business

Export of local automotive components to hit RM12b

RAWANG: Exports of local automotive components and spare parts are expected to hit over RM12 billion this year, according to Malaysian Automotive, Robotic and IoT Malaysia (MARii) chief executive officer Datuk Madani Sahari.

For the 10 months of October 2018, the value of exports for automotive components and parts had reached almost RM11 billion.

"In 2011, the export value was around RM5.2 billion and had doubled in five years. We are now collecting achievement data in 2018 and will be announcing soon,” he said after the Karakuri Award Presentation Ceremony in Rawang yesterday.

"To date, there are about 175 local suppliers who have been exporting automotive components and parts globally.”

The MARii Karakuri Programme is a method to increase productivity by 30 per cent and as of now, a total of 30 participants from 15 companies have successfully completed the programme.

Otomobil Kedua Sdn Bhd (PERODUA) President and CEO Datuk Zainal Abidin Ahmad who was also at the event said the level of competitiveness of local suppliers are comparable with regional automotive component suppliers.

"We see suppliers in Indonesia and Thailand can supply their products to original equipment manufacturer (OEM) productions worldwide,” he said.

"We hope local suppliers can also follow the footsteps, not just by exporting completely built up (CBU) products but also their components.”

Commenting on the direction of Perodua this year, Zainal Abidin said the automaker could no longer rely on traditional sales concepts.

"We now need to focus on new sales strategy or what I call technical sales. We need to believe in our products and investments. In addition, we also need to continue to focus on customer service aspects at every level," he said.

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