Perodua vehicles to hit Indonesian roads next year

Perodua vehicles to hit Indonesian roads next year

KUALA LUMPUR (AFP): Malaysia's second national carmaker Perodua will start exports to Indonesia next year with an initial shipment of 500 cars, a report said on Thursday.

Abdul Rahman Omar, managing director of Perusahaan Otomobil Kedua Sdn Bhd (Perodua), was quoted by the Star newspaper as saying the cars would be shipped next April and would be sold under the Daihatsu brand.

Japan's Daihatsu Motor Co Ltd has a 20 percent stake in Perodua and its Malaysian subsidiary holds another five percent.

"The Indonesian market has big potential," Abdul Rahman was quoted as saying at the British International Motor Show in the English city of Birmingham following the launch of the company's Kenari multi-purpose vehicle in Britain.

Abdul Rahman said the venture into the Indonesian market was important in the continuing talks with Daihatsu about investing in a second production line, with an annual capacity of about 100,000 to 150,000 units, at the Rawang plant in the central state of Selangor.

He said the investment, which is estimated at some 500 million ringgit (US$131.5 million), would be in line with Perodua's strategy of making cars for Daihatsu under the "dual badging" concept for export.

"We have the means as Perodua is the only producer of small cars in the region while Daihatsu has the size and sales network. We can work together for our mutual benefit," he said.

Abdul Rahman also said work to increase the Rawang plant's current capacity from 120,000 to 150,000 is expected to be completed by next April. The plant is currently running at full capacity.

The main national carmaker is Proton, which has 65 percent of the Malaysian market.