Perodua to build new RM790m plant in Rawang, adding 100,000 units to annual production capacity

perodua-aminar

December is a quiet month for the auto industry, for obvious reasons, so we didn’t see this coming. Instead of holidaying, the management of Perodua and Daihatsu held a media briefing this morning, revealing huge plans for the Rawang-based carmaker. Perodua will invest RM790 million to set up a new company and a new manufacturing plant adjacent to its existing factory in Sungai Choh, north of Rawang.

The new 65,000 square metre facility and its holding company (same shareholder ratio as now) will create 1,200 new jobs and add 100,000 units to Perodua’s annual production capacity, which now stands at 200k with a two-shift cycle. The 100k figure is based on a single shift, so full capacity should be even higher. Mass production is scheduled to start in mid-2014.

Perodua managing director Datuk Aminar Rashid Salleh said that the new plant will be “world class” and have the same hardware, systems and processes as Daihatsu’s factory in Japan. While the “new plant and old plant will complement each other,” the reason Perodua is building a new plant is because it’s easier to build a top level plant from scratch than upgrading a 19-year old one to meet the best standards.

“We want to jump start immediately, start from day one on a global level,” Aminar said. “This new company will be a role model for our existing manufacturing plant. It will have improved systems, new tech, more automation and is environmentally friendly,” he added.

perodua-new-factory

The new plant will feature, among other things, increased automated welding (full automation for under and main body), automatic body accuracy measurement, the latest 3-Wet Waterborne Paint, enhanced dustproofing for the paint shop and a brighter/quieter working environment.

Besides adding more capacity, the new plant is part of a structural transformation process Perodua is undergoing to better face market liberalisation post-2016. The new culture and practices from the new company/plant and will be implemented on the current plant via a process Daihatsu calls Yokoten.

We’re some years away from 2016, but Perodua admits that it is already feeling the heat – recent arrivals like the Mitsubishi Mirage and Nissan Almera (the latter sparking a price war of sorts) are encroaching into a price territory previously exclusive to national makes. Price aside, the new entries tout fuel efficiency as a selling point, and FC is one of the main reasons why Perodua is where it is today.

Faced with this, Perodua wants to reduce costs and improve quality to stay in the game. “We have to do something about it, and we have to do it quickly – it’s do or die for us. We cannot afford to be juara kampung,” Aminar declared. For readers outside of Malaysia, juara kampung can be translated to “village champion.” Think of a big fish in a small pond.

aminar-rashid-salleh

“This new plant is part of our five-year strategic roadmap to stay competitive in the ever liberalising automotive industry by helping us be more productive and efficient, while at the same time reducing cost,” he added.

An extra 100,000 units per year sounds like a big jump, and it is – with exports expected to account for only 20,000 units of total volume by 2015, some on the floor were scratching heads, wondering where all those extra cars will go.

Aminar replied that Perodua is only trying to protect is market leading share of 28% to 30%, and the big volume corresponds with projected total industry volume (TIV), which is expected to grow from the current figure of around 600,000.

CEO of Malaysia Automotive Institute (MAI) Mohamad Madani Sahari was at the event, and he told us that projected TIV for Malaysia is 750,000 units for 2015. You do the math.

With this announcement, Perodua is definitely ending the year with a bang. Some might have expected Daihatsu, which is big in Indonesia, to focus on our fast-growing neighbour as its base for ASEAN growth, but DMC has described Malaysia as a “key base for its overseas business.”

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Danny Tan

Danny Tan loves driving as much as he loves a certain herbal meat soup, and sweet engine music as much as drum beats. He has been in the auto industry since 2006, previously filling the pages of two motoring magazines before joining this website. Enjoys detailing the experience more than the technical details.

 

Comments

  • Abdullah on Dec 27, 2012 at 4:42 pm

    The government should open up the market instead
    of allowing Perodua and Daihatsu to make obscene
    profits at the expense of the Malaysian public.

    Well-loved. Like or Dislike: Thumb up 96 Thumb down 4
    • Gabla on Dec 27, 2012 at 5:17 pm

      Second picture is interesting, perhaps we need a new Proton as well? Even better, we actually need a new government.

      Like or Dislike: Thumb up 68 Thumb down 25
  • ah beng on Dec 27, 2012 at 5:06 pm

    well actually Perodua worried that their days of selling cheap car at high price are now counting… maybe after PRU13..who knows?! and after that day..no more 100% profit…

    Like or Dislike: Thumb up 52 Thumb down 7
    • kelvin on Dec 27, 2012 at 9:01 pm

      They are not enjoying 100% profit, but 200% profit with our Malaysian hard earn money.

      Like or Dislike: Thumb up 39 Thumb down 6
  • This is the hidden agenda of Daihatsu to control Perodua as overall rather than give locals any technology transfer…poor Perodua, they have gone to far from the 1994 establishment objective…

    Like or Dislike: Thumb up 53 Thumb down 5
    • Celicazz on Dec 27, 2012 at 6:52 pm

      cud b wrong

      Like or Dislike: Thumb up 4 Thumb down 3
    • unforgiven on Dec 27, 2012 at 8:33 pm

      Wrong, they are helping each others on how to telan rakyat money under the bright sun…

      Like or Dislike: Thumb up 11 Thumb down 4
    • But they are making tons of money. Sadly, technology rich company like Proton don’t make money.

      Like or Dislike: Thumb up 29 Thumb down 7
      • Expatriate VN on Dec 28, 2012 at 9:01 am

        This crappy car jaguh kampung how to make monies with the following biz model: –

        1) Selling crap quality car but inflated price under NAP to local to feed cronies!

        2) Selling good quality car but below cost (i.e. read local subsidize export market) in export market for syiok sendiri syndrome!

        Like or Dislike: Thumb up 12 Thumb down 7
      • p1 technology rich?! haha! joke of the last 25 years!

        Like or Dislike: Thumb up 11 Thumb down 3
  • GTR 2.0 on Dec 27, 2012 at 5:19 pm

    Urmmmnn… When can we know DRB-Hicom’s plan for Proton pulak?

    Like or Dislike: Thumb up 24 Thumb down 5
  • thebugbud on Dec 27, 2012 at 5:26 pm

    Only when all the “invisible” hands are deminished then we will have hope. That means, do away all of them and replace with hopefully clean ppl and things will turn to better.

    Perodua and Proton are not to blame since they are just another instruments of personal gain.

    Like or Dislike: Thumb up 21 Thumb down 12
  • asyik kena tipu ja on Dec 27, 2012 at 5:36 pm

    ahh sudah lama org malaysia kena tipu…kereta2 mampu milik dijual pada harga yg tinggi…sepatutnya harga keta perodua ni tak lebih rm20k je pon…proton pon sama..sykt tempatan ditubuhkan sbb utk bantu rakyat malaysia.. tp org kapitalis ni kira untung ja + tax yg merepek.. lepas tu bila masuk keta average mcm vios/almeera/city…wahh sapa yg mampu beli mmg rasa bangga gila..itulah kereta terbaik di dunia bagi dia..padahal kita semua kena tipu ja .. dah lama dah…masa utk buat pilihan akan tiba! tukar jom!

    Like or Dislike: Thumb up 19 Thumb down 6
    • malaysia on Dec 28, 2012 at 11:50 am

      But VIOS actually made in Shah Alam…but price still high…compare to Honda City which only got assembly plan and those body parts coming from Thailand…

      Like or Dislike: Thumb up 5 Thumb down 1
  • Davinnci on Dec 27, 2012 at 6:11 pm

    Mass production means car cheaper? If the answer is not. We kena CON by gov

    Like or Dislike: Thumb up 6 Thumb down 3
  • mivec101 on Dec 27, 2012 at 6:14 pm

    Building new factory alone will not save perodua post-2016 if they don’t drastically change their model line-up & their mentality. Come 2016, perodua will be severely overcapacity due to fact that the demand for their outdated and old-tech cars will nose dived to the ground. Right now perodua is selling the poor and outdated versions of latest daihatsu models. Gone missing are CVT, ESP/traction control, side/curtain airbags, stop/start buttons, turbocharged engine and EPS in some models. price different between perodua models and new comers are reducing (if not for the stupid tax, Mitsubishi Mirage will be selling at 35-40k, i really hope BN will lose in the next GE, they have been sucking rakyat money for way too long now, it is time for a real change). If u look at the coming updated ford fiesta, even more high tech features will be available in a car the size of MyVi. If perodua stick with the current models which are : MyVi, Alza and Viva for the next few years, then Perodua will definitely not survive beyond 2016.

    Like or Dislike: Thumb up 53 Thumb down 6
    • tokmoh on Dec 28, 2012 at 1:17 am

      U joking? Perodua salesmen just say their cars are rebadge toyota, can sell for eternity. What for new tech, unreliable n expensive to repair, all hail Toyota’s legendary 4-speed auto! Hooray

      Don’t trust me? Summoning Sam Loo to verify

      Like or Dislike: Thumb up 18 Thumb down 7
    • Expatriate VN on Dec 28, 2012 at 9:15 am

      Definitely with this new factory, they are able to sale locally with sub-brand sub-standard car, since different brand no one can complaint about specs and quality despite some of Daihatsu car and Perodua come from a same model.

      Like or Dislike: Thumb up 1 Thumb down 1
    • rickyll on Dec 28, 2012 at 8:40 pm

      Don’t just hope. Put your vote to change the situation, otherwise BN will still find ways to tax the rakyat to fill their cronies’ pockets.

      Like or Dislike: Thumb up 3 Thumb down 1
  • Expatriate VN on Dec 27, 2012 at 6:27 pm

    For our Jaguh Kampung No. 2, instead of Juara Kampung, always sing-a-song when come to future plan with catchy heading: –

    “Looking ahead: Proton’s future, at home and abroad”

    The above supposed to be announced on Nov 2012, no where come the time, they say will be make known by March 2012. As previously mentioned, this Plan-to-Plan will continuing with syiok sendiri syndrome and hope for permanent NAP protection.

    At least our Juara Kampung No. 1 doing a right thing with one-time-announcement-strike-bull-eye news with expansions and biz strategic plan. For our Jaguh Kampung No. 2, come March 2013, another round of dilly-dally and it is not surprising their “plan-to-plan” may postpone to year end 2013!!!!!

    Like or Dislike: Thumb up 11 Thumb down 6
  • Celicazz on Dec 27, 2012 at 6:48 pm

    cudnt agree more, perodua, proton, petronas and etc are just tools for them to gain personal interest. no doubt about that… to support incompetent cronies.

    Like or Dislike: Thumb up 4 Thumb down 2
  • nazri on Dec 27, 2012 at 6:53 pm

    maybe in future daihatsu will ‘eat’ perodua

    Like or Dislike: Thumb up 5 Thumb down 4
    • gOOsh on Dec 28, 2012 at 8:59 am

      i have to agree on your statement… and toyota will “eat’ everything after that…

      Like or Dislike: Thumb up 6 Thumb down 1
    • Expatriate VN on Dec 28, 2012 at 9:13 am

      Under open market, 100% sure!

      Like or Dislike: Thumb up 2 Thumb down 1
  • New plant. Good. But will it produce so call “GLOBAL” vehicle with good safety features, good quality, good performance, good handling, with good technology onboard? Only time will tell. Building state of the art production plant is tough but producing state of the art vehicle that is acceptable by the masses globally at reasonable cost is even harder.

    Like or Dislike: Thumb up 0 Thumb down 0
  • sharon on Dec 27, 2012 at 7:33 pm

    The reason to build a new company and a new plant is because the current 19 years old plant can not meet the all new Daihatsu car models manufacturing process. If Perodua not agree to build new plant, then no models for Perodua. Daihatsu worried with the old plant, the new models that come out will have lots of problems as not up to new process standard. At the end, Daihatsu to be blamed!

    With the new plant, Daihatsu will only then agree to “sell” their models to Perodua and rebadge it as Perodua’s. Perodua then pay royality to Daihatsu. Daihatsu makes RM (money).

    Perodua feels happy because they “Building Cars People First”!

    Like or Dislike: Thumb up 31 Thumb down 4
    • Expatriate VN on Dec 28, 2012 at 9:12 am

      This is the SOP since day one for re-badge arrangement!

      Like or Dislike: Thumb up 3 Thumb down 1
  • james on Dec 27, 2012 at 7:45 pm

    yup, i agree. As peroduan, daihatsu has their own agenda to take over perodua. They cannot survive in Japan’s market, then…using perodua, as their stepping stone. Theres no job opportunity for local Malaysians.

    Like or Dislike: Thumb up 10 Thumb down 4
    • Expatriate VN on Dec 28, 2012 at 9:10 am

      Take over Perodua sooner is better, this juara kampung no better than just re-badge cars for the sake of national car status! WTF is so important about this juara kampung? For the sake of that “vision” (i.e. read day dreaming) created by our former PM!

      Like or Dislike: Thumb up 4 Thumb down 1
  • Superman on Dec 27, 2012 at 7:57 pm

    Honestly, I don’t like it when dato MD of P2 trying to act like DSZ. He is far below in charisma and talk. We all miss DSZ. Hopefully p1 will do something good in 2013.

    Like or Dislike: Thumb up 11 Thumb down 3
  • LatukBandar on Dec 27, 2012 at 7:58 pm

    Since Perodua uses Daihatsu/Toyota technology, they are not allowed to export their car into markets these two are exporting/dominating.

    This leaves Perodua with no many market to export.

    Just like how Proton is not allowed to export Perdana because it is a rebadged of Mitsubishi Eterna.

    Perodua might as well close shop and let Proton be the national car and have proton compete with other foreign makes instead of a re-badge company that sells logo only.

    Like or Dislike: Thumb up 15 Thumb down 11
    • Expatriate VN on Dec 28, 2012 at 9:07 am

      No one stop Proton from export their car! Why need to close Perodua for the sake of this jaguh kampung to be national car. Your katak dibawah tempurung mentality might as well petition UN to close all car manufacturers in the world and make Jaguh Kampung be a world car?????

      Like or Dislike: Thumb up 3 Thumb down 3
    • start-a-figt on Dec 28, 2012 at 9:31 am

      Citroen, Peugeot have the same underpinning and same engine but different facia. even Daihatsu/Toyota is the same…

      they just need another brand to capture the base model market to compete with China’s car… with that in mind. they could shipped out those car to China dominated market and marked it as China’s price, Japan Quality, Build in Malaysia.

      Like or Dislike: Thumb up 0 Thumb down 0
  • Trinitrotoluene on Dec 27, 2012 at 9:39 pm

    You are leading because rakyat doesnt have much choice!!that is why u can lead with the lousiest after sales service….

    Like or Dislike: Thumb up 0 Thumb down 0
  • Julian Lee on Dec 27, 2012 at 9:49 pm

    I hope it is bankrapt in this new company. so we no more sucks local Perodua car.

    Like or Dislike: Thumb up 22 Thumb down 4
  • tokmoh on Dec 27, 2012 at 9:55 pm

    Sell so many Myvi until got rm790m for new plant?

    So earlier this year they protest BNM strict ruling just wayang kulit la? Bukan main lagi, time tu macam pussy sume pengecut kata BNM nak bankruptkan diorang, now got RM790m?!?! Songlap?

    Like or Dislike: Thumb up 25 Thumb down 7
    • dreaming of maserati on Dec 28, 2012 at 2:35 am

      sure got 790 million la. myvi 1.5 got tax advantage but selling at almost same price like nissan almera. how much profit they make? easily 100% ++ !!! betul betul greedy perut dua. you should bankrupt so rakyat wun be sucked dry by you anymore.

      Like or Dislike: Thumb up 5 Thumb down 2
    • umnokakipitnah on Dec 28, 2012 at 9:39 am

      not only perodua laaa…proton also complained bout BNM ruling

      Like or Dislike: Thumb up 3 Thumb down 3
      • dugong on Dec 28, 2012 at 11:06 am

        yes proton got complain too. but they are really losing money. perotdua made billions n yet complain!

        Like or Dislike: Thumb up 3 Thumb down 1
    • there is place called bank to get those money

      Like or Dislike: Thumb up 5 Thumb down 3
    • Sharon on Dec 28, 2012 at 8:29 pm

      Well, this plant more like Daihatsu owned!

      Like or Dislike: Thumb up 1 Thumb down 1
    • Sharon on Dec 28, 2012 at 8:32 pm

      Well, perhaps with this plant we can see Pero2 Sedan. Until today, still not interested with all their models. Hahaha….

      Like or Dislike: Thumb up 1 Thumb down 1
  • Hasan on Dec 27, 2012 at 10:26 pm

    GO die perodua

    Like or Dislike: Thumb up 8 Thumb down 4
  • nasurudin on Dec 27, 2012 at 10:43 pm

    nissan!

    Like or Dislike: Thumb up 4 Thumb down 3
  • napster on Dec 27, 2012 at 11:43 pm

    Well done PERODUA. Aware of its strengths, it has kept true to its business philosophy- focus on badge engineering & bring in the profits No need to have big goals when you don’t want or don’t have the capacity to invest sinful amounts of money.
    PROTON is today reduced to just 8,000 units a month with a model range of one sorry MPV, one Japanese re badge & a host of has beens.
    The Perdana was launched in the first half of the 90s, the Persona & the Gen2 were mistakes to begin with, while the Savvy…. well let is just consign that to “failure”.
    No I didn’t forget the “world car”… but the Preve looks set to be another Waja.
    l’d bet my money on PERODUA, anytime. Both as an investment, and as a successful carmaker.

    Like or Dislike: Thumb up 9 Thumb down 9
  • Dr Mamak on Dec 28, 2012 at 12:18 am

    Another tongkat ali projek by my facist regime. They were spoilt and weak to compete against real competition :(

    Like or Dislike: Thumb up 7 Thumb down 3
  • Nenek Jack on Dec 28, 2012 at 8:08 am

    Both Proton and Perodua enjoy Tongkat policy but looks like Perodua know how to use it better than Proton.

    That’s why Proton factory below-capacity collecting dust while Perodua lagi tambah kilang.

    But probably rakyat know that buah Perodua came from good tree to eat and avoid any fruit from pokok bantut eg. Pokok Proton.

    Like or Dislike: Thumb up 7 Thumb down 4
  • azrai on Dec 28, 2012 at 8:47 am

    Owh..so since late 90’s till today Perodua’s Rawang plant produce not to the global standar car? I wonder why most Malaysian still think their Myvi and Alza have Japanese Quality..The new Plant will meet the global standard (more quality) for export market and the current old lame factory will continously produced not to the par of global standard car for Malaysian own market.

    Like or Dislike: Thumb up 4 Thumb down 3
  • confused on Dec 28, 2012 at 8:59 am

    Kudos for creating 1200 new jobs.

    p/s: Paultan.org is a great automotive website with great articles from great journalists. Sadly, most of the readers can’t behave themselves and can’t comment rationally.

    Like or Dislike: Thumb up 12 Thumb down 6
  • farghmee on Dec 28, 2012 at 10:48 am

    interesting news indeed :)

    i can understand the writings clearly,
    yet i cannot comprehend the ppt presentation slide; “new company?”

    Like or Dislike: Thumb up 1 Thumb down 1
  • dugong on Dec 28, 2012 at 11:11 am

    new company will be called perut tiga…

    Like or Dislike: Thumb up 4 Thumb down 1
  • azrai on Dec 28, 2012 at 11:20 am

    Another reason for establishing a new company is to be able to get incentives from the government. Perodua has received incentives over the years to help it become competitive but after 19 years, some of those incentives have ended. However, a new company can apply for fresh incentives (eg tax–breaks) which would help it to achieve greater competitiveness.

    Like or Dislike: Thumb up 1 Thumb down 1
  • vee-oh on Dec 28, 2012 at 11:29 am

    wow can produce more Viva for ah bengs now

    Like or Dislike: Thumb up 5 Thumb down 1
  • Good job perodua, good plan ahead!

    Like or Dislike: Thumb up 2 Thumb down 1
  • Dimas on Dec 28, 2012 at 10:53 pm

    Checkout this story about Lamborghinis in Singapore! http://bit.ly/U5zFwM

    Like or Dislike: Thumb up 0 Thumb down 0
  • Perodua price but goverment control.. Net selling price from goverment – Dammmmm!

    Like or Dislike: Thumb up 0 Thumb down 0
 

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