| | DECEMBER 20239IN FOCUSSIME DARBY EXPANDING CAR RETAIL BUSINESS IN INDIA, INDONESIA - CEOGREEN HYDROGEN ORGANIZATION NAMES PROCLIME AS INDIA PARTNER AT CETFISSime Darby, Malaysia's industrial and automotive con-glomerate, aims to establish a luxury car retail venture in India and enhance its presence in Indonesia to cap-italize on the growth opportunities in both economies. Jeffri Salim Davidson, Group Chief Executive Officer, emphasized the significance of India, considering it too substantial to overlook. The company intends to explore potential ventures in India through local partnerships to initiate a car retail busi-ness.As the world's fifth-largest economy and with a substantial population, India holds immense importance. Additionally, Sime Darby plans to extend its operations in Indonesia, South-east Asia's largest economy. This expansion involves collabo-rating with a local company to sell BMW cars in Jakarta and Medan. Despite China contributing 35 percent of its revenue, Sime Darby anticipates sustained demand for luxury cars in the region, despite the deceleration in economic growth.Jeffri noted, "In China, despite people having disposable income, the challenge isn't a lack of demand but rather an oversupply issue". He explained that Chinese car manufactur-ers significantly increased production post-pandemic, aiming to expand their market share. However, this surge led to an imbalance in supply, compelling manufacturers to reduce prices, thereby squeezing the profit margins of retail distribu-tors. Established in 1910, Sime Darby stands as one of Malay-sia's oldest conglomerates with diversified businesses encom-passing plantations and manufacturing across 17 countries. In 2017, it divested its palm oil and property ventures and recently sold off other businesses, including Ramsay Sime Darby Health Care.Presently, Sime Darby focuses on industrial and automo-tive sectors, including the assembly of Porsche cars in Malay-sia and the distribution of BYD electric vehicles in Malaysia and Singapore. In a significant move in August, it revealed the acquisition of a 61.2 percent stake in UMW Holdings, a Ma-laysian automotive-to-manufacturing company. UMW Hold-ings assembles Toyota cars in Malaysia and holds shares in local car manufacturer Perodua, with the acquisition amount-ing to 3.57 billion ringgit ($767.41 million). Jeffri anticipates that this deal will position Sime Darby as the primary player in Malaysia's automotive industry, capturing more than 50 percent of the country's automotive market. "Our focus has largely been on luxury segments", he remarked. "Through this acquisition, we now enter the mass market, effectively expanding our reach across the entire value chain".The two-day Climate and Energy Transition Finance Summit (CETFiS) concluded on No-vember 29th. Hosted by the Ministry of New and Renewable Energy and the G20 India secretari-at in collaboration with the Green Hydrogen Orga-nization, the summit gathered global leaders and industry experts to outline a transformative route for climate finance. With 200 participants involved, the event led to the formulation of the Delhi Mes-sage on Climate Finance, released ahead of Prime Minister Narendra Modi's attendance at the UN Cli-mate Conference COP28 in Dubai. Put forth by the Green Hydrogen Organization and its associates in India, the Delhi Message presents a five-point strat-egy for funding the green hydrogen economy.The shift away from fossil fuels demands an unprecedented influx of capital, yet it also presents significant opportunities to engage capital markets with appropriate financial solutions. Ahead of the Forum, Amitabh Kant, G20 sherpa, emphasized the critical nature of the Climate and Energy Transition Finance Summit organized by the Green Hydrogen Organisation in addressing global climate change commitments. The Green Hydrogen Organisation, a prominent global non-profit advocating for green hydrogen adoption, announced ProClime as their carbon partner in India. ProClime will be instrumental in advancing climate action initiatives.Discussing the dynamics of energy transition, Jonas Moberg, CEO of the Green Hydrogen Organization, expressed admiration for the ambitious plans of numerous Indian companies aiming to lead in the production of green hydrogen, green ammonia, and other eco-friendly fuels on the international stage. Stressing the urgency of transitioning to sustainable energy sources, Moberg highlighted the partnership with ProClime as integral to their vision of integrating Carbon Markets into India's GH2 domain. Recognizing the necessity for substantial investments and innovative financial mechanisms to drive climate action, Moberg emphasized the significance of collaboration as a core objective.
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