Mercedes-Benz Malaysia hits 100,000-unit CKD milestone at Pekan Production Plant


Established in 2004, the Mercedes-Benz Malaysia Pekan production plant has hit its 100,000-unit production milestone, as announced by the company on November 1, 2023. The milestone comes after about 20 years of operation and investment efforts of over RM500 million to date in the Pekan plant.

Mercedes-Benz Malaysia says that “this remarkable achievement underlines Mercedes-Benz Malaysia’s commitment and dedication to manufacturing excellence and innovation in the luxury automotive industry”.

Mercedes-Benz Cars Malaysia CEO and Mercedes-Benz Cars SEA II Head of Region, Amanda Zhang said, “Mercedes-Benz is the first and only luxury automotive manufacturer to master the local production process in Malaysia. Since its establishment in 2004, the Mercedes-Benz Production Plant in Pekan has played a pivotal role in shaping the Malaysian automotive landscape. This year’s milestone achievement highlights the plant’s remarkable evolvement and journey, reinforcing our commitment to strengthening our foothold in the luxury car segment.”

Another recent significant achievement by the plant was its assembly of the brand’s fully electric car – the Mercedes-Benz EQS 500 4MATIC. The EQS first came in a CBU-guise as the EQS 450+ variant, but that was later replaced by the locally assembled (CKD) EQS 500 4MATIC. The CKD EQS was launched in the Malaysian market in February 2023.

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Mercedes-Benz Malaysia Vice President of Production, Andreas Lettner said, “In alignment with our sustainability vision, we are committed to reducing our carbon footprint by minimizing water and energy consumption while efficiently managing waste. Collaborating with our contract manufacturing partner, HICOM Automotive, we’ve undertaken numerous upgrades at our plant.”

“These enhancements encompass investments in machinery, capacity expansion and the implementation of various sustainability measures. These measures include energy conservation, reduced raw material consumption through innovative packaging, rainwater utilization and the integration of green energy through photovoltaic panels.”

Mercedes-Benz, together with its contract manufacturing partner, HICOM Automotive are working towards a Green Production Target for the production plant to ensure that the best practices are adopted in the reduction of energy, water and waste; while increasing the percentage of renewable energy in its production. This includes the aspiration to increase its renewable energy source from 30% (current) to 85% by the end of the decade.

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