Perodua allocates RM1.15 bln capex

KUALA LUMPUR: Perusahaan Otomobil Kedua Sdn Bhd (Perodua) has allocated RM1.15 billion in capital expenditure (capex) this year for business expansion and to improve group operations.

President and chief executive officer Datuk Seri Zainal Abidin Ahmad said Perodua is looking to advance in many business areas such as production, sales, purchasing commitment and vehicle intake, among others.

“The company’s capex investment for 2022 was RM850.5 million. This year, we have allocated RM537.1 million for the development of a new model, as well as RM247.1 million to further modernise our operations.

“This includes upgrading the existing 1S (sales showroom) and 2S (service and spare parts centre) into 3S centres (combination of the two),” he said at the Perodua 2023 outlook media conference here yesterday.

Zainal also said that Perodua is looking to maximise its production to 330,000 vehicles and sales to 314,000 units this year, in line with outstanding orders carried forward from last year as well as continued demand for its vehicles.

“On a year-on-year basis, Perodua expects production to increase to 289,054 units (up 14.2 per cent from 2022) and sales target also to increase to 282,019 units (up 11.3 per cent from 2022).

“Consumers still have confidence in the automotive market.

In fact, more than half of our targeted volume is from bookings we collected last year but have yet to deliver,” he said.

Perodua manufacturing and global manufacturing plants’ annual production capacity is at 320,000 vehicles on a twoshift cycle, said Zainal, adding that the company could still increase volume by improving productivity and by instituting overtime.

He also said that such production growth would be significant for the Malaysian automotive industry and Perodua has earmarked RM10.0 billion to purchase parts from local suppliers to meet its 2023 targets.

“This purchase commitment is expected to further encourage the Malaysian automotive ecosystem to further improve its production capabilities and quality standards.

“For 2023, we target to see an increase in vehicle intake to 2.8 million units from 2.6 million recorded in 2022,” said Zainal.

This growth would be a combination of improved service time as well as increasing Perodua’s service bays throughout the country, he added.