Perodua says it is working with Daihatsu to further develop its component suppliers to explore markets beyond Malaysia, forming part of the automaker’s commitment to help grow the country’s automotive support industries.

Perodua president and CEO Datuk Zainal Abidin Ahmad said the capabilities of its local suppliers was progressing strongly, moving on beyond mere production and piece processing, with two suppliers now part of the Daihatsu global parts supply chain. He added that Malaysian suppliers are close to Indonesian suppliers in terms of cost competitiveness.

The segment is also being buoyed by the continued uptake in vehicle production. “The increase in demand for our vehicles in the first six months of 2019 has had a positive impact on the automotive ecosystem as a whole, with parts purchases amounting to RM2.7 billion during this period,” he said during the presentation of the company’s 1H 2019 performance review earlier today.

The latter represents a 17.4% increase over the same period last year. As a result of the sales target being revised upwards for 2019, parts purchases for the year is also projected to climb to RM5.4 billion, a 12.5% increase over the RM4.8 billion achieved in 2018. This is further expected to grow in 2020 to RM6 billion.

The company has been engaging in a host of supplier development activities, including developing R&D at suppliers and promoting joint ventures. The latter includes JVs between Azman Hamzah Plastik and Sakamoto Industry for plastic fuel tank production, and Autokeen and H-One Co for press parts manufacturing in 2017 as well as that between local supplier Suria and Namicoh for press parts manufacturing, which started this year.