Perodua, Daihatsu Partner on New Malaysian Engine Plant

Malaysian automaker Perodua and Japanese partner Daihatsu have begun construction of an engine plant expected to be operational in second-half 2016.

Part of their business expansion plan in engine, engine components and parts sales, the RM600 million ($183.3 million) plant will have annual 2-shift capacity for 140,000 engines of various displacements.

The government’s Bernama news agency quotes Perodua Chairman Asmat Kamaludin as saying the plant signifies confidence of growth in both domestic and global markets, as well as Perodua’s commitment to making Malaysia an automotive hub for the ASEAN region.

“This new plant…is our vehicle to ride the expected expansion of the automotive industry, while keeping the cost low to maximize returns,” Asmat says.

The creation of the engine plant not only will fulfill Perodua's needs in the future, he says, but also be able to supply other automakers in the region with engine parts and components.

“We believe that demand for engine parts and components will largely come from the ASEAN Economic Community, which will see a single market within the Southeast Asian region in the very near future,” Asmat says.

He says Perodua has been on a transformation journey since 2011 that will put the company's products and services on par or better than other established automotive brands.

“The initial outcome of this initiative can be seen with the launch of our latest model, the Perodua Axia, and we will be making several more announcements on this matter over the coming months.”