The growing volumes of Perodua which reached a new record in 2024 have also benefitted its suppliers. With more vehicles being built, ever larger orders for automotive components have been made and the suppliers are in a stronger position in their respective business operations.
“From our estimate, Perodua has purchased over tens of billions ringgit worth of automotive components from our members over the past couple of years, which is the highest purchase ever made in our history,” said Musa Zahidin Tan Sri Ahmad Zaidee, President of the Perodua Suppliers Association (P2SA).
Re-investing and expanding operations
“These purchases played an important part in enabling P2SA members to re-invest and expand our operations, improving economies of scale and increase our competitive advantage – especially when cost is escalating due to external factors,” he explained.
He said that P2SA members have also taken the initiative to re-invest in their operations that include greater automation and incorporation of IoT (Internet of Things) within their operations. “An example of this is Ingress AOI Technologies Sdn Bhd’s Automated Storage and Retrieval System – a computer-controlled system that is able to identify, sort and move items productively around in high storage space with minimal human and equipment support. This system has improved Ingress AOI Technologies’ space efficiency by 71%,” Encik Musa explained.
He added that other members are also looking to further improve their operations through various methods, including adopting Industry 4.0 technologies.
On Perodua’s production achievement of 368,100 units in 2024, Encik Musa said P2SA was able to support this achievement because of the automaker’s open communications approach with P2SA. “The support offered to every P2SA member have ensured that we were able to cope with the highest ever volume such as ensuring prompt payment, clear direction and open discussions on any changes allowed us to perform above what we believe we could,”
“We understand that we need to further improve for us to compete with our counterparts in the region and some of us are making inroads in ASEAN – while some even to Japanese auto OEMs,” he said.
Delight but challenge for dealers
For the Perodua Dealers’ Association (PDA), the record volumes of 2024 were a delight – but also a challenge. “The amount of coordination and logistics on Perodua’s side to realise this number was indeed impressive,” Cik Rabitah Dato’ Shamshudin, PDA President said.
“Aside from efficiency and professionalism, Perodua has now and again, offered tangible support to dealers on how to improve our operations, such as how to implement mono-operation, offer support and encouragement to upgrade to a 3S operations, which is paying off for many of our members,” she said.
“Perodua is here for the long-run and has treated us fairly over the past 30 years that we have been partners. As we move forward, our members will continue to play our part in delivering the Perodua experience,” she said, adding that Perodua has also working on incorporating and welcoming the new generation of dealers as they prepare to take over from their parents.
“We wish to thank Perodua, and especially Dato’ Sri Zainal Abidin Ahmad’s (Perodua President & CEO) leadership in taking us to greater hights,” said Cik Rabitah. She added that PDA is committed to Perodua’s continued success as the country’s most popular brand and will focus on improving customer satisfaction by better understanding their needs and building better experiences with them.
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