Malaysian automaker Perodua plans 86% boost in capital investment
KUALA LUMPUR, NNA – Malaysia’s leading automaker Perodua plans to boost its capital investment by 86 percent from a year earlier, to about 1.06 billion ringgit ($260 million) in 2020, the most substantial amount in five years, mainly to enhance production.
Of the total investment, the national brand carmaker under Japan’s Daihatsu Motor Co., will allocate about 500 million ringgit for the plants allocated to the development of new models, Zainal Abidin Ahmad, Perodua’s president, said at a press conference in the capital on Tuesday. He declined to elaborate further on details.
The automaker will spend about 180-200 million ringgit for the improvement of existing production lines, 150 million ringgit for research and development, and the remaining amount for sales and services activities.
The total investment planned for this year is far above an average amount of 537 million ringgit for five years through 2019.
Perodua also is seeking to increase production by 3.9 percent from a year earlier to 254,000 units in 2020, including those for exports.
The company, which holds a market share of around 40 percent, predicts total new vehicle sale in the domestic market totaling 610,000 units this year, slightly higher than the 2019 figure, supported by growing popularity in SUV models with a segment share of 24 percent, up from 20 percent last year.
The subsidiary of Daihatsu Motor maintains its 2020 sales target at the same as last year of about 240,000 units while seeking an increase in its market share in the SUV segment. In 2019, it sold a record high of 240,341 units in Malaysia, topping a target of 235,000 units.
Currently, Perodua only offers Aruz SUV, however. The company president declined to say whether the automaker plans to roll out a new SUV model this year.
Perodua owns two plants. At one of them, Perodua Global Manufacturing Sdn. Bhd. that produces compact models Axia and Bezza, the production rate in 2019 dropped 92 percent from 95 percent in the previous year due to some repairs of the five-year-old plant.