Perodua invests RM7 million to outsource old model parts production – Kancil, Kelisa, Viva, first-gen Myvi

Perodua invests RM7 million to outsource old model parts production – Kancil, Kelisa, Viva, first-gen Myvi

We always think of car plants as production centres for new cars and their parts, but rarely spare a thought for parts for discontinued models. Somebody’s got to make them, and they take up space and capacity. Perodua has now done something about it, by outsourcing the function.

Malaysia’s market leader says that it is centralising parts production for past models with the launch of a new press stamping machine at its supplier IQM in Tanjung Malim today. Perodua says that the move is one of its initiatives to help expand their vendors’ business and capabilities, bringing them one step closer to becoming global automotive suppliers.

Perodua made a RM7 million investment on the machine, including its transportation and installation. The 1,600 metric tonne hydraulic press stamping machine will produce body parts such as bonnets, side outer panels, rear quarter panels, fenders, doors and roofs for past old models such as the first-gen Myvi, Viva, Kelisa and even the Kancil. The dies required to make the parts have also been moved to IQM.

It’s win-win. For Perodua, this frees up much-needed factory space, simplifies the entire operation, reduces lead time and cost, and makes it easier to monitor production under one roof. Perodua also assists IQM in terms of skill transfer and training where past model parts production is concerned.

“Perodua’s decision to centralise past model parts production at IQM is four-pronged. One, we want to continue supporting owners of our past models with quality, quick and affordable parts through our body and paint business, because as long as you own a Perodua vehicle – old or new – we will always be there for you,” said Perodua president and CEO Datuk Zainal Abidin Ahmad.

“Two, we are committed to empowering all 135 of our Malaysian suppliers, not just by buying from them but helping to develop them via skill and technology transfers. Three, it represents our commitment to the nation and its economy by helping to boost the competitiveness of the Malaysian automotive eco-system. Finally, it represents our commitment to ourselves. To keep improving our quality and efficiency so that Perodua can be a better and leaner company moving forward,” he added.

Since rolling out the first Kancil in 1994, Perodua has sold over 3.7 million cars in Malaysia and currently, a third of the demand for Perodua parts is for past models.

On the topic of vendors, business from Perodua is vital. With all its current models having over 90% local parts content, the Rawang-based carmaker is the biggest buyer of automotive components in the country, having spent RM4.5 billion on parts so far this year out of an earmarked RM5.4 billion for the whole of 2019.

IQM has been a Perodua supplier since 2002. It currently does metal stamping, body assembly parts and brake tube components to P2. The company started making Viva parts when production of the model ceased in 2014, and early last year it began producing parts for the second-generation Myvi on a dedicated new line. For owners of discontinued models, this is reassuring news.

Looking to sell your car? Sell it with Carro.

Certified Pre-Owned - 1 Year Warranty

10% discount when you renew your car insurance

Compare prices between different insurer providers and use the promo code 'PAULTAN10' when you make your payment to save the most on your car insurance renewal compared to other competing services.

Car Insurance

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

  • Syabas P2. Perodua SUV D55L all da best !

    Like or Dislike: Thumb up 17 Thumb down 6
    • P2suv on Oct 29, 2019 at 10:05 pm

      Good job p2! P2 D55L will sell like hot cupcake. Habislah x50, rv oso dun hav. P2 D55L will hav good high rv.

      Like or Dislike: Thumb up 4 Thumb down 17
      • Mee goreng on Oct 30, 2019 at 7:57 am

        This shows that Perodua cares for their customers by willing to produce more parts for old models. This is why we see more old game changing Perodua cars than Proton as most of Proton old cars already game over and become junk

        Like or Dislike: Thumb up 2 Thumb down 5
      • Abang2 Basikal Lajak on Oct 30, 2019 at 9:57 am

        People may say all they want about P2 but P2 sales are always 4X that of Proton sales at the end of the year.

        This is despite Proton getting about 20,000 Government orders for their cars for Ministries, Government departments and PDRM yearly

        Like or Dislike: Thumb up 1 Thumb down 4
    • Phaser on Oct 30, 2019 at 12:37 am

      P2 is no match for Volvo. Volvo s60 the Best all rounder car, comfort & drive

      Like or Dislike: Thumb up 3 Thumb down 2
    • Abang2 Basikal Lajak on Oct 30, 2019 at 9:48 am

      Well done Perodua. You always make us proud. The past 20 years, every year you pay company tax to the tune of RM billions per year to LHDN and our Government. This money is used to build the country further.

      Proton on the other hand, not only have taken RM20 billion in bailouts, past 20 years never paid 1 sen of company tax also because they have been given exemptions as they are making losses

      Like or Dislike: Thumb up 1 Thumb down 4
    • Abang2 Basikal Lajak on Oct 30, 2019 at 10:03 am

      People may say all they want about P2 but P2 sales are always 4X that of Proton sales at the end of the year.

      This is despite Proton getting about 20,000 Government orders for their cars for Ministries, Government departments and PDRM yearly

      Like or Dislike: Thumb up 1 Thumb down 3
      • Isobel Chin on Oct 30, 2019 at 9:33 pm

        People will say yeah rambutans sells 1,000 times more than Musang King fruit but is it 1,000 times better than Musang King? 30million (minus one) will tell you that 1 Musang King is better than 1,000 rambutans.

        Like or Dislike: Thumb up 5 Thumb down 0
      • EDITOR on Oct 30, 2019 at 9:38 pm

        Same guy that tells us many sales of Proton cars are from Government but PaulTan burst his lie when they reported 98.7% of sales is from retail end customers. Your lie is only true unless got others to call it out. We’re are watching your next lie.

        Like or Dislike: Thumb up 4 Thumb down 0
  • Safety First on Oct 29, 2019 at 6:56 pm

    These old deathtraps should have been scrapped, not kept running and endangering their users. What Perodua should have done is to initiate a buyback program for their unsafe junks and offer a substantial rebate for their old car owners to buy their less unsafe but still junky cars. That is the least they could do for their customer’s welfare.

    Instead they prefer to continue milking their old junks until it meets an unfortunate end. I feel sorry for their customers.

    Like or Dislike: Thumb up 39 Thumb down 23
    • Brother on Oct 29, 2019 at 7:16 pm

      Scrapped? wait… Study, study..

      https://paultan.org/2017/10/30/study-for-vehicle-end-of-life-policy-at-final-stage-liow/

      Like or Dislike: Thumb up 5 Thumb down 2
    • seancorr (Member) on Oct 29, 2019 at 7:24 pm

      Do let me know any other manufacturer doing that for their old models then maybe P2 might just listen to you.

      Like or Dislike: Thumb up 4 Thumb down 6
      • History Bender on Oct 29, 2019 at 10:24 pm

        Proton had kept Saga in production for nearly 20 years before moving on. The world has moved on, even BMW no longer produces panel parts for Bangle era cars. Its time Perodua moved on from Jurassic period.

        Like or Dislike: Thumb up 8 Thumb down 6
        • BestP2 on Oct 30, 2019 at 9:56 am

          Tats why potong n bmw no rv car, bad rv cos parts hard to find n stop produce part. See like toyota, 30 yrs old model still easily find parts n still running good on this modern day road. Any komplem from them? Go n ask. Easy to get parts is one of keys for toyota n p2 success. Who care wat u said, still bunches of old kancil n old toyota still running on today road. Better than bmw nobody wanna buy 2nd hand n can timbang kilo besi buruk.

          Like or Dislike: Thumb up 0 Thumb down 3
    • Abang2 Basikal Lajak on Oct 30, 2019 at 9:52 am

      Too many P1 fanboys here. Proton was badly run. Only until Li Chunrong took over, in 6 months, the company became better again and started to have sales because Li Chunrong identified all the leakages and dedak.

      Before that, local abang abang CEOs could not identify the leakages in the past 20 years.

      So you cannot compare P1 to P2. Please never compare both companies.

      Like or Dislike: Thumb up 1 Thumb down 5
  • Sorry, all old Perodua models no longer exist. Save your RM7m

    Like or Dislike: Thumb up 14 Thumb down 13
    • Albert on Oct 29, 2019 at 8:05 pm

      Praying P1 can do the same deed.
      Plan to keep my lejen Wira 1.8 EXi DOHC C99 as family treasure…

      Like or Dislike: Thumb up 7 Thumb down 2
    • Coollllll on Oct 29, 2019 at 9:00 pm

      Basher will never stop jealous of p2 hardwork and success. All old perodua model will have high RV becos spare parts now is so easy to get. Thank you p2 for ur hardwork and understanding for rakyat. Even 3rd hand 4th hand kancil still can sell well now.

      Like or Dislike: Thumb up 13 Thumb down 14
      • History Bender on Oct 29, 2019 at 10:26 pm

        I don’t see how does high RV can save your life inside these old, unsafe cars when encountering an accident. Please beri pencerahan.

        Like or Dislike: Thumb up 13 Thumb down 6
        • U live in denial on Oct 30, 2019 at 10:01 am

          Ignorant person always live in denial world themselve like u. Driver themselve should drive carefull and be consider and tolerence wif others for the best safety on the road. So stop blaming car for worse accident. Its human error most of time. No matter u drive volvo ka bmw ka micidis ka, if u accident terok memang terok la tu.

          Like or Dislike: Thumb up 0 Thumb down 4
        • Abang2 Basikal Lajak on Oct 30, 2019 at 10:04 am

          Most Proton owners get heart attack when they sell their cars after 3 years. The bank tells them to top up their loans.

          Their heart pains so much asking what have I been paying the past 3 years?

          Then bank ask to top up the loan by RM20k

          Like or Dislike: Thumb up 0 Thumb down 5
      • Isobel Chin on Oct 30, 2019 at 1:54 am

        I’m glad that yr happy risking yr life in that deathtrap you call a car, but I don’t see what does it have anything to do with the greediness of Perodua continuing to squeeze people like you dry?

        Like or Dislike: Thumb up 3 Thumb down 0
      • Abang2 Basikal Lajak on Oct 30, 2019 at 9:54 am

        At least P2 makes money for the Government and has never asked for a single sen of bailout.

        Other companies have taken RM20 bil bailout and still not paid a sen back

        Like or Dislike: Thumb up 0 Thumb down 3
    • I still can see old myvi on the road, but dont see anymore that red Wira SE. Wat happen?? Kehkehkeh

      Like or Dislike: Thumb up 0 Thumb down 1
      • Frozen on Oct 30, 2019 at 9:35 pm

        Pity you. You live in a cave, otherwise come out and you can still see Wiras & Sagas zooming around.

        Like or Dislike: Thumb up 2 Thumb down 0
  • Li Peng on Oct 29, 2019 at 10:55 pm

    HFM is HEFEI METAIL FORMING INTELLIGENT MANUFACTURING CO.,LTD, CHINA

    It’s reassuring to learn that Perodua will rely on chinese quality machinery in the future.

    Like or Dislike: Thumb up 3 Thumb down 2
    • Jaguh on Oct 30, 2019 at 10:19 am

      Depending on how much the purchaser willing to pay, their quality can be very high

      Like or Dislike: Thumb up 0 Thumb down 1
    • It’s reassuring to learn that both Proton and Perodua will rely on chinese quality.

      Like or Dislike: Thumb up 2 Thumb down 0
  • gracke on Oct 29, 2019 at 10:57 pm

    It seems like they do not want us to buy EV and keep encouraging to the oldest vehicle. Shame!!

    Like or Dislike: Thumb up 1 Thumb down 0
    • 4G63T DSM on Oct 30, 2019 at 6:25 pm

      If its not for the red tape one has to go through to get it on the road, I would have converted our old Kancil to EV.

      Seriousy, the technical bit is easy. Getting it on the road is impossible.

      Like or Dislike: Thumb up 0 Thumb down 0
  • Amran on Oct 30, 2019 at 8:02 am

    I want to restore my old kancil 2000.. Thanks Perodua.. Perodua di hatiku.

    Like or Dislike: Thumb up 0 Thumb down 0
  • john doe on Oct 30, 2019 at 8:36 am

    P1 is heading towards trading company now by importing everything from China, contributing china GDP instead…lol

    Like or Dislike: Thumb up 0 Thumb down 2
  • newme on Oct 30, 2019 at 8:45 am

    Some brand don’t even have parts for their newly launched model.

    Like or Dislike: Thumb up 1 Thumb down 1
  • menteri_3_pedal on Oct 30, 2019 at 10:09 am

    YES!!!!

    i can keep my 1st gen 2005 myvi for another 20 years !!

    thank you perodua

    Like or Dislike: Thumb up 0 Thumb down 0
  • They still care bout their customer after selling the car. The value of the car is better as well as the brands perception. This is good for the consumers and also the company, really win win situation.

    Like or Dislike: Thumb up 0 Thumb down 0
  • Justice on Oct 30, 2019 at 8:12 pm

    both proton and perodua are useless

    Like or Dislike: Thumb up 1 Thumb down 3
  • congrats perodua. thorough approach to things. realistic & pragmatic. no need big words or far-fetched vision. in doing so, maintaining trust and quality. no need to call itself national carmaker because all malaysians know how malaysian perodua is. good job, the one true and only malaysian car icon.

    Like or Dislike: Thumb up 1 Thumb down 0
 

Add a comment

required

required