Tag Archives: factory

NEWS

5 car factories in Malaysia that you should know

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For most automotive brands in Malaysia, local assembly plays a crucial role in ensuring their continued competitiveness in the local automotive market.

It goes without saying that national carmakers such as Proton and Perodua run their own assembly plants in the country; however, for foreign brands, completely knocked-down (CKD) operations allow them to offer products at more competitive prices.

Through support and various incentives offered by the government, Malaysia has become host to several vehicle production plants from leading brands. Here are five automotive production plants in the country that you should know about:

Proton Shah Alam & Tg. Malim

The Proton vehicle assembly plant in Shah Alam began operating in 1985, the same year the original Proton Saga was launched. This plant also produced many other important models such as the Wira, Waja, Exora, and Satria.

Proton is reportedly planning to relocate its entire manufacturing operations in Shah Alam to Proton City, Tanjong Malim by 2027. The RM1.8 billion plant, opened in 2003, covers an area of 517 hectares. In addition to producing the latest models such as X50 and X70, the plant also assembles the 1.5 TGDI engine.

Perodua Sg. Choh, Rawang

Perodua’s headquarters sits on a 522-acre site in Sungai Choh, Rawang. In addition to its corporate building, an R&D facility, a test track, and various other facilities, it also houses two vehicle assembly plants: Perodua Manufacturing Sdn Bhd (PMSB) and Perodua Global Manufacturing Sdn Bhd (PGMSB), which was opened in 2016.

According to Perodua, both plants have a vehicle production capacity of up to 320,000 vehicles a year. Perodua also has engine and transmission production plants, both located in Sendayan TechValley.

Toyota Shah Alam & Bukit Raja

The first locally assembled Toyota vehicle was the Corolla KE10, assembled at the Champion Motor plant in Shah Alam. In 1975, the plant was renamed Assembly Services Sdn Bhd (ASSB).

With increasing demand and the need for a new, more modern plant, UMW Toyota in 2019 opened its second assembly plant in Bukit Raja, Klang, where the latest models such as Vios, Yaris, and Corolla Cross are manufactured.

Honda Pegoh, Melaka

Honda began its CKD operations in the country in 2003 with the assembly of the second-generation Honda CR-V at its Pegoh, Melaka plant. The plant, covering an area of 46,543 square feet, can produce up to 50,000 cars per year.

In 2014, a second assembly line was launched, allowing Honda Malaysia to double their annual production to 100,000 units of vehicles annually and 400 units daily.

Volvo Shah Alam

The Volvo Car Manufacturing Malaysia plant, located in Shah Alam, is the oldest automotive assembly plant in Malaysia. It began operations in March 1967 through the assembly of the Volvo 144.

Interestingly, it is also the first Volvo plant opened outside of Volvo’s home country, Sweden. Today, the plant produces a range of Volvo PHEV and BEV cars such as XC90 Recharge, XC60 Recharge, XC40 Recharge, and C40 Recharge.

EV, NEWS

Tesla never committed to open EV factory in Malaysia – Minister

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Tesla has never committed to opening a factory in Malaysia, said Minister of Investment, Trade, and Industry Tengku Datuk Seri Zafrul Tengku Abdul Aziz.

In a post on X, formerly known as Twitter, Tengku Zafrul explained that the Ministry of Investment, Trade and Industry (MITI) had engaged in discussions with Tesla founder Elon Musk in efforts to attract investment, but these discussions did not involve setting up a factory.

“Firstly, the foreign news report is not an official statement from Tesla but rather quotes anonymous or unnamed sources. Reporters need to verify the authenticity of this news with Tesla, as the source of this news is not from Tesla.

“Secondly, MITI has never announced that Tesla will open a factory in Malaysia. We have had discussions with Elon Musk in efforts to attract investment, but Tesla has never committed to opening a factory here,” Tengku Zafrul said.

He made these comments in response to a report from Thai online news portal, The Nation, which cited unnamed sources within the government regarding Tesla’s cancellation of plans to develop factories in Malaysia, Thailand, and Indonesia.

The report also stated that Tesla’s current discussions are only focused on efforts related to charging stations and has suspended plans to develop factories not just in Thailand but globally.

“Tesla is not proceeding with plans in Malaysia, Indonesia, or other locations except in China, the United States, and Germany,” the news portal reported.

On July 20 last year, a leading United States multinational electric automotive manufacturer announced its strategic expansion into the Malaysian market through Tesla Malaysia Sdn Bhd.

According to a joint statement from Tesla and the Malaysian Investment Development Authority (MIDA), this move is a direct response to the Battery Electric Vehicle (BEV) Global Leader initiative introduced by MITI.

In addition to introducing a range of advanced electric vehicles (EVs) to Malaysian consumers, Tesla is also committed to investing in a comprehensive network of fast and standard charging stations across strategic locations in Malaysia, as well as establishing its state-of-the-art headquarters and service centre in Cyberjaya, Selangor.

NEWS

Perodua might need a third factory for its EV production

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PERODUA is currently evaluating the construction of a new plant by 2025 to support the production of the new generation Myvi, as reported by Wapcar.

As you might have known, the new generation Myvi will also feature a fully electric (EV) variant.

At present, Perodua operates two plants located in Rawang. The first plant, Perodua Manufacturing Sdn Bhd (PMSB), currently produces Alza, Aruz, and Myvi, along with the Toyota Veloz under contract.

The second plant, Perodua Global Manufacturing Sdn Bhd (PGMSB), currently manufactures Axia, Bezza, and Ativa. The third plant is referred to as the ‘BEV plant’ for electric battery vehicles.

At the same time, Perodua is exploring other options. An alternate plan is to collaborate with other manufacturers on a contract basis.

Speaking during the public unveiling of the Perodua EMO-1 concept last week, its President and CEO, Dato’ Sri Zainal Abidin Ahmad, said, “I cannot disrupt the current plants. They are operating at over 300,000 units (per year).”

“As I mentioned earlier, our target is to produce around 340,000 to 350,000 units. This already exceeds our normal capacity.

“So, I cannot disrupt the current plants. This EV (battery) is something we have to consider to build a new plant, or seek a partner, who has the capability in Malaysia to enable us to carry out the installations,” he added.

The new generation Perodua BEV is being developed independently, without technical assistance from Daihatsu.

Starting from scratch, this project is being carried out in collaboration with three local universities and electric vehicle conversion experts from Australia, namely EV North.

Led by chief engineer, Puan Jehan Adnan, this project utilizes a prototype with support from 60 local vendors, ensuring that Malaysia has a supply chain for domestic EV production.

Based on the Myvi, this prototype is equipped with a 55.7kWh battery pack giving it a driving range of up to 350km.

It features a single electric motor at the front wheel with an output of 161hp and 220Nm of torque.

It is understood that the first Perodua EV model is planned to be launched by the end of 2025 with a price not exceeding RM100,000.

NEWS

Porsche Leipzig plant awarded Factory of the Year

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The Porsche production plant in Leipzig has been awarded the Factory of the Year by the consultancy firm Kearney, in collaboration with Süddeutscher Verlag Veranstaltungen and the magazine Produktion.

The sports car brand manufacturing facility has surpassed nearly 100 other factories worldwide. Last autumn, the jury panels visited this Leipzig plant.

Porsche utilizes the Smart Factory approach for a smart and connected plant. All processes are smart, efficient, and eco-friendly. For instance, the car ‘marriage’ process in the plant is intricate yet organized. The ‘marriage’ process involves the assembly of the chassis with the body of the car.

In Leipzig, this process can encompass three different powertrains – combustion engine, hybrid, or electric – in the same assembly line. Cameras are used for monitoring alongside automated measurement systems for checking screw threads.

In the painting section, whereas it was previously inspected by several individuals in a team, it now employs the Automatic Error Detection (AFE) process.

In just 70 seconds, two robots scan the entire outer surface of the car using light strips. Over 100,000 photos enable these robots to detect even minor errors.

Another aspect contributing to the Leipzig Porsche plant’s victory is sustainability and commitment to the local community. The Zero Impact Factory vision balances the economy, biodiversity, and air quality.

Since 2017, this plant has solely used electricity from renewable sources. It has been carbon-neutral since 2021, with part of the electric power being generated by the plant itself.

Porsche’s social commitment also contributes to education, culture, social issues, sports, and the environment. One strategy involves protecting various animal species in the plant’s vicinity for over 20 years. Species in the surrounding area include Heck cattle, Exmoor ponies, bees, and a variety of plants.

In 2002, the Leipzig plant commenced operations as Porsche’s second production center after Stuttgart. Currently, the Leipzig plant plays a pivotal role in the economy of central Germany, with over 4,600 employees building Macan and Panamera models here.

The Porsche Leipzig plant also houses the Porsche Experience Centre with an FIA-certified track and off-road courses.