Honda Malaysia has held a groundbreaking ceremony to mark the start of construction of its second car production line at the existing auto plant in Malacca, Malaysia.
On the second line, which is scheduled to begin operation before the end of 2013, HMSB is planning to produce mostly small-sized vehicles such as the Jazz (Fit in Japan and North America), and hybrid vehicles.
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Planned annual production capacity is 50,000 units, doubling HMSB’s overall production capacity to 100,000 at a cost of 350m Malaysian ringgit (about JPY8.68bn), and adding 700 jobs.
Malaysia is the Honda’s largest hybrid vehicle market in southeast Asia today, with a further increase in demand for hybrid vehicles expected. At the end of this year, HMSB will begin local production of the Jazz hybrid, which is currently being imported from Japan, on the existing line, with production to be transferred to the second line when it becomes operational in 2013.
HMSB, which became the largest hybrid vehicle seller in Malaysia in 2011 with sales of approximately 4,600 units, plans to sell approximately 10,000 units in 2012.
HMSB has also expanded its test course and pre-delivery inspection (PDI) site. In addition, a new automated welding facility was introduced to the existing line timed to the local production of the redesigned Civic which went on sale on 12 July.
