Malaysian Auto Parts Industry: An Overview

Transcription

1 2015 Malaysian Auto Parts Industry: An Overview Prepared by: Industry Research Department Cardas Research & Consulting Sdn Bhd A & A-15-12, 15th Floor, Menara A Prima Avenue, Jalan PU 1/39, Dataran Prima, Petaling Jaya, Selangor, Malaysia Website: Enquiry: info@crcg.com.my 1

2 Table of Content 1.0 Executive Summary Introduction Industry background Market Outlook Market Segments Metal Electrical & Electronics Plastics Rubber Automotive Parts Engineering Process Mould & Die Metal Casting Machining Metal Stamping Surface Treatment/Finishing Heat Treatment Industry Conditions Barriers to Market Entry Market Overview Industrial Drivers Third Industrial Master Plan (IMP3) National Automotive Policy 2014 (NAP2014) Tax Incentives Export Prospects Industry Challenges Limited Market Intelligence Minimum Wage Policy Major Industry Players Company Profiles

3 8.1.1 Proreka (M) Sdn Bhd Autokeen Sdn Bhd AutoV Corporation Bhd Automont Gatsby Sdn Bhd Group Components Automotive Sdn Bhd Ingress Corporation Bhd Conclusion Reference list List of Charts Chart 5.1: Five year Malaysian GDP growth trend till Q List of Tables Table 2.1: Manufacturing Industry GDP Contribution.6 Table 2.2: Number of passenger vehicle and commercial vehicle produced 6 Table 6.1: NAP 2014 Strategic direction.14 Table 6.2: Tax Incentive of NAP List of Figures Figure 2.1: Automotive component breakdown by category... 7 Figure 4.1: Automotive component sub-division by category Figure 4.2: Porter Five Force Model for Malaysian Automotive Parts Industry

4 dependency on agriculture industry. This 2.0 Introduction The constant increase of vehicle sales in Malaysia from year-by-year statistic has shown that local automotive industry is growing in a positive direction, as according to National Automotive Policy (NAP). The rising number of vehicles on roads in Malaysia is partly because of better living standards and higher income gained by working force in Malaysia, and young drivers who are eager to drive self-owned vehicle by mselves. The automotive industry remains as one of key contributors to Malaysian GDP, as industry contributed RM30 billion and employs about 550, 000 employees alone in Out of 550, 000 employment created by whole industry, automotive parts industry employs about 41,000 employees to serve industry. 2.1 Industry background During early 1980 s, Malaysian government developed a policy specifically for automotive industry, with objective to reduce economy's can be reflected in Third Industrial Master Plan, which aims and objective is to develop Malaysian economy to become an industrial driven economy by year The industry started off with an assembly production plant of foreign brand cars, but industry was inefficient and fragmented 2. As a result of policy, Proton commenced operation in 1985 and Perodua commenced its operation in Both facilities have become one of Malaysian main car manufacturer, along with Malaysia Truck & Bus (MTB) and Inokom as smaller manufacturer and assembler in Malaysian automotive industry. As a result of growing automotive industry in Malaysia, an open market of automotive parts industry in Malaysia supporting manufacturing facility has opened up business opportunities in local market. The Malaysian auto parts industry offers a wide range of business opportunity in Malaysia, as referring to National Automotive Policy The automotive parts industry covers from producing automotive spare parts to become Original Equipment Manufacturer (OEM) for automotive parts industry. In recent years, Malaysian economy has focused on developing automotive industry, as according to Third Industrial 1 Malaysia International Trade & Industry (MITI), German Chamber of Commerce: Market Watch 2012: The Malaysian Automotive & Supplier Industry. 5

5 Malaysian Auto Parts Industry: An Overview components, comprises of wheel hub, brake panel and alternator housing. Engine parts 3.0 Automotive Parts Engineering Process like crankcase cover and cylinder cover also involve die-cast process. The production of automotive components 3.3 Machining will require specific engineering processes, especially metal parts, which includes metal Precision machining and metal works were mould & die, metal machining and stamping, provided metal casting and metal surface treatment automotive industry. There are about 53 and finishing. companies providing customized precision by smaller firms in local machining projects and about 100 small workshops providing state-of--art metal machining, providing services to repair and produce metal parts in tike of gears and shafts for engine and transmission parts. 3.4 Metal Stamping Metal stamping industry in Malaysia is anor important industry to serve local automotive industry, which process will produces car hoods and bonnets through 3.1 Mould & Die metal stamping. This process usually were Presently, approximately 25 moulds & die firms are currently operating in local industry, serving customized mould & die requirement and die tooling requirement by local automotive industry. undertaken by company that will have contracted supply to car manufacturer, as finished product will be delivered to assembly plant for final assembly. However, 3.2 Metal Casting directly only a number of approximately 300 companies who provided this engineering service is active in metal Approximately 20 companies are actively stamping supporting local automotive industry, manufacturers comprising of sand casting, die-casting and processes such as electroplating and surface investment finishes treatment of stamped parts and casting processes. The companies produce die-cast products and activity, whilst undertake most of secondary components. 10