Perodua To Invest In Future Growth: RM1.6 Billion CAPEX For 2025

Perodua To Invest In Future Growth: RM1.6 Billion CAPEX For 2025

Perodua is significantly boosting its capital expenditure for 2025, allocating a substantial RM1.6 billion mainly towards plant improvements, increased stamping capacity, new model development, and tooling. This marks a dramatic increase of more than double the RM797.5 million invested in 2024, signalling a strategic reinvestment in the company’s capabilities.

“These investments will consolidate manufacturing capacity, including at our vendors, level up service quality and productivity, and solidify R&D product planning and new model development capabilities,” explained  Dato’ Sri Zainal Abidin Ahmad, President and Chief Executive Officer of Perodua. Perodua_Test Track_New Model

The company’s aggressive investment strategy comes subsequent to a projection of a slight dip in production and sales for 2025. Perodua anticipates production to decrease by 4.9% to 350,000 vehicles from the record-breaking 368,100 vehicles produced in 2024. In 2024, the company had surpassed the annual 320,000 unit capacity of both plants through minimising downtime, dynamic planning, maintaining the maintenance schedule, and coordinating closely with vendors and dealers.

For 2025, Perodua projects that registrations will slow by 3.7% to 345,000 vehicles from the 358,102 vehicles registered last year. This slight slowdown gives the company the opportunity to accelerate the development of its workforce’s capabilities, ultimately leading to greater self-reliance in production and future product development. The emphasis this year on internal strengthening will help position Perodua with long-term sustainable growth.Perodua_Production_Assembly Line

Despite the projected dip in sales, demand for Perodua vehicles remains robust, with current outstanding bookings at 68,000 vehicles, of which 28,000 have letters of undertaking issued without readily available stock. Perodua has committed to prioritising deliveries while maintaining its quality and safety standards. 

Beyond manufacturing and sales, Perodua is also focusing on its aftersales business, expecting a 7.6% increase in intake volume to 3.7 million vehicles, up from 3.4 million in 2024.

Perodua remains committed to supporting the Malaysian automotive ecosystem. The company estimates a local component purchase of RM10.8 billion from Malaysian vendors. Dato’ Sri Zainal also emphasised the importance of working closely with the government to enhance the capabilities of both vendors and dealers, enabling them to remain competitive in the rapidly evolving industry. This includes exploring the potential of applying Industry 4.0 technologies for maximising operational efficiencies, providing training, and offering other forms of assistance for sustainable growth. Perodua_Showroom_Reception

“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 would be able to further strengthen our current position in this country and this region,” Dato’ Sri Zainal concluded. The company’s heavy investment indicates a long-term strategic vision to focus on building its base for innovation, efficiency, and self-reliance.

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