Perodua’s journey in Malaysia – 3.7m cars sold, 95% local content, RM6b local parts purchase this year

Perodua’s journey in Malaysia – 3.7m cars sold, 95% local content, RM6b local parts purchase this year

At last Friday’s launch of the National Automotive Policy 2020, DreamEdge brought out a prototype of its new national car project, which we’ve already showed you. Next to the boxed NNCP were actual national carmakers occupying the top two spots in the market today – Perodua and Proton.

Perodua had a Myvi and a mini display of its Advanced Safety Assist (ASA) system in its corner. But what caught our eye was the content on the booth’s background. Basically, it shows Perodua’s journey in Malaysia over the years, the milestones it has achieved, and also the company’s efforts and responsibilities in growing the Malaysian auto industry. What P2 has done for Malaysia, in short.

Now, the typical headlines involving Perodua usually has some sales or market share record, but the company is also very proud of its role in supporting the local vendor community and the automotive ecosystem as a whole. Because of its volume and high level of localisation, it buys a lot from local suppliers – for 2020, P2 expects to purchase RM6 billion of Malaysian-made parts, up from RM5.4 billion last year.

Perodua does three main things to play its part in the development of the local industry – the enhancement of R&D capabilities, the promotion of localisation and the development of local human resources. By developing its R&D capabilities and coming up with global levels of quality and cost; it benefits the company, its people and the local auto industry as a whole by raising standards.

Perodua has a vendor support centre (VSC) which ultimate goal is to improve vendor profitability and expand export opportunities for the suppliers. P2’s partner Daihatsu provides training support, and there’s also the resident support (RS) programme, where Perodua staff are “planted” in the vendors. These RS staff live and work as employees of the vendor, but their salary continues to be paid by P2. The RS programme has been ongoing since 2017.

Underpinning the big contribution to the local auto landscape is the high local content of Perodua’s cars. In the kei car era of the Kancil, Kenari and Kelisa, the localisation rate was between 60% to 80%. It stepped up a gear with the first-gen Myvi (86%) and has continued to rise ever since. Perodua’s three most recent new models – Bezza, third-gen Myvi and Aruz – have 95% local content.

Why not 100%? Perodua is part of the wider Toyota group, and when there are parts that can be shared to lower costs, it’s only logical to go for it. The NR family of engines, for instance, are widely used by Toyota and Daihatsu throughout the region. In a globalised market, parts come from all over the world – for instance, Hyundai’s South Korean plants has been facing shortage of parts from China due to the COVID-19 coronavirus outbreak gripping China. Nissan had to temporarily stop production in Japan for the same reason.

Lastly, scale. Perodua’s contribution to the local automotive industry is so big because well, Perodua is quite big itself. The Sg Choh-based carmaker recorded an all-time sales record of 240,341 units last year, with nearly 40% market share. In fact, since 1994, Perodua has churned out 3.7 million cars. The more you make, the more parts you need, it’s as simple as that.

And there’s more to come as well – Perodua is preparing a hot new SUV model for this year, underpinned by a plan to almost double its spending in investment for 2020, to a whopping RM1.06 billion (+86.2% from 2019).

Perodua’s journey in Malaysia – 3.7m cars sold, 95% local content, RM6b local parts purchase this year

“Half of it, about RM500 million, is related to factory investments, in modernisation, expansion as well as preparation for a future model,” president and CEO Datuk Zainal Abidin Ahmad said.

The company is also aiming to be an R&D hub for ASEAN, developing products with – and for – Daihatsu for the region. While acknowledging that the Japanese compact car expert has a sizeable arm in Indonesia, Zainal Abidin says that Perodua is ahead of Astra Daihatsu Motor in R&D. “In terms of R&D, at this moment Perodua R&D, in terms of testing equipment, investment and facilities, is bigger than Indonesia,” he said.

It’s clear that as the Malaysian market leader grows, the local automotive ecosystem, and the country itself, benefits along the way. It’s symbiotic.

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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

  • Leafable on Feb 24, 2020 at 7:39 pm

    3.7M perodua cars sold , amat menakjubkan !

    Like or Dislike: Thumb up 15 Thumb down 16
    • Murtabak kampung on Feb 24, 2020 at 10:44 pm

      This alone have proven that Malaysian trust in Perodua’s Game-Changing quality. Thank you for building Game-Changing cars for us, trully a National Carmaker!

      Like or Dislike: Thumb up 53 Thumb down 93
      • Celup King on Feb 25, 2020 at 12:39 am

        Someone been telling us how gamechanging Perodua but all they do is gameover people with their accident prone cars, they gameover the country by sending all profits back to Japan leaving us nothing and they gameover by promising gamechanging Kenari Hybrid since 2003 but 17 years later we still don’t see this car. With Dreamedge coming, Perodua is soon to gameover.

        Like or Dislike: Thumb up 11 Thumb down 3
      • John Minum Teh 8X on Feb 25, 2020 at 8:54 am

        People buy Perodua because got RV. For example….

        2020 Myvi RM50k
        2020 Iriz is RM50k

        3 years later you sell your car is 2023.
        Myvi will be RM39k
        Iriz will be RM16k

        Like or Dislike: Thumb up 4 Thumb down 3
        • Troll Hunter on Feb 25, 2020 at 3:21 pm

          We bilip you Kunta, just like we bilip you yesterday everything was okay at Putrajaya.

          Like or Dislike: Thumb up 7 Thumb down 0
      • Haji Babjee Sanusi on Feb 25, 2020 at 9:05 am

        We should withdraw National Car status from Potong because they are now a fully China company.

        At least Perodua got EPF, PNB, UMW and Khazanah as their majority shareholders. Jadi masih Malaysians wei

        Like or Dislike: Thumb up 5 Thumb down 4
        • Rakyat Malaysia on Feb 25, 2020 at 3:26 pm

          “Perodua is part of the wider Toyota group”
          Paul Tan already debunked that Perodua is a real national car maker. A big thanks to Paul Tan and Danny Tan for highlighting the truth. At last we got confirmation Perodua was all along a fake national car maker.

          I hope the new government will close down Perodua and force it to pay back all the incentives and tax deductions they received for 30 years as a fake national car maker.

          Like or Dislike: Thumb up 10 Thumb down 2
          • hadiawang on Feb 25, 2020 at 6:20 pm

            nonsense. perodua has been helping malaysians own quality cars for many years. it has also contributed tremendously to the economy. geely and proton contribute very little to malaysians and the economy. most of the profits go to china either to geely or their vendors.

            Like or Dislike: Thumb up 2 Thumb down 3
          • Safety First on Feb 26, 2020 at 8:49 am

            Poor quality cars you meant. Perodua cars are prone to accidents and they don’t provide adequate protection for the occupants inside. It is no wonder the boom of Perodua cars comes with the skyrocketing accident and road death statistic.

            Like or Dislike: Thumb up 6 Thumb down 3
      • Rakyat Malaysia on Feb 25, 2020 at 10:17 am

        Kesian. You talk about game-over so much, your employer has now game-over themselves. That is what happens when taking too much DEDAK, until the brain is full of DEDAK.

        Like or Dislike: Thumb up 7 Thumb down 0
      • Malaysian-made and Malaysian-built(assembled) is so much different. Malaysian-made is akin to Proton (bar X70), and Malaysian-built(assembled) is akin to every Perodua car.

        Like or Dislike: Thumb up 5 Thumb down 0
        • Ex VGM staff on Feb 25, 2020 at 8:55 pm

          Bar Inspira, bar ertiga, bar perdana Mk.II (accord body) and III (proton body)

          Like or Dislike: Thumb up 0 Thumb down 0
          • Safety First on Feb 26, 2020 at 8:50 am

            Minuscule compared to the majority homegrown cars.

            Like or Dislike: Thumb up 2 Thumb down 0
    • Amran on Feb 25, 2020 at 12:41 am

      Better to just close down Perodua. A real shame on our nation as they are nothing more than a national rebadger.

      Like or Dislike: Thumb up 8 Thumb down 3
      • Sam KK Loo on Feb 26, 2020 at 11:40 pm

        Worse, all Poodua models doesn’t have the bloody temperature gauge – the most important basic instrument in a car also can’t even provide, but stupid ugly rims (even steel rim looks far better – for baseline spec) and chromes where you can have free electrostatic shock, that one can provide, but with cheapest material with much higher price.

        Like or Dislike: Thumb up 0 Thumb down 0
    • Perodua makes the rakyat proud. Since the first year of inception till today, they have been paying company tax to LHDN to the tune of BILLIONS per year. This money, goes to the rebuilding of the country and infrastructure.

      Other companies on the other hand have been given exemption from paying income tax the past 20 years because it is loss making. So, they don’t pay 1 sen of tax to the Government.

      Double whammy, not only they don’t pay a single sen of tax, they have taken about RM20 billion in bailout the past 20 years to sustain the company.

      This is why Malaysians are proud of Perouda. Call it rebadger or what, does not matter, at least they make money and is not a burden to the public.

      I hope other companies learn to be like Perodua…hardworking and smart.

      Like or Dislike: Thumb up 2 Thumb down 3
    • John Minum Teh 8X on Feb 25, 2020 at 8:49 am

      Already lost in May 2018, yesterday coup also lost and failed, many are now very sore losers. So, they will come here and bash P2

      Enough of bashing lah. Try to live well and play clean

      Like or Dislike: Thumb up 5 Thumb down 10
      • Dude. This is an AUTOMOTIVE blog. You want to talk politics, please go away. PaulTan, kindly filter out unnecessary and irrelevant troll comments.

        Like or Dislike: Thumb up 9 Thumb down 1
      • Rahman on Feb 25, 2020 at 4:01 pm

        Shameless betul. Dah kalah teruk teruk, they still try to sabotage the current clean government and betray the rakyat

        Like or Dislike: Thumb up 2 Thumb down 4
    • Geely Boyue in China RM60k but Malaysia sell RM120k on Feb 25, 2020 at 9:16 am

      People buy Aruz or Myvi in Malaysia because the price is SAME SAME as Japan.

      Unlike Geely Boyue aka Proton X70. In China the CBU car sell RM60k

      But in Malaysia, the CKD Proton X70 sell for RM120k despite using local content.

      Like or Dislike: Thumb up 2 Thumb down 5
      • Spin Too Much on Feb 25, 2020 at 3:42 pm

        Someone was telling us Aruz and Myvi are sold in Japan but from here we can see that Aruz and Myvi have 95% local content, so this tells us Aruz and Myvi are never sold in Japan.

        Looks like he was lying to us all this time. I cannot trust what he said anymore.

        Like or Dislike: Thumb up 12 Thumb down 2
        • Some other guy on Feb 25, 2020 at 9:55 pm

          Very Noob, just like Proton X70@Geely Boyue, Perodua Aruz@Toyota Rush and Perodua Myvi@Daihatsu Sirion. Perodua Aruz & Myvi parts have 95% local content, while toyota & daihatsu use Japan part for their rush & sirion. What mean by price comparison of Malaysia and Japan was in Japan it was sold under Toyota and Daihatsu flag instead of Perodua, same goes Proton X70 which sold in China under Geely flag instead of Proton. As simple as that but some doesn’t understand. But not sure about Proton X70, how many % of its parts from China and how many % local. Perodua did a good job making it proudable national carmaker. Both Proton & Perodua are originated in Malaysia, not Japan not China. The difference is that, more than half of Perodua share still holds by local Malaysian company, while Proton on the other hand having half of it sold to China. Precisely why Perodua still maintaining as majority Malaysian owned company while Proton losing its Malaysian control and authority to China.

          Like or Dislike: Thumb up 1 Thumb down 1
    • Safety First on Feb 25, 2020 at 10:42 am

      3.7 million unsafe cars, not surprised why our accident and death rates is touching nearly 3.7 million. Coincidence? No, definite correlations.

      Like or Dislike: Thumb up 6 Thumb down 3
  • Truth on Feb 24, 2020 at 8:29 pm

    no wonder perodua cars are gerting lousy in quality

    Like or Dislike: Thumb up 6 Thumb down 1
  • MHK I on Feb 24, 2020 at 8:39 pm

    Well done Perodua, I think it’s all started since 1st model of Myvi they win MY people hearts, and they took a great care of that trust. I for one fell for that, bought and keep one of their car, with a good after sale service. Though I find more value in a comfort & good handling car make me prefer to drive other brands more often.

    Like or Dislike: Thumb up 1 Thumb down 1
  • Tse Tung on Feb 24, 2020 at 8:44 pm

    On ontop of that they build the safest sedan in the world with it’s outstanding “no acceleration / no top speed” technology. Hail to P2!

    Like or Dislike: Thumb up 0 Thumb down 0
  • Where is Nautica?

    Well-loved. Like or Dislike: Thumb up 56 Thumb down 0
    • MHK I on Feb 25, 2020 at 1:47 am

      Perodua unfortunate model, wrong timing, wrong pricing, hard lesson for them. Only a few hundreds sold, where you’re lucky enough to even spot one on the road. Guess it was a nightmare for them to even include the Nautica into the charts.

      Like or Dislike: Thumb up 1 Thumb down 0
    • Perodua contribute to the Economy. We are proud of you. At least you don’t have to gadai your company to Chima

      Like or Dislike: Thumb up 1 Thumb down 3
    • John Minum Teh 8X on Feb 25, 2020 at 8:51 am

      Dirty BN want to try backdoor entry to rule the country but failed. Thanks to honest people who run the country and great companies like Perodua who employ great people, Malaysia will always be great

      Like or Dislike: Thumb up 3 Thumb down 9
      • Please stop with the unnecessary and irrelevant political comments. These has nothing to do with AUTOMOTIVE AT ALL.

        Like or Dislike: Thumb up 5 Thumb down 1
      • RM1.50/L petrol mana? on Feb 25, 2020 at 4:02 pm

        Still trying to blame others for your failures eh PH? Dah mampus lagi tak serik2 buat bodoh lagi. This is why your can’t fxxking last half a term! Your have been overpromising but badly underdelivered and eventually collapsed from the pressure. It is like a blackhole sucking all the privileges and spoils that comes with power but your gave nothing back. When the pressure was too great your collapsed on yourselves. Well done PH! I hope your learnt your lessons this time not to lie to the rakyat just for our votes and take us as fools. I hope the rakyat gives your all telur for your all to remember forever.

        Like or Dislike: Thumb up 11 Thumb down 0
      • Fordist on Feb 25, 2020 at 4:08 pm

        Mod please filter out these comments. TQ

        Like or Dislike: Thumb up 1 Thumb down 0
    • Celup King Babu Proton on Feb 25, 2020 at 9:24 am

      Well done Perodua!

      Like or Dislike: Thumb up 0 Thumb down 1
    • History Bender on Feb 25, 2020 at 10:45 am

      Jepunis fanboys will say that car never existed in their reality. You can add in Rusa too. Remember that?

      Like or Dislike: Thumb up 2 Thumb down 0
    • Nautica = JDM on Feb 25, 2020 at 10:49 am

      Nautica is fully import from JDM, only the chrome painted plastic Perodua badge is local contain.

      Like or Dislike: Thumb up 2 Thumb down 0
    • Ghani on Feb 25, 2020 at 11:28 am

      Nautically lost at sea.

      Like or Dislike: Thumb up 4 Thumb down 0
  • Known on Feb 24, 2020 at 9:50 pm

    Well done Perodua. Hard work pays off. The rakyat will continue to support you

    Like or Dislike: Thumb up 5 Thumb down 8
  • HIDUP TUN on Feb 24, 2020 at 9:53 pm

    Mamak invited foreign manufacture to built car in Malaysia but none are interested as in 80s a imported car is cheaper than local assembly CKD due lower volumn. Without special status of national car for tax benefit and government initiative, none of them would built car in Malaysia. And slowly increase tax for imported car till they finally willing to CKD atleast half of their line-up in Malaysia.

    Like or Dislike: Thumb up 8 Thumb down 0
  • Dependable, spacious and fuel saving.

    Perodua, asean hub. We count on you.

    Like or Dislike: Thumb up 8 Thumb down 11
  • Celup King on Feb 24, 2020 at 10:36 pm

    But none of their cars can be considered a national car, or locally developed, or something we can be proud that we had achieved. In truth, there is nothing about Perodua we can take pride.

    Selling 3.7mil cars only tells us they sold 3.7mil unsafe deathtraps and the leading causes of road accidents and fatalities involving cars. You are guaranteed instant death in a major collision being inside any Perodua car.

    Like or Dislike: Thumb up 87 Thumb down 51
    • Proton is a rebadger. From Mitsubishi to China cars now. Nothing to be proud off too

      But at least P2 make money.

      Like or Dislike: Thumb up 4 Thumb down 3
      • Fake Alan so obviously just came out from a cave after hiding inside for 20 years and didn’t notice Proton own car development from Waja until new Persona.

        Like or Dislike: Thumb up 6 Thumb down 0
        • y not on Feb 25, 2020 at 6:15 pm

          you are right, until persona only. after that, no more. so proton the national car maker actually ceased to exist in 2017. afterwards it’s just a rebadger with very low local content use. and then still dare call themselves national car. whoever becomes PM8 must make this right and stop any special treatment given to proton seeing that it benefits china more than malaysia.

          Like or Dislike: Thumb up 0 Thumb down 2
          • What special treatment? Proton no longer has any protectionism since 2010. You should ask Perodua why they still asking for protectionism.

            Like or Dislike: Thumb up 4 Thumb down 1
    • John Minum Teh 8X on Feb 25, 2020 at 8:55 am

      This is why sales are always 4X more than PRoton. I rather believe sales figures than some frustrated paid keyboard warrior from Proton

      Like or Dislike: Thumb up 1 Thumb down 2
    • Haji Babjee Sanusi on Feb 25, 2020 at 9:02 am

      We bilip you john, just like we bilip you yesterday that there was new coalition.

      Like or Dislike: Thumb up 0 Thumb down 5
  • Dylan Ch'ng on Feb 25, 2020 at 1:22 am

    Would love to know the percentage of local parts of the Russ and Kembara

    Like or Dislike: Thumb up 0 Thumb down 0
  • “It’s clear that as the Malaysian market leader grows, the local automotive ecosystem, and the country itself, benefits along the way. It’s symbiotic.”

    This is why perodua is the true and only malaysian carmaker. like some carmaker who since recently simply rebadges china cars and sources most of the parts from mainland china. yet, it still got the national car status and enjoys protectionism. mind-boggling!

    Like or Dislike: Thumb up 1 Thumb down 3
  • The leading causes of road accidents and fatalities involving cars is usually sitting right behind a steering wheel.

    Take pride of them organizing a sleek production process.

    It’s easy to design a prototype, but incredibly complicated going into mass production.
    Something you will be reminded of with that new ‘national car project’.
    Or the heck, just look at the history of Proton.

    Like or Dislike: Thumb up 2 Thumb down 0
  • hadiawang on Feb 25, 2020 at 10:19 am

    oh please. the standards used to be higher when proton was around since they developed and manufactured all cars locally. but since proton died in 2017, no one can call themselves national car no more. closest is perodua who makes cars with 95% local content. so yeah agreed with you partly.

    Like or Dislike: Thumb up 3 Thumb down 0
  • meladam on Feb 25, 2020 at 5:45 pm

    I liked perodua cars. But, it would be nice if they use high stencil steel like proton car for better safety and rigid body

    Like or Dislike: Thumb up 1 Thumb down 0
  • Smoke Myvi on Feb 26, 2020 at 5:50 pm

    Price wins everything after all.
    Just be rational here. Most of the people pick P2 over japanese car is because of the pricing. Try to ask who still pick Myvi if you have the budget to buy jazz or yaris.

    Like or Dislike: Thumb up 2 Thumb down 0
 

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