Perusahaan Otomobil Kedua Sdn Bhd (Perodua), the country's biggest car company by sales volume, and its technical partner Daihatsu Motor Co, plan to spend a few hundred million ringgit on a facility to produce electronic automatic transmission (EAT) system.
The factory will be built at Perodua's existing manufacturing facilities in Rawang, and will be the first of its kind in the country, senior Perodua executives said.
"Our target is to start this EAT production in a couple of years after due planning and preparation.
"We expect our initial invest-ment for this project to be about a few hundred million ringgit," Perodua managing director Datuk Aminar Rashid Salleh said at the Kuala Lumpur International Motor Show 2010 in Kuala Lumpur yesterday.
Currently, Perodua vehicles' EAT system is imported from Japan. The system is currently incorporated in two Perodua models - the Alza and Myvi.
Once this project takes off, import of this component is expected to be reduced significantly. Local content of the vehicles is expected to be higher as well.
"EAT itself is a high-tech product and we can say the same for its production. It will require higher skills and much more sensitive controls," Aminar Rashid said.
The project, he added, will be in line with the National Automotive Policy, in which it will complement various high-technology projects under the Economic Transformation Programme.
"We think that this project will contribute a lot to the automotive industry in Malaysia.
"We also believe that this project will be able to bring benefits and confidence to the domestic economy," Aminar Rashid said.
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