Honda Malaysia Sdn. Bhd. (HMSB), a Honda automobile production and sales joint venture in Malaysia, has begun construction of a second automobile 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 Jazz (known as Fit in Japan), and hybrid vehicles.
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 hybrid vehicles using the existing production line. HMSB will begin 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.
The annual production capacity of the second line is planned to be 50,000 units, doubling HMSB’s overall production capacity from the current 50,000 units with the first line to 100,000 units. The total investment on the second line is expected to be 350 million Malaysian ringgit (US$111 million).