Perodua is spending RM700 million on the new SUV model

Perodua’s new five-seat compact SUV scheduled for launch on March 3, will contain 95% domestic spare parts.

RAWANG: Perusahaan Otomobil Kedua Sdn Bhd (Perodua) is allocating about RM700 million to research and development of its new SUV, codenamed D55L, which will be released in March.

Datuk President and CEO Zain Al Abidin Ahmed said another RM250 million will be allocated to expand the sales network. Both are part of the company’s capital expenditures of RM1.2 billion (Capex) for this year.

“Of course, this is based on our initial planning, not merging (effects) Covid-19, more MCO orders and so on,” he said during a question-and-answer session after an exclusive media preview. And test drive the new model organized by the company.

The session was held at the Berodua headquarters here on Monday.

The D55L is Perodua’s internal code name for its five-seat compact SUV which is scheduled to launch on March 3.

Zine El Abidine revealed that the D55L will contain approximately 95% of domestic parts, the highest for Perodua models, and most of them contain more than 90% of local content.

He also said that Berodua is still the largest buyer of auto components in Malaysia.

The compact car manufacturer is expected to purchase RM6.5 billion worth of locally sourced components in 2021, up from RM6.0 billion in the previous year.

Meanwhile, Perodua’s 2021 production target is a 23% increase over the 220,968 units manufactured in 2020.

For the new D55L, he said the projected capacity is around 36,000 to 40,000 units per year and could be increased with overtime incentives.

Zain Abdeen said the Perodua D55L is the first model under the Perodua Smart Build (PSB) scheme, spearheading Perodua’s breakthroughs in style, safety, technology, equipment levels and value.

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