The groundbreaking ceremony of Perodua and Daihatsu’s new engine manufacturing plant happened yesterday in Sendayan, Negeri Sembilan. The new facility is part of the companies’ business expansion plan in the area of engine, engine components and parts sales.

Expected to be completed and operational in the second half of 2016, the RM600 million plant will be able to produce 140,000 engine units of various capacities per annum on a two-shift cycle.

“This occasion is indeed very meaningful for Perodua as it signifies our confidence of growth in both domestic and global markets as well as our commitment in making Malaysia an automotive hub for the ASEAN region,” said Tan Sri Asmat Kamaludin, Perodua’s chairman.

The engine plant will not only fulfill P2’s future needs, but will be able to supply other OEMs in the region with components. “We believe that the demand for engine parts and components will largely come from the ASEAN Economic Community or AEC which will see a single market within the Southeast Asian region in the very near future,” he added.

Perodua’s partner Daihatsu is big in Indonesia, a massive market that’s set to be the largest in ASEAN. The Rawang-based carmaker produces the Daihatsu Sirion – a D-badged Myvi – for the Indonesian market.