Toyota confirms new Malaysian plant in Klang – RM2 bil investment, 50k capacity, early 2019 operations

toyota malaysia new plant

Toyota Motor Corporation has confirmed plans to build a new factory in Malaysia. The new plant will be located in Bukit Raja Industrial Estate, Klang, and will have an initial annual production capacity of 50,000 units a year, which can be expanded with increased demand. Combined with the current factory, Toyota’s Malaysian production volume will be around 90,000 to 100,000 units per annum.

UMW Toyota Motor (UMWT) will invest approximately RM2 billion for this project, a total sum that includes land cost, construction, equipment and engineering support from Thailand and Japan. It is the biggest investment ever by UMWT in the company’s history.

The 670,000 square metres new plant is part of Toyota’s plans to reorganise its production system in Malaysia. The current Assembly Services Sdn Bhd (ASSB) factory will be left to focus on the production of commercial vehicles, while the new plant takes on production of passenger cars, including Energy Efficient Vehicles (EEVs).

toyota malaysia plant ssf

Construction of the new plant, which is 10 km away from the current ASSB plant and near to Port Klang, will start in the second half of this year. Toyota expects production to start in early 2019, the time when the ASSB plant will cease to roll out passenger vehicles.

Toyota says that the new “Simple, Slim and Flexible” plant will be one of its most advanced in the world, the next step in its efforts to create competitive plants using innovative production technologies such as freely extensible lines and compact painting booths; features which will also be introduced in Toyota’s new Mexican plant and new Chinese line.

“This plant is another of our efforts to create new, competitive plants, following the decisions made last year to create a new plant in Mexico and a new line in China, and the opening of two new engine plants this year in Indonesia and Brazil,” said Tatsuro Takami, managing officer at Toyota Motor Corp.

Screen Shot 2016-05-25 at 6.26.08 PM

“In addition to introducing cutting edge production technologies, we will dedicate ourselves to developing the personnel who support the making of ever-better cars. By doing this, we will provide high quality vehicles to Malaysian customers through UMWT,” added Takami, who is in Malaysia for the announcement.

At the press conference, it was revealed that the Vios currently has a localisation rate of 50%, and the company aims to increase this figure with the new plant. The products of the new plant will be for domestic consumption, and Toyota sees growth in the Malaysian auto market in the mid to long term. Additionally, Toyota Boshoku UMW, a joint venture between UMWT and Toyota Boshoku Corporation Japan that supplies seats and and interior components, will also move its production activities to the new plant.

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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

  • Oh yeah, sumimasen :)

    Like or Dislike: Thumb up 32 Thumb down 0
    • ProtonGSC on May 25, 2016 at 1:10 pm

      Ok cronies win big time… will future models get cheaper price???

      Like or Dislike: Thumb up 10 Thumb down 17
      • Jaw jaw on May 25, 2016 at 2:00 pm

        Jaw dropping.. They thought no investor will do business in Malaysia..Suddently big slap come from TMC… If no plant blame government,now they invest new plant blame cronies pulak.Malaysian never satisfy unless he can get benefit for himself..Jealousy at it best!

        Like or Dislike: Thumb up 30 Thumb down 15
        • Operation Manager on May 25, 2016 at 10:07 pm

          2b thanks to owner VIOS 90K(50k) ALTIS 120K(60k) CAMRY 150K(75k) bloody work hard 9yrs installment money

          Like or Dislike: Thumb up 0 Thumb down 1
          • Bhaskaran Arunasalam on Jul 19, 2019 at 11:18 pm

            Toyota new model vios G paint work very poor i don’t know how many paint layer and this is my car just buy paint front bumper chip off got defect ,just one month car , I’m complaint to service center melaka still waiting for answers. I buy first toyota car but got problem.

            Like or Dislike: Thumb up 0 Thumb down 0
      • Who are cronies?

        Like or Dislike: Thumb up 2 Thumb down 1
      • DonkeyKong on May 25, 2016 at 2:15 pm

        Big flashy new manufacturing plant, but the production line will lack stations for installing airbags and VSC systems. The steel stamping stations will still be happily using mild steel blanks because heck, who needs Ultra High Strength Steels when you’re driving a Toyota..

        Like or Dislike: Thumb up 6 Thumb down 8
        • Bro. U will notice in their bullet points above, that “Better Safety” is missing somewhere.

          Like or Dislike: Thumb up 2 Thumb down 0
          • DonkeyKong on May 26, 2016 at 11:05 am

            Toyota is still mainly using 500MPa UTS high-strength steel for their Camry, Vios etc. and even Honda’s still using that as the strongest car member up till the previous Honda City, Civic and Accord.. And yet, people will say these cars are solid while Protons built with 1500Mpa UTS hot-stamped boron steel are labeled as “milo tin”. No wonder Malaysia is descending into a failed state.. too many low-IQ morons around..

            Like or Dislike: Thumb up 6 Thumb down 1
      • targa on May 25, 2016 at 2:19 pm

        Price & spec will definitely NOT be reduced. One can expect less sound proofing between Honda and Toyota.

        Like or Dislike: Thumb up 3 Thumb down 0
      • Want cheap? Continue buy your proton.

        Like or Dislike: Thumb up 4 Thumb down 6
        • Wan early afterlife? Continue to buy toyotas/P2

          Like or Dislike: Thumb up 2 Thumb down 0
          • Really? on May 26, 2016 at 7:20 pm

            ironically, we all know there is a large gap in term of defect possibility between toyota and proton on the road in the past years. but still, why are you needed to curse one another.

            Like or Dislike: Thumb up 1 Thumb down 0
      • SuprimaS Owner on May 25, 2016 at 2:59 pm

        ProtonGSC, investment came in not right, investment not coming you bash. Everything is not right for you. Please at least once be positive brother. Investment masuk cakap crony. You masuk la invest. Negative minded people only knows to complaint.

        Like or Dislike: Thumb up 5 Thumb down 2
    • puchong on May 25, 2016 at 1:39 pm

      kumpol dueeet..Toyota CH-R ckd^^

      Like or Dislike: Thumb up 8 Thumb down 0
    • hailthepurist on May 25, 2016 at 1:55 pm

      jobs..

      Like or Dislike: Thumb up 6 Thumb down 0
  • New plant? if any vacancy, please cc to me =P

    Like or Dislike: Thumb up 9 Thumb down 0
  • nabill (Member) on May 25, 2016 at 12:46 pm

    ‘Simple, slim and flexible.’… Ironically thats how most toyota cars feel like…

    Like or Dislike: Thumb up 23 Thumb down 4
  • new plant? if any post available, cc to me =P

    Like or Dislike: Thumb up 2 Thumb down 0
  • sohai samelorr on May 25, 2016 at 12:48 pm

    some sohai ppl still think think their toyota car made in Japan?

    Like or Dislike: Thumb up 8 Thumb down 5
    • policeman on May 25, 2016 at 1:00 pm

      Why would you think that your Toyota is made in Japan?

      Like or Dislike: Thumb up 10 Thumb down 1
    • sohemm on May 25, 2016 at 1:13 pm

      If not enough capacity to meet high demand, they can buy some empty car factory in Tanjung Malim.

      Like or Dislike: Thumb up 10 Thumb down 3
    • Srabai on May 25, 2016 at 4:06 pm

      Most ppl think they drive doraemon & nobita origin car..not to realise the car coming from chiang krung krai mai thai.Khuwahuahuahua

      Like or Dislike: Thumb up 6 Thumb down 0
  • ANONYMOUS on May 25, 2016 at 12:54 pm

    Proton pls take this opportunity to close down and all their workers work at Toyota new plants. So that car price will down. Car buyers happy, proton workers happy, toyota happy and Tun M unhappy ~~

    Like or Dislike: Thumb up 16 Thumb down 12
    • protek on May 25, 2016 at 2:18 pm

      Why in Thai cars are still expensive?

      Like or Dislike: Thumb up 4 Thumb down 2
    • Honda had open their factory in Malacca. Sorry to disappoint you, Proton still not close shop.

      Like or Dislike: Thumb up 4 Thumb down 1
    • In SG, cars r with 300% COE. minimum. Axia can go up to 500%. Mau?

      Like or Dislike: Thumb up 3 Thumb down 0
  • Albert on May 25, 2016 at 12:56 pm

    The immediate concern with UMW…is SALES.
    Why has Honda overtaken Toyota here?
    1.Aggressive new product launching
    2.Very productive and friendly salesforce
    3.Very competitive pricing
    4.Up to date technology/specs
    5.Listens to customer’s requirements
    How toyota tho a good brand has not delivered.
    Toyota Japan….you can build 10 factories here.The unsold stocks will pile more pressure on you.You have to discover why UMW is failing inspite of your worldwide reputation,which is in tatters now in Bolehland.

    Like or Dislike: Thumb up 21 Thumb down 7
    • accord owner on May 25, 2016 at 2:01 pm

      Friendly sales force??really??? Used to get accord at sg.buloh autoword asia (honda dealer) … not so friendly.. only after i booked the car then they being “friendly”… just because i walked in with “selekeh” cloth.. damn la honda.. toyota 2×5

      Like or Dislike: Thumb up 2 Thumb down 2
      • Albert on May 25, 2016 at 4:13 pm

        Mr.Accord owner,
        Perhaps u kena a bad apple.Overall,they are friendly.
        Actually Toyota’s salesforce extra friendly now cos they got poor sales.
        But why people migrating to Honda?
        Isnt Toyota a giant ?
        Not so here in Bolehland.
        My son’s vios waiting for more than 5 weeks.Still no damn spare parts in sight.And they dont even call u to update u.
        When we call HQ ,they said the lady having prayers at 4pm.OMG…what type of service is this? You call this world class?

        Like or Dislike: Thumb up 3 Thumb down 1
    • karam singh on May 25, 2016 at 6:07 pm

      Toyota sales not affected by Honda. Toyota Malaysia still records the same sales figure year after year for the past 9 years or so. Which is between 88-100k. It was proton and other brands that affected.

      Like or Dislike: Thumb up 0 Thumb down 2
  • Danny, this means that the cars will be CKD-ED?

    Like or Dislike: Thumb up 0 Thumb down 5
    • Most Toyota car to UMW already CKD ed at Shah Alam essembly plant… Parts from Thai

      Like or Dislike: Thumb up 6 Thumb down 0
    • Danny Tan (Member) on May 25, 2016 at 3:08 pm

      Toyota has been assembling cars in Malaysia for decades now. The new plant will in the future assemble passenger cars, leaving the current Shah Alam plant to focus on commercial vehicles

      Like or Dislike: Thumb up 5 Thumb down 0
      • alldisc on May 25, 2016 at 6:11 pm

        Current plant is the one where Toyota had assembled many models including corolla ke30, ke70 DX and GL, corolla LE, SEG and altis. And corona. And camry. And landcruiser Prado. And hilux. It is so old and difficult to expand to prepare for the coming 20 years.

        Like or Dislike: Thumb up 0 Thumb down 0
  • Toykotak on May 25, 2016 at 1:20 pm

    What does this plant do? Take the safety features out of imported Toyotas?

    Like or Dislike: Thumb up 4 Thumb down 2
  • common sensor on May 25, 2016 at 1:25 pm

    2 Billions for a 50,000 units per year factory is a daylight robbery ..

    Like or Dislike: Thumb up 3 Thumb down 2
  • hanye tan on May 25, 2016 at 1:29 pm

    they are taking advantage of EEV vehicle production incentive by government. which means we will see another wave of toyota hybrid cars added onto malaysian roads.

    Like or Dislike: Thumb up 1 Thumb down 0
    • Taking advantages to claim more profit from EEV, not to channel the profit to customer.

      Like or Dislike: Thumb up 1 Thumb down 1
  • Toyo-tata on May 25, 2016 at 2:46 pm

    Will Toyota say ‘ta ta’ to Malaysian passenger cars and instead import form Indonesia either in CKD or semi CKD form? They could easily easily re-badge a Daihatsu from Indonesia and put a Toyota badge when they assemble it here and charge Toyota prices and make tons of profit!
    Why not? It’s all about production costs and profits, in the end. And buyers would think they got the ‘real thing’!

    Like or Dislike: Thumb up 0 Thumb down 3
    • That already happened for almost 10 years. The Toyota rush is a CBU from Indonesia.

      Like or Dislike: Thumb up 1 Thumb down 0
      • alldisc on May 25, 2016 at 6:12 pm

        And so is the current Avanza – imported from Indonesia as well.

        Like or Dislike: Thumb up 1 Thumb down 0
  • azrai on May 25, 2016 at 3:22 pm

    Set up new plant for UBER-TOYOTA JV?

    Like or Dislike: Thumb up 0 Thumb down 0
  • sepul on May 25, 2016 at 5:27 pm

    The factory probably at 80% complete as I’ve seen the facility while out for lunch last month with colleagues.

    Like or Dislike: Thumb up 0 Thumb down 1
    • Paul Tan on May 26, 2016 at 7:49 am

      That building is the PDI centre which is next to the land that this factory will be built on.

      Like or Dislike: Thumb up 2 Thumb down 0
  • iskhalifah (Member) on May 25, 2016 at 6:14 pm

    Quite a strategic move as UMW also got paint center somewhere in Bukit Raja vicinity. But what baffles me is the fact that UMW is not leveraging on Perodua’s PGM new factories. Assuming that Toyota took 100% stake in Daihatsu, Toyota is already an indirect owner of Perodua. Perodua should be a positioned as Toyota’s sub-brand for Asean region, where platforms are shared between one another. There should be a deeper partnership like the one in Indonesia to boost Perodua’s export market (The Myvi badged Sirion is not doing well there as compared to Jazz). In this case, probably UMW stakeholders (or perhaps Toyota Japan) doesn’t want to lose Toyota’s branding power, and continue milking profit from Perodua.

    Like or Dislike: Thumb up 4 Thumb down 1
  • Axia Advanced (pun intended) on May 25, 2016 at 8:09 pm

    Nice. Spanking new, one of Toyota’s most advanced factory in the world to assemble vehicles with no VSC.

    Like or Dislike: Thumb up 0 Thumb down 2
  • wayang on May 25, 2016 at 9:49 pm

    Heheh “car enthusiast” here will buthurt even more
    Especially those who says Toyota cars are moving coffin
    They are setting up coffin shop here for you
    Still want complain?
    Maybe can move to other country, because you know one or two less security feature suddenly the car can kill anyone and everyone

    Maybe “car enthusiast” here needs to buy more ky jelly

    I recommended ky jelly but not a ky jelly salesman or insider ya

    Maybe Toyota should offer those whiners and bashers here an opportunity to work in the automotive industry and see how hard tough the industry is since they now have a new plant in Malaysia

    Like or Dislike: Thumb up 0 Thumb down 3
    • Is this sammy newest dupe kah? Then I will tell u how to tell ur boss how to increase toyota sales thru the roof. And this is FOC, seeing how ur 77% sales drop almost gip u multiple heart attacks.

      All toyota need to do is to partner with nirvana to gip free 1 burial plot for each car sold. Its so that ur customers will have peace of mind when encountering an accident, by being able to Rest In Peace.

      Like or Dislike: Thumb up 1 Thumb down 0
      • wayang on May 25, 2016 at 10:44 pm

        Why dont you tell that directly to Toyota
        Maybe they will like your idea and make you CEO of Toyota Malaysia/Asia Pacific with your brilliant idea?
        Perhaps as an incentive they might give you 0.1% commission on total sales figure
        In no time you can be hugging some JAV actresses and complaining in Ferrari forums about how shitty their car suspension is as your Jav gf’s fake silicons jiggles too much in a Ferrari

        Like or Dislike: Thumb up 1 Thumb down 1
  • Hahahaha on May 25, 2016 at 10:21 pm

    Sell to who?
    Even i was a hard core toyota fan also.give up after ur poor aftersales service center in johor.

    Like or Dislike: Thumb up 3 Thumb down 1
  • Ikan bilis on May 26, 2016 at 9:15 am

    When your investment only for Malaysia market but not export you know something is wrong and fishy…

    Like or Dislike: Thumb up 1 Thumb down 0
  • Sammy Loo on May 27, 2016 at 12:35 am

    catering for more volumn in coming years, wawasan 2020

    Like or Dislike: Thumb up 1 Thumb down 0
  • hyin21 on May 27, 2016 at 10:45 am

    what??? No autopilot???

    Like or Dislike: Thumb up 0 Thumb down 0
  • hashem on May 18, 2018 at 4:29 am

    Toyota is always impressed by the wonderful work, we see technology through Toyota

    Like or Dislike: Thumb up 0 Thumb down 0
 

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