Kuala Lumpur: Perusahaan Otomobil Kedua Sdn Bhd (Perodua) is increasing its capital expenditure (capex) to RM1.6 billion this year, with the biggest chunk reserved for plant improvements, raising stamping capacity, new model development and tooling.
Chief executive officer Datuk Seri Zainal Abidin Ahmad said in a statement that the amount more than doubled 2024’s capex of RM797.5 million as the company reinvests in its capabilities.
“These investments will consolidate manufacturing capacity, including at our vendors, level up service quality and productivity and solidify research and development (R&D) product planning as well as new model development capabilities.
“Perodua went beyond its manufacturing capabilities with (a record) 368,100 vehicles made in 2024, which is more than the 320,000-capacity for both its plants,” he said in the statement.
He added that this record was achieved by minimising downtime, keeping to the maintenance schedule, dynamic planning and coordination between its vendors and dealers and being agile in overcoming challenges.
Zainal Abidin said Perodua will emphasise self-reliance in terms of production capabilities, especially in developing future products this year.
He also noted that the compact car company is currently accelerating its people’s capabilities to achieve greater self-reliance but this will result in lower production and sales this year.
“For 2025, we foresee our production numbers declining 4.9 per cent to 350,000 units from 368,100 units made in 2024.
“This reduction would see registration slowing by 3.7 per cent to 345,000 units from 358,102 units last year,” he said.
Despite its planned slowdown in production and sales, Zainal Abidin said the demand for the vehicles remains healthy with current outstanding booking at 68,000 units.
On Perodua’s after-sales business, he said the company is expected to further improve its intake volume this year to 3.7 million vehicles, up 7.6 per cent from the 3.4 million recorded in 2024
“Perodua will continue to support the country’s automotive ecosystem with an estimated local component purchase of RM10.8 billion from Malaysian vendors,” he said.
The company is also working closely with the government to further enhance vendors’ and dealers’ capabilities, including exploring Industry 4.0’s potential in maximising efficiencies within their operations, conducting training and providing assistance for sustainable growth, Zainal Abidin said.
When the changes are completed, they will be able to strengthen their position in the country and region.
