The revamp of the National Automotive Policy in 2020 is expected to further strengthen the Region’s automotive supply chain for high-value component manufacturing. The introduction of an attractive tax regime will enable Malaysia to gain a competitive advantage among the ASEAN Economic Community and ASEAN Industrial Cooperation initiatives.
The automotive sector in ECER is well-established and located within the Pekan Automotive Park (PAP) in Pahang and the HICOM Automotive Manufacturing Malaysia (HAMM) is one of the leading contract manufacturers for Mercedes-Benz, Volkswagen and Mitsubishi. PAP is also home to several OEM parts suppliers, making it a well-established automotive assembly ecosystem.
The Region presents significant advantages and attractive opportunities for vehicle manufacturers as well as OEM parts manufacturers and service providers to set up their presence in ECER in the following areas:
- Integrated car manufacturing and assembly.
- High-value component manufacturing i.e. Energy Efficient Vehicles (EEV), body & interior, powertrain, electrical & electronics.
- Procurement, distribution and warehousing centre for vehicle spare parts and components.
Featured Players in the Sector
HICOM AUTOMOTIVE MANUFACTURER (MALAYSIA)
A part of DRB-HICOM Berhad, HICOM Automotive has been established in Pekan since 1983. It is a joint-venture and contract manufacturer for foreign automotive companies such as Volkswagen, Mercedes-Benz, Mitsubishi Fuso and Isuzu for the assembly of passenger and light commercial vehicles.
ZF CHASSIS SYSTEMS SDN. BHD. (ZF)
ZF is a global leader in driveline and chassis technology as well as active and passive safety technology. The company has a global workforce of around 137,000 spread across approximately 230 locations in some 40 countries. In 2016, ZF achieved sales of €35.2 billion.
ZF annually invests about six percent of its sales in research and development, ensuring continued success through the design and engineering of innovative technologies. ZF is one of the largest automotive suppliers worldwide. ZF Chassis Systems Sdn. Bhd. produces chassis systems for German vehicle producers in Pekan.
YANFENG MALAYSIA AUTOMOTIVE INTERIOR SYSTEM SDN. BHD. (previously known as Johnson Controls)
Headquartered in Shanghai, Yanfeng Automotive Interiors is the world’s leading supplier of instrument panels and cockpit systems, door panels, floor consoles and overhead consoles.
DRB-HICOM DEFENSE TECHNOLOGY SDN. BHD. (DEFTECH)
DEFTECH is a premier defence company that sets the standard in designing, developing, manufacturing and supplying armoured and logistics vehicles for both military and homeland security use. DEFTECH is also the preferred supplier for specialised vehicles and commercial buses.
The company is also synonymous with excellent land systems maintenance repair and overhaul capabilities, and recently extended its range into the domains of aerospace, composite structures, unmanned systems and system integration. It also produces Military Vehicle RG34, DefTech AV8, AV4, ACV-300 and HICOM Handalan Trucks.
AFI BRAKE MANUFACTURING SDN. BHD. (AFI Brake)
AFI Brake is located in Kuala Terengganu. Established in 1997, it is an integrated manufacturer of automotive disc brake pads for aftermarket segment.