominance, offering end-to-end automotive services from assembly to after-sales.
Looking Ahead
If finalized, the deal would not only enhance Sime Darby’s position in the luxury automotive segment but also signal its readiness to compete in an increasingly EV-driven market. This move reflects the company’s broader vision of staying ahead in Malaysia’s evolving automotive landscape.
