Malaysia’s ambition to become the automotive hub of the Asean region rests on the expansion of its car parts exports. The Malaysia Automotive, Robotics and IoT Institute (MARii) has underscored the necessity for local automobile companies to elevate their export of cars in order to achieve economies of scale and offer auto parts at more competitive prices. This point was emphasized by MARii’s CEO, Azrul Reza Aziz, who highlighted the significance of increasing sales volume to lessen production costs and improve competitiveness in the region.
With nearly 700 million consumers in the Asean region, it is imperative for Malaysia to establish itself as a regional automotive hub. Azrul has urged original equipment manufacturers (OEMs) to export not only cars but also parts and components to enhance the overall competitiveness of the Malaysian automotive industry. This recommendation is in response to reports pointing out that Malaysia’s supply chain costs are higher compared to countries such as China and Thailand.
Despite displaying considerable growth, Malaysia’s total production volume (TPV) of 775,000 vehicles lags far behind that of China and Thailand. To bridge this gap, Azrul has underscored the necessity for Malaysian companies to embrace digital advancements and Industry 4.0 technologies to tackle various challenges. Furthermore, as the country aims to achieve carbon neutrality by 2050, there is a focus on the development of electric vehicle components, autonomous vehicles, and Internet of Things components.
Shamsor Zain, the president of the Malaysian Automotive Association, has reiterated the importance of Malaysia positioning itself as an export hub to substantiate the high investments required for component manufacturing with new technology. He has acknowledged that Malaysia has a relatively mature automotive supply chain but has emphasized the need for the industry to expand export volume and increase the capacity of OEMs.
The drive for Malaysia to fortify its position in the automotive industry comes at a time when global markets are concentrating on sustainable manufacturing and economic recovery. By leveraging digital solutions and embracing technological advancements, Malaysia aims to not only enhance its competitiveness in the region but also contribute to the global automotive landscape.
In conclusion, the efforts to elevate Malaysia’s standing as an automotive hub necessitate a concentrated push from local industry players, OEMs, and government support. With a strategic focus on boosting car parts exports, embracing digital technologies, and addressing cost efficiencies, Malaysia aims to propel its automotive industry towards a more competitive and sustainable future.