UMW Toyota to manufacture cars locally

UMW Toyota Motor Sdn Bhd is taking it’s operations here to the next step. It will start manufacturing cars here in Malaysia, with the first roll-out expected in 18 months time.

Toyota’s sales success of around 7000 cars a month has reached a milestone where it will begin to be financially feasible to manufacture vehicles locally instead of importing CKD kits and merely assembling them here in Malaysia. These Malaysian-manufactured Toyota cars would have over 60% local content. Toyota officials did not mention which models would be manufactured locally, but it is likely the high volume models like the Toyota VIOS which accounts for 1,500 units of the 7,000 monthly sales figure.

There is a future possibility of price reductions for the locally manufactured vehicles from cost-savings from its operations, but this is just a possibility. UMW Toyota is also exporting a vehicle assembled locally to Thailand beginning next Monday. The model exported will be a van model.

Source

Looking to sell your car? Sell it with Carro.

Certified Pre-Owned - 1 Year Warranty

10% discount when you renew your car insurance

Compare prices between different insurer providers and use the promo code 'PAULTAN10' when you make your payment to save the most on your car insurance renewal compared to other competing services.

Car Insurance

Paul Tan

After dabbling for years in the IT industry, Paul Tan initially began this site as a general blog covering various topics of personal interest. With an increasing number of readers paying rapt attention to the motoring stories, one thing led to another and the rest, as they say, is history.

 

Comments

  • Dogster (Member) on May 25, 2006 at 9:01 am

    YAHOOOOOOOOOOOOOOOOOOO

    Like or Dislike: Thumb up 0 Thumb down 0
  • lance (Member) on May 25, 2006 at 4:36 pm

    Very interesting news indeed. If I remember correctly, Toyota has manufacturing facilities in Indonesia (for Avanza engine and parts); assembly plants in Thailand and Malaysia. So, they are looking to have a manufacturing facility in Malaysia as well? Hmmm… wondering if they are pulling out from Indonesia (unlikely) or to address a capacity issue (unable to meet demands). This is good news to us average Malaysians (income RM2,000 – RM5,000 households).

    Like or Dislike: Thumb up 0 Thumb down 0
  • kendo (Member) on May 25, 2006 at 4:55 pm

    SERIOUS?!

    hopefully,

    we will enjoy like AUssie, China market toyota FAIR prices…

    lexus 200K,

    crown 150k,

    camry Rm100k,

    altis 70k,

    vios 50k

    yaris 40k

    Like or Dislike: Thumb up 0 Thumb down 0
  • Tracks (Member) on May 25, 2006 at 4:57 pm

    For Toyota manufacturing in Malaysia to be possible, I don't think it would be a sedan since the high local content of 60% was indicated. Instead it should be most likely to be the Avanza as it shares alot of similar components with Perodua Kembara. Good news as it creates more job opportunity. Better still if the car was to be sold significantly cheaper. Dream everybody.

    Like or Dislike: Thumb up 0 Thumb down 0
  • rexis (Member) on May 25, 2006 at 5:06 pm

    Well done UMW, now this is wat we called "announcement" mar, not some market boosting none decided "news".

    Like or Dislike: Thumb up 0 Thumb down 0
  • assimo (Member) on May 25, 2006 at 5:06 pm

    And also can monitoring their partner P2 more closely…But in BolehTaxLand CKD prices also still high….

    p/s – One DBKL staff Gen2 fall down from second floor apartment parking in KL during reverse…its it human or mechanical problem…so pity…

    Like or Dislike: Thumb up 0 Thumb down 0
  • Initial D (Member) on May 25, 2006 at 5:09 pm

    assimo……maybe he wanna test gen2 hard or not, hehehehe….

    back to the topic…well,its good news they wanna start manufacture some models here but i think avanza n maybe vios onli…coz other units dun sell much……

    Cheers!!!!!

    Like or Dislike: Thumb up 0 Thumb down 0
  • motorhead (Member) on May 25, 2006 at 5:18 pm

    So how aar..?? can get the national car title.. or still CKD?.. price reduction? how low?? hmmm… interesting, but sound like a threat to poton.. can gov allow this? or they still will apply price discrimination to UMW toyota??

    wait and see…

    Like or Dislike: Thumb up 0 Thumb down 0
  • jehutyz (Member) on May 25, 2006 at 5:26 pm

    Then we will have a cheaper price for Toyota cars………

    Great.

    Like or Dislike: Thumb up 0 Thumb down 0
  • whodz (Member) on May 25, 2006 at 5:33 pm

    Paul mentioned, "Toyota’s sales success of around 7000 cars a month has reached a milestone…".

    Indeed, there's no need to get a milestone here in Malaysia, Toyota. Just put self into pieces and assemble here and tag a low cost price. Surely, there will boost your sales. Believe me.

    Like or Dislike: Thumb up 0 Thumb down 0
  • whodz (Member) on May 25, 2006 at 5:34 pm

    'grammer' mistake; there ->it.

    Like or Dislike: Thumb up 0 Thumb down 0
  • kody (Member) on May 25, 2006 at 6:05 pm

    hoohoo…

    Very good news… but 18 months are a bit long, can our traffics support annually increase vehicles on the roads???…. 2010… may be cars on road must pay extra daily on the road running tax (G to increase incomes, roadtax 4 road repairing, this tax is for the right to use the roads)… :)

    Like or Dislike: Thumb up 0 Thumb down 0
  • Abu (Member) on May 25, 2006 at 6:06 pm

    CKD price will be cheaper than the one assembled in thailand i suppose…but under AFTA rule…does that make different??? anyway if they manufacture here, it could see a drop of atlease 15% on the car price perhaps…does that lead to faster closing shop of potong????

    Najib said G will still provide protection to Potong becoz its national pride and national industry.

    Mine…tat makes up the story of a rich father, who’s only son, seems to be useless, but becoz he is the oni son, the father will keep pump in money to make the sons dress good and looks good, and at last, both went bankrupt and bag on the roadside…pathetic har??? :P

    Like or Dislike: Thumb up 0 Thumb down 0
  • Dinozilla (Member) on May 25, 2006 at 6:11 pm

    good thing man……Honda sales not bad too…..when honda would consider manufacture locally too??? then we can enjoy VIOS and City at 50-60K…..lol

    Like or Dislike: Thumb up 0 Thumb down 0
  • revver (Member) on May 25, 2006 at 6:48 pm

    Hip! Hip! HooooraaaaaaYYYYYYYYY!!!!

    Thank you God for saving us from The Blood Sucker.

    Like or Dislike: Thumb up 0 Thumb down 0
  • Initial D (Member) on May 25, 2006 at 6:55 pm

    i think the G will try to limit the toyota local ones, if nt p1 will drown liao…

    Cheers!!!!!

    Like or Dislike: Thumb up 0 Thumb down 0
  • KY (Member) on May 25, 2006 at 7:13 pm

    Proton just started sweating..

    Like or Dislike: Thumb up 0 Thumb down 0
  • nissan130Y (Member) on May 25, 2006 at 7:26 pm

    i think the price will still be around the same range. and The G will come out with new "tactics" to make sure the cacat baby (P1) to rule like Nespray kid.. Unless all Malaysian agree stop buying P1 car for a year.. then mayb they can close shop. Anybody interested to join me for that idea? i can just drive my 23 years old nissan for 2 to3 more years….. sabar sabar…

    Like or Dislike: Thumb up 0 Thumb down 0
  • Dogster (Member) on May 25, 2006 at 7:26 pm

    G limit the toyota production? NO WAY man. I will vote for PAS next round if they do so! Everyone support PAS if they do so!

    But I bought a Myvi liaw. howw now?

    Like or Dislike: Thumb up 0 Thumb down 0
  • kendo (Member) on May 25, 2006 at 8:45 pm

    STOP

    buying POTONG cars,

    For all

    RAKYAT BENEFIT

    mobile everyone U know…

    Like or Dislike: Thumb up 0 Thumb down 0
  • Fairman (Member) on May 25, 2006 at 9:24 pm

    Kendo, you earned my support, i'm proposing sell my WIRA, and going to approach 2nd toyata vios or honda city….

    Like or Dislike: Thumb up 0 Thumb down 0
  • Joe Ooi (Member) on May 25, 2006 at 9:35 pm

    Kendo & Fairman – we speak a same frequency – kill P1, otherwise P1 will continue to suck us!

    Like or Dislike: Thumb up 0 Thumb down 0
  • vin_ann (Member) on May 25, 2006 at 9:59 pm

    horey….

    i'm just graduate…planning to get a car in 1-2 years time….

    very good timing for me…

    hope Vios o Yaris will be locally produce loh….

    40K yaris…

    Like or Dislike: Thumb up 0 Thumb down 0
  • cyborgx (Member) on May 25, 2006 at 10:12 pm

    dont forget me too. ^^

    Anyway, alot of things we discuss here and other auto-forums are not known to the people outside. We need to spread the common knowledge about our local automotive industry particularly, Proton. The people outside.. they are still naive about car prices and wouldnt care if Proton continue to abuse their protection given by the govt, to sell old cars model with ZERO safety features. (unless you pay premium price for standard safety features like airbags etc, which is pathetic)

    As I said before, we will never get Vios or City at RM40K-50K as these price reign are protected for Proton. 2nd hand City and Vios are selling like hot cakes now, I bet the govt will give some stupid excuses to raise their price (my own speculation).

    Like or Dislike: Thumb up 0 Thumb down 0
  • mycar_stolen (Member) on May 25, 2006 at 10:33 pm

    nissan130Y said

    Anybody interested to join me for that idea?

    it is anybody matters it is a compulsery for all msians…..

    p/s now helping fresh grad niece for a none Proton. anything can move but not Proton.

    KY said,

    May 25, 2006 @ 11:13 am

    Proton just started sweating..

    they are dying…..make their sales less then 15% this year.

    Like or Dislike: Thumb up 0 Thumb down 0
  • stanley (Member) on May 25, 2006 at 10:55 pm

    kendo… u go support ur stupid proton car….

    proton even brand name is stupid — Ben Dan

    my godness..

    Like or Dislike: Thumb up 0 Thumb down 0
  • optimus_prime (Member) on May 25, 2006 at 10:57 pm

    Friends, dont hope of getting the pricing down by much.. Look at Honda cars you know already laa. Manufacture in Malacca also around 80K and above. What makes you think UMW going to be so much cheaper..

    Like or Dislike: Thumb up 0 Thumb down 0
  • oversight (Member) on May 25, 2006 at 11:02 pm

    hope they can CKD the toyota athlete and crown majesta here. sell at RM 80k.

    maybe hope just become daydreamin? :(

    Like or Dislike: Thumb up 0 Thumb down 0
  • whodz (Member) on May 25, 2006 at 11:06 pm

    Wow,this blog has became a medium for bashing and boycott proton.You know, G will always put their child into safety no matter cost. But, in this case I hope G will put actions to their child for not main kotor..after this happened.

    Like or Dislike: Thumb up 0 Thumb down 0
  • assimo (Member) on May 25, 2006 at 11:47 pm

    Agree with optimus_prime,not easily the price will cheap.But after JV with china car manufacturer,why potong still looking for another partner, Peugeot…maybe jealous with Naza…??..hihi…

    Like or Dislike: Thumb up 0 Thumb down 0
  • Joe Ooi (Member) on May 26, 2006 at 12:12 am

    assimo – P1 is "playboy" mah, want to play-play around mah! he, he, he …..

    Like or Dislike: Thumb up 0 Thumb down 0
  • chang (Member) on May 26, 2006 at 12:16 am

    good news….

    but P1 still here…..

    n….

    our gov can let tpyota price cheaper???

    Like or Dislike: Thumb up 0 Thumb down 0
  • StingRayINC (Member) on May 26, 2006 at 12:28 am

    This is a good news indeed, now that's motivation. Cheaper toyota, yay!!!!

    Like or Dislike: Thumb up 0 Thumb down 0
  • REDDEVIL (Member) on May 26, 2006 at 1:35 am

    Guys, you all are too optimistic.. toyota cars price won't drop drastically if they manufacture cars here, may be a around 5k. i believe the G will impose other taxs to protect P1..

    Anyway, it's a very good news to the Malaysian and a very BAD BAD news for P1, I think they are shaking and sweating now.. and I hope Honda will do the same too..

    Let's see how long P1 can stand..

    Like or Dislike: Thumb up 0 Thumb down 0
  • topgunthang (Member) on May 26, 2006 at 2:00 am

    p1 not worried. thier savvy handling can trounce the vios inside out and win the public over.

    hehe. just being sarcastic.

    if the government was really serious in improving the car indutry or economy in msia, then this should be seen as a welcomed news.

    on the other hand, if toyota prices were indeed about the same as proton cars, then proton definitely no hope at all. they are not just sweating, but already got that warm calm feeling down the legs. its also up to UMW how much profit they want. but i think if the government doesnt step in (which will be impossible they wont) its a good time to increase market share while getting a little extra profit.

    Like or Dislike: Thumb up 0 Thumb down 0
  • optimus_prime (Member) on May 26, 2006 at 2:13 am

    You already see the effects of Proton dying. Fuel price went up. Electricity costs going up without any reasons being given.. Look at star paper today, 2 page story describing it but not a single reason for the increase is listed…

    So faster proton losing money, the faster prices for everything will increase.. Dis for sure..

    Like or Dislike: Thumb up 0 Thumb down 0
  • StingRayINC (Member) on May 26, 2006 at 2:55 am

    Honda has a plant in melaka, but i dunno where it is in detail……

    Like or Dislike: Thumb up 0 Thumb down 0
  • jtshin (Member) on May 26, 2006 at 3:22 am

    I quite agree with optimus_prime… I read the newspaper already today… even here in Swk, we know that TNB rise their price without saying some reasons… fuel price… haha… another long story… lazy to tell here…

    Back to the story… Toyota manufature here in M'sia… I don't think it will be cheaper a lot also like others said… maybe cheaper a bit… after the daddy suck some $$ from Toyota to P1, Toyota can't do anything and hv to increase the price to sell their cars n here we are… buying only cheap a little bit Toyota cars… hehe… but still looking forward to their plans… 18 months to go… hehe… Anyway.. hoping it will at least cheaper rm10k to RM20k? hmmm… dunno…

    Like or Dislike: Thumb up 0 Thumb down 0
  • acbc (Member) on May 26, 2006 at 3:27 am

    If Proton lose money, G will use our EPF and tax to save it.

    At the same time, Toyota cars won't be cheaper… maybe RM 5k at most.

    Like or Dislike: Thumb up 0 Thumb down 0
  • optimus_prime (Member) on May 26, 2006 at 5:37 am

    This is sad making everyone see the truth. Its almost as bad as taking the LRT during the morning rush hours. You can sense the hopelessness of the rakyat when they're in the packed train and at the next stop, they see a crapload of people waiting to jam themselves into the already full cab. Wonder why they dont increase the # of cabs for LRT to cope with this traffic…. Hmmn..

    On a lighter note, there is another bright side to UMW manufacturing cars here, spare parts will be cheaper! Woo…

    Like or Dislike: Thumb up 0 Thumb down 0
  • Initial D (Member) on May 26, 2006 at 6:14 am

    (sing)dream……dream,dream,dream………….you all can dream…..dream that car…price will come down…….u alwayz dream….but in reality…it wont come down…..so, dream…..dream, dream, dream……

    sori, i mod the lyrics a little…..

    Cheers!!!!!!

    Like or Dislike: Thumb up 0 Thumb down 0
  • Tracks (Member) on May 26, 2006 at 5:59 pm

    optimus_prime said,

    May 25, 2006 @ 9:37 pm

    "This is sad making everyone see the truth. Its almost as bad as taking the LRT during the morning rush hours. You can sense the hopelessness of the rakyat when they’re in the packed train and at the next stop, they see a crapload of people waiting to jam themselves into the already full cab. Wonder why they dont increase the # of cabs for LRT to cope with this traffic…. Hmmn.."

    You should take a look at how japanese pack themselves into a train. The train operator even hired a person specifically to cram people into a train like a sardine can.

    I agree with acbc that if Proton loses money, G would use EPF and tax money to save them. Ofcourse this is also done on MAS and many other GLCs. G would possibly reduced subsidy of petrol or create some other form of taxes to get back money. We all suffers one way or another not just due to loses incurred by Proton but other GLCs as well.

    Like or Dislike: Thumb up 0 Thumb down 0
  • jtshin (Member) on May 26, 2006 at 6:45 pm

    sad country… pity malaysians… all money sucked to do wat is not important to citizens' life… but tat is only a nevermind…. wat is really pity is tat all the money sucked n went there… all into datuk datuk's pocket…. they drive big cars, live big bangalows, send children overseas, migrate, while others stay here go into crap local uni, drive protons, live in atap houses… shame…

    Like or Dislike: Thumb up 0 Thumb down 0
  • optimus_prime (Member) on May 26, 2006 at 7:53 pm

    Tracks said,

    May 26, 2006 @ 9:59 am

    "You should take a look at how japanese pack themselves into a train. The train operator even hired a person specifically to cram people into a train like a sardine can."

    Just because it happens in another country, does not make it right. Furthermore, Japan has a much higher population density and much less space that what we have. I see huge-ass platforms at LRT stations but only a train with 2 cabs arriving. Grossly inefficient service.

    Like or Dislike: Thumb up 0 Thumb down 0
  • mankrm (Member) on May 26, 2006 at 9:00 pm

    really hope they would produce camry 2007 locally… cool car!

    Like or Dislike: Thumb up 0 Thumb down 0
  • notorpkcuf (Member) on May 26, 2006 at 9:25 pm

    Quote Uncle Chips from Motortrader

    Posted – 26/05/2006 : 10:02:23 Show Profile Visit Chips's Homepage Reply with Quote

    This is actually a misquote and the MD of UMWT is upset about it. The reporter who asked him the question did not understand his answer.

    There is no plan to manufacture a Toyota model in Malaysia, if manufacture means making the entire car from stamping steel sheet panels like Proton and Perodua do. However, Toyota will designate Malaysia as one of the countries to assemble certain models for distribution around Asean.

    To manufacture a whole car requires a very big investment in the stamping machines and only when you have volumes like Proton and Perodua can you do it. So unfortunately because of Malaysia's foot-dragging on policies, the Japanese put their biggest investments into Thailand and Indonesia where their factories have the stamping machines.

    And to ensure that they get economies of scale, they are already exporting their vehicles beyond Asean: Honda exports the City to Japan and some other countries, Ford exports its Everest/Ranger worldwide and Toyota is making Hiluxes in Thailand for worldwide supply.

    Like or Dislike: Thumb up 0 Thumb down 0
  • Tracks (Member) on May 27, 2006 at 12:15 am

    optimus_prime said,

    May 26, 2006 @ 11:53 am

    "Just because it happens in another country, does not make it right. Furthermore, Japan has a much higher population density and much less space that what we have. I see huge-ass platforms at LRT stations but only a train with 2 cabs arriving. Grossly inefficient service."

    Ofcourse what is acceptable elsewhere may not be acceptable here. Right or wrong is a matter of majority agreement. I quoted the Japanese example for a laugh but instead you sound offended in your reply. The huge platform was built in expectation of greater passenger volume later where by ofcourse they would possibly add additional cabs in the future. At the moment, the operator must have felt that it is still efficient with two cabs alone. Luckily I did mentioned the condition of the train service in India if not probably you would lashed out on me even more.

    People tend to forget and failed to realize that the mode of transport had changed from mini buses to LRT but the cramped condition is still the same. Gone are the day of the efficient racing mini bus that get from point A to point B faster then any ofher mode of public transport. It was cramped but efficient.

    But I can't sympathize with you as car drivers too has their fare share of stress from silly traffic jams alone during rush hour made worst if it rain heavily. Imagine if you are stuck in a 2 hours traffic jam and you desperately need to get to the loo but got nowhere to go. So lets faced it, if you are going to opt for public transport during rush hour, being cramped in a minibus, bus or LRT is just going to continue. Please don't take personally because we all at some point time must have use the public transport and are fully aware of the condition during rush hour.

    Ok now back to the topic. Now that someone has clear the air about Toyota wanting to assemble instead of manufacture, the picture become clearer. If the 60% local content quote was correct, I definitely think it is the Avanza since it shares many component with Kembara.

    Like or Dislike: Thumb up 0 Thumb down 0
  • optimus_prime (Member) on May 27, 2006 at 3:31 am

    Well well, look who's really taken offense here… All I did was say their service sucks. Yes its a fact that every mode of transport has it's own problems during rush hour. However, adding another cab or two is much simpler and achievable than adding another lane or road for vehicle traffic.

    But I digress, so back to the main topic. Guess report was taken out of context so that just may mean more CKD's only from Toyota?

    Like or Dislike: Thumb up 0 Thumb down 0
  • Tracks (Member) on May 27, 2006 at 5:35 pm

    optimus, ofcourse your solution of adding a extra cab sounds simple. But for your comparison to road vehicle, normally the transport operator add additional buses instead of asking the G to add another lane or road for vehicle traffic. But that would have contributed to more traffic jams. I guess the LRT operator felt that it would not be viable for the LRT to drag a long an extra cab especially so during non rush hours unless the capacity had been reached. There must be balance for profit mah. LRT not like train where by they simple could disengage a cab whenever they wanted to.

    Please remember that efficiency is to produce the highest yield using the shortest period at compromise of quality.

    Lastly, I wish to make peace with the autobot leader. Now then we move on to never topics.

    Like or Dislike: Thumb up 0 Thumb down 0
  • Only the Camry Altis CBU Thailand and Rush CBU Indonesia dont't day dreaming Toyota model selling below 50K. Vios for example selling higher price from our Siam & Indon.

    Like or Dislike: Thumb up 0 Thumb down 0
 

Add a comment

required

required