Aux Group, one of the top 500 companies in China, is collaborating with local air-conditioner distributor Aufit Malaysia Sdn Bhd to market its product across the country.

As part of the tie-up, Aufit has invested RM10 million to open sales and service centres in eight locations in Malaysia, namely Puchong, Johor Bahru, Butterworth, Kuantan, Kota Bharu, Melaka, Kota Kinabalu and Kuching.

The Aux Group is a diversified business conglomerate with interests in several industries. It manufactures home appliances, electrical equipment and medical equipment. It also has interests in real estate.

Rando Wu, the Asean sales manager for Aux Group, expressed confidence that it would see growth in the Malaysian market despite the many complexities at the global level.

“This presents significant opportunities for us and we want to enter the market early,” he said.

He said the rising consumer demand for air-conditioning, fueled by the improvements in housing standards, was a factor that led to Aux Group’s decision to invest in the same segment in Malaysia.

Aux Group cited research showing that the global market for air-conditioners is projected to register a compound annual growth rate (CAGR) of 5% from 2021 to 2026, with the Asia-Pacific, the world’s largest market, accounting for the fastest growth.

The rise in demand is fueled by rising temperatures and heightening humidity levels across the globe, the research shows.

Wu said the Aux Group makes research and development (R&D) a priority to meet the latest market demand.

“This includes creating technologies that contribute to energy efficiency and sustainability as well as to help combat health conditions such as pneumonia and asthma or virus contamination,” he added.

Aufit Malaysia managing director Alan Yap said the two companies hope to meet at least 10% of the local demand within three years.