Honda Malaysia opens No. 2 Line for small and hybrid cars at Pegoh plant to double production capacity

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Honda Malaysia has officiated its No. 2 Line at its Pegoh plant in Melaka. Occupying a built-up area of 49,190 square metres, the new line doubles the plant’s total production capacity from the current 50,000 to 100,000 units per year, and from 200 to 400 units daily.

The No. 2 Line, into which a total of RM382 million was invested, began production in November 2013. Like Honda’s Yorii plant at the Saitama Factory in Japan, the line specialises in “small models” and their hybrid variants. This leaves production of the current City, Civic, CR-V and Accord to the No. 1 Line, which has been operational since January 2003.

The new line currently builds the second-gen Jazz petrol and Jazz Hybrid, but it follows that in the future, the new City, the Vezel crossover and the third-gen Jazz (along with their hybrid counterparts) may be built here too. The line produces about 105 cars over one shift a day at present, but another shift is set to be added in the future.

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In line with NAP 2014‘s known aim to make Malaysia an Energy-Efficient Vehicle production hub for the region, exports out of the Pegoh plant could also happen in the future. The addition of the No. 2 Line brings the total area of the Pegoh plant to around 96,000 square metres, and 700 new associates are expected to come on board.

The No. 2 Line introduces a number of new technologies from the Yorii plant, including an automated Smart Welding Machine (the first outside of Japan), an advanced paint facility incorporating wall-mounted Spray Robots, Under Body Coating and continuous body dipping, and an enhanced Multi Driving Tester (MDT).

The MDT, situated at the Vehicle Quality section near the end of the line, involves four-wheel rollers on which a vehicle’s brakes and speedometer are put to the test. It can even check a hybrid’s IMA system and battery condition. Moreover, the MDT’s rollers are regenerative – on deceleration, they generate electricity to be fed back to the plant.

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Healthier and more eco-friendly waterborne paints are set to replace the current solvent-based paints for vehicle bodies in the future, while high-efficiency equipment, lean processes, the use of natural lighting and solar energy contribute to help Honda realise its global environmental target of a 30% cut in CO2 emissions by 2020.

Honda Malaysia has enhanced its overall operations over the past few years with a new parts warehouse, a 2.15-km test track facility, an R&D facility and a new pre-delivery inspection centre. It also recently switched to rail transport for delivery of parts between Thailand and Malaysia.

“We have set our mid-term plan to make additional investments of RM1 billion in three years starting in 2012, to the manufacturing and sales network,” said Honda Malaysia CEO Yoichiro Ueno. “This investment is crucial in strengthening our operations in order to meet our mid-term goal of achieving 100,000 units sales by 2016.”

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According to Ueno, Honda Malaysia targets to sell 76,000 cars in 2014 – about 40% more than it did last year. It also aims to increase parts localisation from 30-40% previously to over 70% in the near future, and the number of dealers in Malaysia from the current 70 to 90 by 2015. As of December 2013, the company has cumulatively sold more than 22,000 hybrids in Malaysia.

A total of around 600,000 Honda vehicles were delivered to Asia and Oceania last year, revealed Asian Honda Motor CEO Hiroshi Kobayashi, who was also there at the ceremony. This is targeted to double to 1.2 million units in those regions by 2016.

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Jonathan James Tan

While most dream of the future, Jonathan Tan dreams of the past, although he's never been there. Fantasises much too often about cruising down Treacher Road (Jalan Sultan Ismail) in a Triumph Stag that actually works, and hopes this stint here will snap him back to present reality.

 

Comments

  • Spirior on Jan 17, 2014 at 4:49 pm

    It is obvious that Honda Malaysia is going to be one of the major player in the EEV arena, in anticipation of the benefits offered in the soon-revealed NAP 2014. Not surprising, given that they have probably been in close contact with MAI in collaboration with DRB-HICOM, and based on the expected investment figure from Japan. Definitely Honda Malaysia had been one of the main influence on the NAP. I just hope that to the Malaysian motorists, this would translate to cars which are of better quality, choice, cleaner and most importantly more affordable.

    Like or Dislike: Thumb up 31 Thumb down 2
    • Oleoresin on Jan 17, 2014 at 9:08 pm

      Accordana will be assemble here…. just replace badge…

      Like or Dislike: Thumb up 2 Thumb down 12
    • Jagoh Kangkong on Jan 18, 2014 at 8:03 am

      Yes only Proton and Honda seems to know early what NAP brings ahead of other competitors. DRB once again being helped by MITI quietly.

      But who cares, they never play level field since day one. Pembuli will always be pembuli.

      Like or Dislike: Thumb up 10 Thumb down 3
    • kington on Jan 18, 2014 at 8:24 am

      Indeed, it is nice to see Honda setting a foot here and with a collaboration with DRB HICOM after Kah Motor. You can’t go wrong than partnering the country’s biggest industrial asset owner.

      But what saddens me is the lack of quality from locally made Hondas since the ES Civic, which is practically the first Civic assembled by this joint venture. I can’t speak for the entire industry, but from my pool of friends, i get the sense they get LESS complaints from their Perodua than the Hondas.

      Like or Dislike: Thumb up 6 Thumb down 1
  • Oh gosh, I can expect a CKD third gen H. Jazz?

    Like or Dislike: Thumb up 15 Thumb down 8
    • Just look at this guy or people…they don’t like ckd car so y need built car here in boleh? Just close shop n just make car in thai

      Like or Dislike: Thumb up 23 Thumb down 27
      • I am anticipated of a CKD version, the faster the better, and remember to price it lower than the current 2nd gen CKD petrol.

        Like or Dislike: Thumb up 4 Thumb down 0
  • Facebook on Jan 17, 2014 at 5:25 pm

    Don’t worry Honda, after you have sold Accord rights to Proton. Your market share in Malaysia will definitely drop, just like how Mitsubishi did.

    Like or Dislike: Thumb up 7 Thumb down 31
    • When Proton launched the Inspira, the new Lancer was also sold alongside it.

      This is not the case with the Perdana. Honda MY already launched the 9th gen Accord last year, before the new Perdana. The new Perdana is based on the older 8th gen Accord.

      There is no need to worry about marketing conflicts because there aren’t any in the Perdana’s case. Also, Mitsubishi MY’s sales went down because they did NOT have a good B-segment volume seller like the Vios and City.

      Like or Dislike: Thumb up 23 Thumb down 3
      • Jagoh Kangkong on Jan 18, 2014 at 7:54 am

        Stupid excuse from hardcore Proton macai

        Mirage and Attrage price clearly being forced to be more RM10K expensive than Thailand price, to make Proton SV much better buy.

        Lame trick by loser

        Like or Dislike: Thumb up 11 Thumb down 13
        • dino years on Jan 18, 2014 at 9:37 am

          how much more expensive is the vios compared to thailand?

          Like or Dislike: Thumb up 3 Thumb down 0
    • Proton sell new Perdana to government only, thus there is no effect to the latest Accord sold on malaysia.

      Like or Dislike: Thumb up 7 Thumb down 4
      • Jagoh Kangkong on Jan 18, 2014 at 8:00 am

        It will affect the resale value of same Accord model generation which is unfair and unnecessary loss to the Accord owner, given the fact that Spanco allowed to resell the rebadged govt Accordana to the govt officers or public auction it after contract maintenance period lapsed.

        Honda basically shooting itself on the foot, just like Mitsubishi did.

        Anyway among 60 million Japanese, not all of them are smart. Ada juga yang bodoh dan senang kena tipu.

        Like or Dislike: Thumb up 4 Thumb down 13
  • Guan Yin Ma on Jan 17, 2014 at 5:33 pm

    Honda – The number 1 dreamer.

    Like or Dislike: Thumb up 5 Thumb down 28
    • Jagoh Kangkong on Jan 18, 2014 at 7:52 am

      Honda – the power of dreams

      Proton – the power of day-dreaming

      Like or Dislike: Thumb up 34 Thumb down 6
  • policeman on Jan 17, 2014 at 5:41 pm

    I thought I saw Anwar.

    Like or Dislike: Thumb up 14 Thumb down 4
    • BLUR SOTONG on Jan 17, 2014 at 6:21 pm

      Lol. Like Anwar always said . They can be many Anwar lookalike . But there will always be only Anwar Ibrahim to expose the deeds of our Kangkong Govt

      Like or Dislike: Thumb up 24 Thumb down 32
  • Lpost on Jan 17, 2014 at 5:42 pm

    Good job honda and good luck! Will support your future product if the price is right.

    Like or Dislike: Thumb up 24 Thumb down 2
    • Jagoh Kangkong on Jan 18, 2014 at 8:05 am

      Honda Jazz CKD Langkawi – RM40K

      Honda Jazz CKD normal price – RM72K

      Who is fooling whom now.

      Like or Dislike: Thumb up 8 Thumb down 7
      • plz check the jazz price in langkawi. You are lying jagoh kangkong.

        Like or Dislike: Thumb up 3 Thumb down 1
  • dino years on Jan 17, 2014 at 6:55 pm

    at least honda gives vsc and airbags with the car, not adding it as a cost option.

    our lives are a cost option?

    Like or Dislike: Thumb up 14 Thumb down 4
  • Good, good, well done Honda MY. Unlike UMW Toyota, Honda MY is doing sensible things at least. Yes, Honda MY still won’t give us 6 airbags and ESC + TC standard, but at least they are moving ahead in the green technology area.

    I hope Honda MY squashes UMW Toyota’s sales in 2014. UMW Toyota has been No.1 non-national for too long, they’ve become incompetent and greedy.

    Sam Loo is soooo gonna kill me now.

    Like or Dislike: Thumb up 25 Thumb down 3
    • Fahmi on Jan 17, 2014 at 11:02 pm

      Looks like Honda has standardized ESP in its lineup (except City 1.5S), but number of airbags should be standard at least 6, more is better… Active and passive safety should come together… And yes I hope Honda MY crush UMW as the 1st non-national, in passenger car context maybe, but really it is very hard indeed as Toyota also depends on ‘commercial’ vehicles like Hilux, Fortuner and Hiace which Honda does not have any product sold in the segment..

      Like or Dislike: Thumb up 11 Thumb down 1
    • Jagoh Kangkong on Jan 18, 2014 at 8:07 am

      “for too long, they’ve become incompetent and greedy”

      You go tell that to Proton, OK macai.

      Like or Dislike: Thumb up 4 Thumb down 15
    • Sam Loo's Father on Jan 18, 2014 at 8:11 am

      Don’t worry, he won’t. He is too despair to talk now. I just bought him a KIA for birthday.

      Like or Dislike: Thumb up 3 Thumb down 2
    • Dynamic on Jan 18, 2014 at 8:41 am

      This is just the reward for allowing Govt to rebadge the Accord through Proton. With the potential new ruling, only malaysian assembled hybrids under 2000cc will still get the rebates whilst imported models will not. Hence making Honda hybrids the only one with a price advantage.

      Like or Dislike: Thumb up 4 Thumb down 0
      • Jagoh Kangkong on Jan 18, 2014 at 9:00 am

        Insider trading is a crime for Bursa share trades under Finance Ministry rule. OK that’s maybe not applicable for automotive industry….no wonder some car firm can sniff early tips and set up hybrid car factory ahead of others…

        Like or Dislike: Thumb up 3 Thumb down 4
  • Archangel on Jan 17, 2014 at 8:48 pm

    Well done Honda and all the best in the future.

    Like or Dislike: Thumb up 9 Thumb down 1
  • Fahmi on Jan 17, 2014 at 9:34 pm

    Good move from Honda this time in my opinion…

    Like or Dislike: Thumb up 8 Thumb down 1
    • Jagoh Kangkong on Jan 18, 2014 at 8:11 am

      Wonder who tell Honda to build factory early before revised NAP contents revealed….???

      Like or Dislike: Thumb up 3 Thumb down 6
  • Im not honda fan on Jan 17, 2014 at 10:46 pm

    look like honda will kill other market share especially toyota with their CKD price. and for sure other brand will reduce the price or increase their xtra features.
    btw im waiting VW Golf CKD or Jetta CKD.

    Like or Dislike: Thumb up 7 Thumb down 0
    • Jagoh Kangkong on Jan 18, 2014 at 8:08 am

      Because Honda being told early about NAP contents, that’s why they build new factory faster.

      MITI banyak bagus sama DRB.

      Like or Dislike: Thumb up 2 Thumb down 7
  • stone cold on Jan 18, 2014 at 12:22 am

    Excellent move by Honda.Hope they ckd the 3rd gen Jazz.Sure become best selling supermini in Malaysia.Overtake the Champion Myvi.Love their jazz and latest accord models:) New Nissan Note coming end of this year and maybe new jazz(unknown at this point of time),can finally sell my junk Myvi away!!! Later, Perodua sales will kaput:)LOL.

    Like or Dislike: Thumb up 16 Thumb down 1
    • Jagoh Kangkong on Jan 18, 2014 at 8:10 am

      You go relocate and live in Langkawi buy Jazz CKD only RM40K price.

      Like or Dislike: Thumb up 1 Thumb down 10
  • common sensor on Jan 18, 2014 at 8:15 am

    Omedetou Honda Malaysia .. Thank you for providing opportunity for the locals to grow!

    Like or Dislike: Thumb up 8 Thumb down 0
  • Green on Jan 18, 2014 at 9:08 am

    More chances that Honda City and Honda Vezel will follow suit as Honda Jazz – Produced in Malaysia instead of just CKD like others.
    –> towards No.1 non-national car sales

    Hence, we shall see official price drop of Honda City in New Generation.

    Like or Dislike: Thumb up 10 Thumb down 0
  • Einstein on Jan 18, 2014 at 11:01 am

    Samloo Toyota Hilux sales figure is more than enough for UMW to ditch behind Honda anual sales

    Yes double cab is the game changer. Honda got one??? Haha

    Like or Dislike: Thumb up 0 Thumb down 0
  • Double_Cabby on Jan 18, 2014 at 11:04 am

    Samloo Toyota Hilux sales figure is more than enough for UMW to ditch behind Honda MY anual sales

    Yes double cab is the game changer. Honda got one??? Haha

    Like or Dislike: Thumb up 0 Thumb down 0
  • Wow guys, just found out that the Philippines import their Hondas from Thailand factory. And guess what, they get their latest honda civic top of the line at 1,165,000 pesos, at 1 ringgit = 13.65 pesos exchange rate, is about 86k in ringgit. What the hell? With all the import costs they still get their honda with such a savings compare to us. We are getting around 132k ringgit. What . . . . . . Check this out. I got my info of the price from this person from the Philippine reviewing his latest civic. http://onlineawesomeshow.wordpress.com/2013/06/21/awesome-drives-honda-civic-2-0-el-modulo/

    Like or Dislike: Thumb up 5 Thumb down 0
    • Mossi on Jan 20, 2014 at 7:32 am

      then, ask the government.. is our tax structure same with Philippines for CBU? if not, then they will said, “kalau tak suka system cukai Malaysia, sila keluar dari Malaysia…”

      Like or Dislike: Thumb up 4 Thumb down 1
  • SpongeWai on Jan 19, 2014 at 12:10 am

    Sam Loo is big Toyota fan??!

    O.o

    How many Toyota car he has?!

    Like or Dislike: Thumb up 5 Thumb down 0
 

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