Large brand shop opens in Kuala Lumpur

Local subsidiary conversion, logistics center under review

A Nexen Tire brand shop in Malaysia. [Nexen Tire]
A Nexen Tire brand shop in Malaysia. [Nexen Tire]

Nexen Tire is accelerating its push into the ASEAN market by strengthening its sales, retail and logistics operations in Malaysia. The company plans to expand its brand store network, convert its Malaysian subsidiary into a local sales entity and build a regional logistics center — moves aimed at establishing a self-contained business structure in the country.

Nexen Tire announced Monday that it had renovated a large brand shop in the Sri Petaling area in southern Kuala Lumpur. The company has opened more than 60 brand shops in Malaysia since 2022 and plans to add about 20 more this year to steadily raise brand awareness and market share.

The brand shops are partner stores fitted with Nexen Tire's visual identity, the product of a "shop branding" strategy the company has pursued across global markets. Under the approach, signage, interiors and displays at local stores are unified around the brand's signature purple color scheme, giving consumers a consistent brand experience through a readily recognizable storefront.

Alongside the store expansion, Nexen Tire will convert its Malaysian subsidiary into a resale entity that directly handles local distribution, starting with production volumes from this month. The move is intended to sharpen the company's responsiveness to the local market and improve distribution efficiency.

To secure a stable product supply chain, the company is also reviewing plans to build a regional logistics center, targeting an opening in the first half of next year. The strategy is to build out sales locations, a direct sales structure and logistics infrastructure in stages, completing a fully integrated local business operation.

Malaysia is one of ASEAN's key automotive markets and is regarded as a strategic hub for Southeast Asian expansion. Nexen Tire supplies original-equipment tires to global premium automakers including Mercedes-Benz, BMW, Porsche and Audi, and plans to leverage that proven quality to compete in the local market.

"The brand shop expansion, the conversion to a sales subsidiary and the logistics center build-out all reflect Nexen Tire's long-term commitment and vision for the Malaysian market," a company official said. "We will continue to strengthen our brand presence across ASEAN on the back of a locally rooted business structure."

Founded in 1942, Nexen Tire is one of South Korea's leading tire manufacturers, producing and selling tires primarily for passenger cars, SUVs and light trucks. The company currently exports to more than 150 countries and is building its competitiveness around premium products, customer service and electric vehicle tire technology.


eyre@heraldcorp.com