Perodua to ramp up production to new high of 330,000 units this year


THE Perusahaan Otomobil Kedua Sdn Bhd (Perodua) plans to maximise its production to 330,000 units and sales to 314,000 units this year in view of anticipated strong demand, as well as for outstanding orders carried forward from last year.

Perodua president/CEO Datuk Seri Zainal Abidin Ahmad said the car manufacturer will soon meet its vendors to discuss measures needed to ensure that they are able to catch up with the production target for this year.

“For stock management purposes, they need to deliver beyond the target of 330,000 in order to cushion the impact of disaster, if any, such as what we learned from the flood disaster in December 2021.” he told a media conference today.

Currently, the normal installed annual production capacity for Perodua Manufacturing and Perodua Global Manufacturing plants are at 320,000 units on a two-shift cycle.

“We can still increase our volume by improving productivity and by instituting overtime, and with this target, Perodua is setting the highest target production since its inception in 1994,” he said.

The targets, 330,000 (2022: 289,054) for production and 314,000 (2022: 282,019) for sales, are 14% and 11% higher respectively, from its 2022 numbers.

On outstanding bookings, he said Perodua has brought forward 220,000 units booked in 2022 to be fulfilled this year.

He said the company is prepared to absorb the Sales and Services Tax for customers who will not receive their orders by March 31.

Apart from the vendors, Zainal Abidin said the semiconductor chip supply is still a challenge for manufacturers, not just for automotive players but industries such as electrical and electronics and other heavy industries that rely on the technology.

Based on the revised target of 650,000 units by the Malaysia Automotive Association (MAA), Perodua is confident that its total industry volume has the potential to reach 700,000 units this year, returning to the pre-pandemic level.

In terms of expansion, he said RM1.15 billion has been earmarked for capital expenditure to improve its group operations.

Besides ramping up its production capacity, he said the group will continue to invest in new technology, pre-owned vehicle and subscription business, industry localisation aspect, carbon neutral agenda and the electric vehicle programme.

It has allocated RM537.1 million for the development of multiple new models and RM24.7 million to modernise operations and upgrade existing 1S and 2S centres into 3S centres.

Separately, Perodua also released the All-New Perodua Axia which is now open for booking nationwide. The new car is said to be equipped with the most-advanced digital and safety features in its price class.

Its tentative price ranges from RM38,600 to RM49,500, with insurance in West Malaysia.