The performance of TChong has deteriorated over the past decade so that today you would not consider it one of the better auto company from a ROE perspective. Companies like BAUTO or HLInd have better ROE as per my analysis Are there opportunities in the Bursa auto sector?

Waiting for the Wheels to Turn: Tan Chong's Path to Recovery

Over the past six years, Tan Chong Motor Holdings has seen a steady decline in revenue, with 2024 revenue falling to about half of what it was in 2019.

• Demand for its core Nissan brand weakened amid intensifying competition in Malaysia and a limited pipeline of new, competitive models.

• Once-promising regional markets such as Myanmar and Vietnam were impacted by political instability and regulatory challenges, prompting a pullback in operations.

• The COVID-19 pandemic and subsequent global supply chain disruptions affected both sales and production.

• Tan Chong focused on cost containment and right-sizing in the face of these demand challenges also constrained growth and delayed a top-line recovery.

As a result, the Group recorded consecutive losses from 2020 through 2024, accompanied by a decline in its share price. Nevertheless, Tan Chong is currently undergoing a turnaround, as reflected in its positioning on the Fundamental Mapper.

A successful recovery will depend on a product-led strategy, stronger positioning in the commercial vehicle and electric vehicle segments, and more strategic use of its substantial asset base.

Importantly, Tan Chong remains financially sound. With a strong asset base, manageable debt, and adequate liquidity, the Group is well-positioned to weather short-term headwinds and has the runway to deliver on its turnaround plans.