Plant, Car, Track Targets of Perodua’s Spending Plan

Malaysian national automaker Perodua plans to spend 2 billion ringgit ($614 million) to expand production, launch a new global energy-efficiency vehicle and build a new test track as it swings into action after the launch of the government’s national automotive policy.

Perodua President and CEO Aminar Rashid Salleh tells a media briefing most of the capital expenditure will be focused on its world-class production facility.

Aminar says the completion of the new MYR790 million ($242 million) plant in second-half 2014 will be a game changer for Perodua. Total investment is expected to reach MYR1.2 billion-MYR1.3 billion ($368 million-$399 million) with the installation of robotic and other equipment.

The facility will boost annual production capacity to 350,000 units from 250,000.

The Malaysian government’s Bernama news agency says Perodua’s 5-year strategic roadmap to enhance global competitiveness involves product innovation, research and development, procurement and production.

Aminar says first up on the agenda is the new EEV that will roll out of the new plant.

“Perodua's global quality and performance EEV model will be launched during second half of this year,” he says.

Although the car will be a compact, Aminar says it will be spacious and have styling and features suited to the Malaysian market, and it will be competitively priced.

“Our vision for the new car is to create an impact,” Aminar tells the Business Times. “When we introduced (the) Myvi in 2005, it created history. We are hoping history will repeat itself with the new car.”

The EEV will be unveiled when the new plant goes into production. The facility is being operated under a new joint venture with partner Daihatsu called Perodua Global Mfg., 51% owned by Daihatsu and 49% by Perodua.

JV Managing Director Ahmad Suhaimi Hashim says he is looking to sell 197,000 vehicles this year and to retain 30% of local market share for car sales with the opening of the new plant and the introduction of new model.

Aminar, meantime, says Perodua is seeking more government incentives for production of the EEV.