Perodua raises capex to RM1.6bil, focusses on expansion

Perodua raises capex to RM1.6bil, focusses on expansion

The car company will continue to support the automotive ecosystem with an estimated RM10.8 billion in local component purchases from vendors.

perodua
Perodua went beyond its manufacturing capabilities with a record 368,100 vehicles made in 2024. (Bernama pic)
PETALING JAYA:
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.

CEO Zainal Abidin Ahmad said in a statement today that the amount is more than double 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.

He added that this record was achieved by minimising downtime, keeping to the maintenance schedule, dynamic planning and coordination between its vendors and dealers as well as being agile in overcoming challenges.

Zainal said Perodua will emphasise self-reliance in terms of production capabilities, especially in developing future products this year.

He also noted that the 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% to 350,000 units from 368,100 units made in 2024.

“This reduction would see registration slowing by 3.7% to 345,000 units from 358,102 units last year,” he said.

Despite its planned slowdown in production and sales, Zainal 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% 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.

“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 said.

He said that, once the changes are completed, they will be able to strengthen their position in the country and region.

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