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The automotive industry in Malaysia is a growing market, with customers worldwide (except for the Americas and Continental Europe). Malaysia is the third largest South-East Asian automaker, outputting more than half a million vehicles per year. Some of the Malaysian companies produce some models in collaboration with Japanese, Chinese, South Korean or European manufacturers, while also developing fully indigenous Malaysian made cars.
Contents
Overview
"The rapid growth of the economy and the high purchasing power of its population have made Malaysia the largest passenger car market in ASEAN. At the same time, the establishment of national car projects, PROTON and PERODUA, has transformed Malaysia from a mere motor car assembler into a car manufacturer. The industry has boosted the development of engineering, auxiliary and supporting industries and contributed to skills development and the upgrading of technological and engineering capabilities. These factors have further enhanced the attractiveness of Malaysia as a base for global automotive manufacturers."
Market size
The industry produced a total 614,664 vehicles including 563,883 PVs and 50,781 commercial vehicles (CVs) in 2015, as against 596,418 in 2014 (545,122 PVs and 51,296 CVs), registering a marginal growth of 3.05 per cent, year-on-year.
The sales of automobiles year-on-year didn't grow, but on a 5-year range CAGR (2010-2015), the automobile industry had a yearly growth of 2%.
Malaysian car companies
Malaysian car manufacturers include:
Proton
National car company Proton currently operates three manufacturing plants in Malaysia, with a combined maximum annual capacity of 360,000 units. The original Proton plant in Shah Alam was built in 1985, and was later complemented by the smaller MVF plant in 2000. The third Proton factory near Tanjung Malim commenced operations in 2004, and was built as part of the Proton City project. Perusahaan Otomobil Nasional (PONSB) handles operations at both plants in Shah Alam, while Proton Tanjung Malim (PTMSB) operates the plant at Proton City.
Proton's first plant commenced operations in mid-1985, with the first unit being a Proton Saga 1.3L saloon. Initially, Proton had assembled the Saga with complete-knock down (CKD) kits, engines and components which were imported from Mitsubishi's facilities in Japan. Local content in the 1985 Proton Saga stood at 18%, with just 13 local components. By mid-1989, local content had risen to 69%, with over 453 Proton-manufactured components and a further 356 locally-sourced parts from 56 local vendors. In June 1989, Proton commenced engine assembly at their dedicated Engine and Transmission Factory.
Construction of the Medium Volume Factory (MVF) was completed in 2000. The MVF plant was built adjacent to the original Proton factory, and produced the Proton Waja upon its debut. The MVF plant was built at a cost of RM400 million, and accommodated modern assembly practices like modular assembly and Automatic Line Control (ALC).
Construction of an all-new Proton factory commenced in 1996 near Tanjung Malim, in anticipation of increasing sales of Proton cars in the near future. However, its construction was deferred in late 1997 as a result of the Asian financial crisis. Construction resumed in January 2001, and was completed in 2003, and the plant's first Proton GEN•2 models rolled-off the production line in early 2004. Proton's Tanjung Malim complex is five times larger than their Shah Alam complex, and was built at a cost of RM1.8 billion. At its debut in 2004, the Tanjung Malim plant employed 2,000 workers, featured 180 robots, and had a 60% automation rate. It was billed as the most advanced automobile factory in the Asia-Pacific region, outside Japan and Korea.
Perodua
Market sales leader Perodua currently operates two manufacturing plants in Malaysia, with a combined maximum annual capacity of 350,000 units. The first Perodua plant in Serendah commenced operations in 1994, and was later complemented by a larger adjacent factory in 2014. Perodua Manufacturing (PMSB) handles operations at the older plant, while Perodua Global Manufacturing (PGMSB) operates the newly built factory.
Perodua's first plant commenced operations in July 1994, with the first unit being a Perodua Kancil 660cc. Like Proton, Perodua benefited from Japanese technology transfer in its early stages of development. Perodua's products are based on Daihatsu-engineered platforms and engines, and Daihatsu has led Perodua's manufacturing operations since 2001. Perodua had previously assembled the first generation Toyota Avanza under contract, and the company currently produces models with Daihatsu badging for export to the Indonesian market.
In December 2012, Perodua announced plans for an all-new factory, to be built adjacent to their original plant in Serendah. Construction commenced in March 2013, and completed in late 2014, and the plant's first Perodua Axia models rolled-off the production line in August 2014. The all-new Perodua plant was built at a cost of RM1.3 billion, and is modelled after Daihatsu Motor Kyushu (DKC) Nakatsu Plant 2 in Japan. Perodua aims to emulate DKC's low defects per unit (DPU) rate and environmentally friendly practices.
In May 2014, Perodua and Daihatsu revealed plans for an all-new RM600 million engine manufacturing plant, to be built in Sendayan. Construction commenced in October 2014, and operations commenced in May 2016. The new engine plant is handled by Daihatsu Perodua Engine Manufacturing (DPEM), and currently produces the 1.3-litre, 1NR-VE and 1.5-litre, 2NR-FE engines for the Perodua Bezza and Malaysian-market Toyota Vios. Additionally, Perodua has a 10% stake in the Akashi Kikai (AKIM) transmission manufacturing plant, also in Sendayan. The all-new AKIM plant commenced operations in March 2014, and currently supplies manual and automatic gearboxes for Perodua's models.
Tan Chong Motor
Tan Chong Motor Holdings (TCMH) currently operates two manufacturing plants in Malaysia, with a combined maximum annual capacity of 100,000 units. Tan Chong Motor Assemblies (TCMA), a subsidiary of TCMH, handles all plant operations. TCMA assembles a large variety of foreign badged models from imported complete knock down (CKD) kits. The original TCMA plant in Segambut was built in 1976, and currently assembles Subaru, Mitsubishi and Renault models, in addition to various commercial vehicles. The second TCMA plant in Serendah commenced operations in 2007, and assembles Nissan models exclusively.
Tan Chong Motor has been an active player in the Malaysian automotive industry since 1957. The company sold fully imported Datsun vehicles in its early years of business, but government initiatives prompted Tan Chong Motor to offer their first locally assembled Datsun models from mid-1968. Sales of Datsun cars grew significantly in the 1960s, and in 1970, Datsun became the best-selling brand of car in the Malaysian market. In mid-2003, Tan Chong Motor adopted the Renault brand in line with the Renault–Nissan Alliance.
Tan Chong Motor constructed their own assembly plant at Segambut in 1976. The new TCMA plant was modelled after the Nissan Zama complex, and was the nation's first to use electro-dipping (ED) technology for its painting process. Nissan Japan regarded the TCMA plant as the third best foreign Nissan assembly plant in the world. The TCMA plant also became the nation's first to feature an engine assembly line in December 1988. TCMA had also pioneered women's rights in the traditionally male dominated automotive industry, with females accounting for 44% of their assembly workforce in 1989.
The bulk of TCMA Segambut production historically consisted of Datsun/Nissan vehicles, but the plant has also carried out contract assembly for Subaru, Volkswagen, Audi, Peugeot and Renault models in the past. A small number of Malaysian-assembled Mercedes-Benz models were also sent to TCMA for painting. The TCMA Segambut plant has mainly catered to domestic consumption, and only a small number of vehicles were exported. Presently, both Subaru XV and Forester models assembled by TCMA Segambut are exported to Thailand and Indonesia, with export volume exceeding domestic consumption.
Construction for an all-new TCMA assembly plant at Serendah commenced in February 2006. The new plant complements the existing Segambut facility, and incorporate more advanced manufacturing standards under the Nissan Production Way (NPW). The Nissan Latio became the first model to roll off the new TCMA Serendah plant in 2007. Tan Chong Motor/Nissan is presently the only domestic-foreign joint venture company to simultaneously operate two automobile assembly plants in Malaysia.
Interactive map
An interactive map of automobile assembly plants in West Malaysia.