page_title: Automotive industry in Malaysia
section_title: Perodua
hierarchical_section_title: Automotive industry in Malaysia / Automobile production plants in Malaysia / Perodua
caption_attribution_description: 2014 Perodua Axia Standard G 1.0 5-door hatchback
context_page_description: The automotive industry in Malaysia consists of 27 vehicle producers and over 640 component manufacturers. The Malaysian automotive industry is the third largest in Southeast Asia, and the 23rd largest in the world, with an annual production output of over 500,000 vehicles. The automotive industry contributes 4% or RM 40 billion to Malaysia's GDP, and employs a workforce of over 700,000 throughout a nationwide ecosystem.
  The automotive industry in Malaysia traces its origins back to the British colonial era. Ford Malaya became the first automobile assembly plant in Southeast Asia upon its establishment in Singapore in 1926. The automotive industry in post-independence Malaysia was established in 1967 to spur national industrialisation. The government offered initiatives to encourage the local assembly of vehicles and manufacturing of automobile components. In 1983, the government became directly involved in the automotive industry through the establishment of national car company Proton, followed by Perodua in 1993.
context_section_description: 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.
caption: The Perodua Axia became the debut model for PGMSB.
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