“Honda Malaysia Sdn Bhd is banking on its new RM382 million production facility in Pegoh, Malacca, to meet its target of becoming Malaysia’s top non-national carmaker by 2016.”
Honda Malaysia targets pole position
Toyota is currently the country’s number one seller in the non-national car category and third overall in the local market, after Perodua and Proton.
Honda Malaysia aims to sell 76,000 units, comprising both hybrid and non-hybrid models, this year, compared with last year’s 60,000 units.
Malaysia’s total industry volume is expected to hit an all-time high of 652,120 units last year, before touching 680,000 units this year.
Honda Malaysia managing director and chief executive officer Yoichiro Ueno said by 2016, the company will launch more models and produce 100,000 units a year.
“We believe we may be able to become Malaysia’s largest producer in the non-national segment by 2016. However, it also depends on our competitors’ performance. We are working very hard towards it.”
Ueno was speaking at the launch of the company’s second production facility near its existing plant, here, yesterday.
The new plant, Malaysia’s first full-fledged hybrid car facility producing models such as Honda Jazz, was launched by International Trade and Industry Minister Datuk Seri Mustapa Mohamed.
Asian Honda Motor Co Ltd president and chief executive officer Hiroshi Kobayashi said with the new plant, Honda will be able to double its exports to the Asia Oceania region to 1.2 million units a year.
Dubbed Line 2, the plant has a built-up area of 49,190 sq m and is part of the RM1 billion investment Honda has pledged to plough back between 2012 and 2015.
Line 2 will be able to double the current production to 100,000 units annually, or 200 to 400 units a day.
Kobayashi said with the new plant, Honda is looking forward to assembling more vehicles for the growing Malaysian market, particularly in the small model and hybrid segments, which have seen steady growth over the past few years.
Honda Malaysia, which employs 241,000 workers, assembles the City, Civic, CR-V, Accord and both the Jazz petrol and hybrid variants at the Pegoh plant.
Ueno said Honda’s mid-term plan is to invest an additional RM1 billion over three years, starting from 2012, to boost its manufacturing and sales network.
He said Honda Malaysia, which exports 90 per cent of its output, has enhanced its operations in Malaysia, with a new parts warehouse, test track facility and pre-delivery inspection centre.
It also aims to increase its dealerships from 70 to 90 this year.
Ueno said to make its prices more affordable for local buyers, Honda Malaysia will enhance its local content from below 40 per cent to more than 70 per cent in the future.
Honda Motor Co is among the world’s top car manufacturers, selling more than four million units a year.
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