PERODUA faces the challenge of rising metal and plastic prices right now.
In a recent event at the MIDA headquarters PERODUA senior management confirmed that they are keeping their new car selling prices as is for 2022 despite the recent sharp rise in raw material costs.
This statement comes as Malaysia and also the ASEAN region sees a rise in the prices of vehicle spare parts as well as consumables. Earlier this year we reported on the slow rise in new tire prices and also engine oil.
The cost of servicing a vehicle in Malaysia has moved up 10 to 15 percent and new tires are now almost 15 percent more.
Meanwhile, new car prices will soon also need to move upwards as car manufacturers have less margin to work with.
This is why PERODUA senior management are working very closely with all their vendors to ensure unnecessary production expenses are removed or reduced and to keep their future customers happy with reasonable selling prices.
However, as the Malaysian currency does not show any signs of moving upwards against the US Dollar, the rising raw material costs will ‘force’ higher selling prices next year, 2023.
Meanwhile, the first phase of MIDA-PERODUA strategic partnership has brought forth three potential PERODUA friendly partners, including LSF Technology Sdn.Bhd., J.K. Wire Harness Sdn. Bhd. and Autoliv Hirotako Safety Sdn. Bhd.
These companies have also been granted Domestic Investment Strategic Fund (DISF) as part of the Government’s initiative to assist the local companies to embark into the global supply chain.
Under this similar programme, MIDA and PERODUA have identified five new vendors that have shown much potential and growth opportunities.
These include Armstrong Auto Parts Sdn. Bhd., Ingress Aoi Technologies Sdn. Bhd., Namicoh Suria Sdn. Bhd., P.D. Kawamura Kako Manufacturing Sdn. Bhd. and Kumpulan Jebco (M) Sdn. Bhd.
MIDA, being the pivotal principal promotional agency of Malaysia, will be extending their support services to help more companies obtain growth in terms of productivity, talent and bridging financial and technology gaps.
The agency is confident that through such facilities and empowerment measures, these automotive players will be able to increase their business offerings and expertise to innovate its products and services and climb the supply chain ecosystems.
