An AmResearch report, referring to an interview The Edge Malaysia had with Berjaya Auto CEO Datuk Seri Ben Yeoh, states that Mazda Malaysia‘s production capacity has been doubled from 10,000 to 20,000 per annum.
The report ties it in with management’s earlier guidance that the commencement of a Mazda-dedicated trim and final shop by end-April would enhance the group’s capacity.
If this new shop has indeed been acquired, paint would be the only process remaining that Mazda outsources to Inokom, as it already owns its own body shop. Because of the outsourcing of processes to Inokom, capacity has to be shared with other makes that Inokom contract-assembles.
AmResearch expects a reduction in overall contract assembly fees paid to Inokom from the new plant (estimated at US$1,500-2,000 per car) as more processes are now undertaken by Mazda Malaysia’s own plants.
Of this 20,000 per annum, the group is looking to allocate 15,000 for the local market, which will help the long waiting list for the CX-5 (pictured), AmResearch quotes the report by The Edge. It adds that Berjaya Auto benefits more from domestic sales (which is captured under a wholly-owned subsidiary) than export sales, which is captured under 30%-owned Mazda Malaysia.
In line with earlier guidance, productions of the Mazda 3 CKD and Mazda 6 CKD are scheduled to start by the third quarter of 2014 and the second quarter of 2015 respectively. Berjaya Auto is targeting a sales volume of up to 15,000 next year.