Perodua pledges RM1.6B investment for 2025 expansions, doubles down on R&D and plant improvements

Photo: LSF Technology

Perodua has announced that they will be increasing their capital expenditures (CAPEX) to RM1.6 billion for 2025. This will be their biggest CAPEX investment yet, thanks to planned improvements to its existing production plants, stamping capacity, and development of new models.

Compared to last year, this new amount essentially doubles the RM797.5 million CAPEX Perodua spent in 2024. Perodua President and CEO Dato’ Sri Zainal Abidin Ahmad says that the investments will boost manufacturing capacity, strengthen service quality and productivity, R&D product planning, and the development of future cars.

In 2024, the national carmaker’s exceeded its manufacturing capabilities with 368,100 vehicles produced, 48,100 more than the 320,000-capacity for both plants in Rawang and Seremban. “The 368,100-unit record was achieved by minimising downtime, keeping to the maintenance schedule, dynamic planning and coordination between our vendors and dealers and being agile in overcoming challenges,” says Dato’ Sri Zainal.

Due to the planned upgrading works, Dato’ Sri Zainal foresees that perodua could see a drop in production numbers to 350,000 units this year. “This reduction would see registration slowing by 3.7% to 345,000 units from 358,102 units last year.” he says.

However, he states that demand for the brand’s vehicle is still strong, with a current outstanding booking amount of 68,000 units, 28,000 having letters of undertaking issued without stock. Dato’ Sri Zainal further reiterates that Perodua will prioritise deliveries of safe and quality vehicles.

READ: Perodua targets 345,000 sales in 2025 – 3.7% drop from 2024 due to planned production upgrades

On the aftersales front, Perodua is also targeting an increase in its intake volume of 3.7 million vehicles this year, compared to the 3.4 million recorded in 2024.

The national carmaker will continue its contribution to the nation’s automotive ecosystem, Dato’ Sri Zainal said. An estimated RM10.8 billion will be allocated for local component purchases from Malaysian vendors, and Perodua will be working with the government to improve the vendor’s and dealer’s capabilities.

“This include further exploring Industry 4.0’s potential in maximising efficiencies within their operations, conduct training and provide other assistance for sustainable growth,” Dato’ Sri Zainal said.

Recently, Perodua has signed a flurry of partnerships and agreements in preparation of its first electric vehicle due this year,including a Memorandum of Understanding (MoU) with Universiti Teknologi Malaysia (UTM), as well as a partnership with TM to further EV production and develop custom infotainment systems.

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