Nexen Tire is establishing a local business framework in Malaysia, a key market in the ASEAN region, encompassing sales, distribution, and logistics. The company is expanding its brand presence and transitioning to a local sales corporation to enhance its foothold in Southeast Asia.
On August 3, Nexen Tire announced the recent renovation of a large flagship store in the Sri Petaling area of Kuala Lumpur.
Since 2022, Nexen Tire has opened over 60 flagship stores in Malaysia, with plans to add more than 20 additional locations this year to continuously boost brand awareness and market share.
The flagship stores are designed to reflect Nexen Tire's brand identity in local partner outlets, representing the company's global 'shop branding' strategy.
Nexen Tire is also significantly upgrading its sales structure in Malaysia. Starting next month, the company will convert its Malaysian subsidiary into a resale corporation responsible for local distribution.
This transition aims to strengthen local market responsiveness and distribution efficiency. The company is also considering establishing a regional logistics center, targeting a launch in the first half of next year. The plan is to gradually develop a complete local business structure encompassing sales points, entities, and logistics.
Malaysia is recognized as one of the major automotive markets in ASEAN and is viewed as a strategic hub for Southeast Asian expansion. Nexen Tire plans to leverage its proven quality by supplying original equipment tires to global premium automotive brands such as Mercedes-Benz, BMW, Porsche, and Audi.
A Nexen Tire representative stated, "The expansion of flagship stores, the transition to a sales corporation, and the establishment of logistics centers demonstrate Nexen Tire's long-term investment commitment and vision for the Malaysian market."
Meanwhile, Nexen Tire reported a second-quarter revenue of 891.3 billion won, a 10.8% increase from the same period last year. However, operating profit fell by 19% to 34.3 billion won due to rising raw material costs, shipping burdens, and U.S. anti-dumping tariffs.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.