Mazda Enters JV to Build, Distribute Cars in Malaysia

Mazda signs a joint-venture agreement with Malaysian distributor Bermaz to create Mazda Malaysia and begin manufacturing in the Southeast Asia country.

Mazda holds 70% of the JV and 30% is controlled by Bermaz, a subsidiary of Berjaya Group.

Bermaz says the partnership aims to increase local assembly and manufacturing activities of Mazda models. Berjaya Group says the auto maker will be able to reduce costs and gain a competitive advantage against other local car assemblers to support Bermaz’s sales and marketing efforts.

“Furthermore, the joint venture will be able to increase the localization activities which would create more local vendors' involvement in the Mazda Malaysian localization program," Berjaya says in a statement.

Mazda says the JV is meant to strengthen and expand its brand and business opportunities in Malaysia and enable quick response to needs. Bermaz is Mazda’s sole distributor in the country.

The Mazda CX-5 cross/utility vehicle will be assembled at the Inokom plant in the state of Kedah starting next spring. The CX-5 will be the second Mazda model to be assembled in Malaysia.

The first was the Mazda3, known as the Axela in Japan, which began local production in January 2011.

The initial Malaysian production target is 3,000 units of each vehicle.