CYCLE & Carriage may have sped ahead with Mercedes-Benz and Mitsubishi in 2007 because of strong sales for these two marques, but the group fared less well with its other two brands - Citroen and Kia.

Mercedes-Benz had a great year with a line-up of new and facelifted models, while Mitsubishi's record sales volume propelled it up the brand rankings.

On the other hand, the figures of C&C's two smaller franchises seemed to have languished by comparison.

But Cheah Kim Teck, CEO of group motor operations of Jardine Cycle & Carriage, isn't discouraged.

'Statistics aside, there is no question in Citroen's mind that Cycle & Carriage has, in a short time, brought the brand to a new level. We are where we want to be,' he explains. 'And we have put more passenger cars and models on the road.'

C&C took over the representation of the French brand in October 2006 from Advance Automobile, which had held the franchise since 1999. Last year was the first full year for C&C and it registered 956 vehicles, comprising 247 passenger cars and 709 commercial vehicles. The 2007 volume represents a quantum leap from 2006's 128 units and 2005's 361 units.

To date, C&C has put a total of 1,056 Citroen vehicles on the road here.

'For commercial vehicles, we have put a lot more units in the market, like the Citroen Berlingo, but we haven't gone full steam ahead yet,' Mr Cheah says. This is because more goods vehicle models like a new range of Dispatch models, in addition to the Relay and the new Berlingo, are due to be launched this year.

Meanwhile, he is taking a realistic view of the investment in the French brand.

'It is still too early to see if it is a good investment. It will take at least three years into the business for us to say we are on the right track,' says Mr Cheah. In 2007, C&C had invested $1.5 million to raise brand awareness and introduce four models - the C1, C4 coupe, Grand C4 Picasso and C6. In the second year, it expects to spend $1 million to continue marketing the marque.

'We expect to realise our investment target,' he says. 'We are moving in the right direction.'

As for Kia, Mr Cheah says competition is likely to get tougher with a smaller COE quota this year.

'There are a lot of other brands at the lower end of the market, including China-made cars. We have to manage expectations in a smaller market,' he says. 'Unless the manufacturer prices the cars to get a lot of volume, you have to manage the numbers.'

Last year, Kia sold 2,451 cars - a sharp drop from the previous year's 5,055 units - although 2007's volume was boosted by 691 taxis.

Yet, Mr Cheah insists C&C is comfortable with Kia being where it is. He says the Korean marque is profitable in the Cerato small sedan segment, while taxi sales are also 'taking off'.

'I am comfortable where I am but I am not naive' he says, referring to the threat that Chinese cars pose to the Korean segment of the market. 'This will be my distraction this year.'

This article was first published in The Business Times on Feb 13, 2008.