Honda Malaysia spends millions for expansion

Recently, Honda Malaysia recently added another module to its Pegoh Plant in Melaka. The place, dubbed Pre-Delivery Inspection (PDI) Yard 3, built on a 50-acre land across the road from the Pegoh Plant, has the capacity to hold up to 6000 Honda vehicles and will function as the centralized delivery centre for new vehicles.

Just so that Honda won’t need to wait for traffic to clear before crossing to the other side of the road, the Japanese carmaker pumped in another RM7.1 million to contruct an Overhead Link Bridge that will, umm, bridge PDI Yard 1 to Yard 3. This overhead bridge is also the first in Alor Gajah.

Managing Director and Chief Executive Officer of Honda Malaysia Mr. Yoichiro Ueno shared, “In January last year, we opened the No. 2 Line which puts us on the path towards achieving our mid-term goal of doubling our production capacity to 100,000 units by 2016. In July 2014, we made a strategic decision to construct the new PDI Yard 3 in order to speed up the vehicle delivery process in support of the increase in production and sales volume. The capacity for PDI Yard 3 is increased by 56% compared to the combined capacity of PDI Yards 1 and 2. The existing Yard 1 and Yard 2 will be used for receiving new vehicles, installing accessories as well as inspecting vehicle interior and exterior.”

The PDI Yard 3 will boost Honda Malaysia’s 2015 sales target of 85,000 units. As at the end of June 2015, Honda has achieved 51% of the annual sales target, capturing 13.5% market share. The Company also leads in the Non-National Segment.