Major products and services

Major products and services

The automotive industry can be broadly classified into two major sectors: assembly of motor vehicles and components parts manufacturing.

1.Motor vehicle assembly and manufacturing

There are 15 motor vehicle assembly and manufacturing plants in Malaysia, including two national car projects, Proton, and Perodua. Other car plants include Nissan, Toyota, and Kia. Four produce motorcycles only, seven produce passenger and commercial vehicles, and two produce solely commercial vehicles. Proton manufactures passenger cars, while Perodua produces passenger and commercial cars. The total installed capacity (based on a single shift) of the industry is over 300,000 motorcycles and more than 260,000 passenger and commercial vehicles per year. Existing government policies do not permit the establishment of 100 per cent foreign-owned manufacturing plants to supply to the local market. However, opportunities exist for Australian participation in the local manufacture of original equipment components for the Malaysian automotive industry, particularly since the government is encouraging local content.

2.Component parts industry

There are more than 300 automotive component parts manufacturers in Malaysia. Development of this sector is seen as a way of upgrading local engineering or technical skills and developing capabilities to manufacture sophisticated, precision and quality products. The government proposes that the industry be competitive internationally and that components and vehicles be exported. Consequently, most motor vehicle components have been gazetted as promoted products to encourage investment in this sector. Opportunities exist for Australian component manufacturers to provide technological capabilities to increase quality, productivity and competitiveness. Australia also has capabilities in design and testing, which are less developed in Malaysia.

Opportunities include:

Technical collaboration with first-tier vendor suppliers to become suppliers not only for the ASEAN region but also globally.

Strategic alliance with Malaysian companies under the ASEAN Industrial Cooperation Scheme to export cars above two litres to other countries in the ASEAN region.