Perodua to double investments to RM1.6 bil in 2025, focus on greater self-reliance, R&D on new models

Perodua may have recorded its best-ever year in terms of sales in 2024, selling a whopping 358,102 units last year, and though it is projecting slightly lower numbers this year, the undisputed market leader will not be idle, using the period to tool up for the future.

That’s because the national automaker has announced that it is increasing its capital expenditure by more than twice to RM1.6 billion this year, with the biggest chunk of the investment to be set aside for plant improvements and stamping capacity (RM530 million) and new model development/tooling (RM528 million).

“The RM1.6 billion more than doubles the RM797.5 million CAPEX in 2024 as we reinvest in our capabilities. These investments will consolidate manufacturing capacity, including at our vendors, level up service quality and productivity and solidify research and development product planning and new model development capabilities,” said Perodua president and CEO Datuk Seri Zainal Abidin Ahmad.

He said that the company went beyond its manufacturing capabilities with 368,100 vehicles made in 2024, which is more than the 320,000-capacity for both its plants. “The 368,100-unit record was achieved by minimising downtime, keeping to the maintenance schedule, dynamic planning and coordination between our vendors and dealers and being agile in overcoming challenges,” he said.

“For 2025, we foresee our production numbers declining 4.9% to 350,000 units from 368,100 units made in 2024. This reduction will see registrations slowing by 3.7% to 345,000 units from 358,102 units last year,” he said.

“Despite our planned slowdown in production and sales, demand for our vehicles remains healthy with current outstanding booking at 68,000 units, of which 28,000 bookings have letters of undertaking issued without stock,” he added.

However, Zainal said the automaker is aiming to gear up for the future by achieving greater self-reliance in terms of production capabilities, especially in developing future products, with its engineers, designers and technicians set to be given greater exposure to global manufacturing technologies.

The local component aspect of the country’s automotive ecosystem will also continue to be developed, with an estimated purchase of RM10.8 billion expected from Malaysian vendors. In addition to auto component purchase, we are working closely with the government to further enhance our vendors’ and dealers’ capabilities so that they can remain competitive in this industry,” he said.

“The year 2025 will be an exciting time for us as we prepare ourselves and our partners for the changes that are coming. We believe when these changes are completed, we will be able to further strengthen our current position in this country and this region,” he said.

The post Perodua to double investments to RM1.6 bil in 2025, focus on greater self-reliance, R&D on new models appeared first on Paul Tan's Automotive News.