MALACCA: The Jazz Hybrid will be locally assembled later this year, making Honda the first foreign car maker to assemble hybrids.
Currently, Honda produces its hybrid vehicles only in Japan and the United States. At present, a fully imported Jazz Hybrid sells for around RM95,000.
The announcement was made by Asian Honda Motor Co president and CEO Hiroshi Kobayashi at a ground-breaking ceremony of its No. 2 Line at Honda’s Pegoh Plant in Alor Gajah here.
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Ueno (left) explaining hybrid technology to guests-of-honour (from left) Minister of International Trade and Industry Datuk Sri Mustapa Mohamed and Malacca chief minister Datuk Seri Mohd Ali Rustam.
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Honda Malaysia has been producing cars locally since 2003. The expansion of its production line to make hybrid models is a natural progression in line with the increasing demand for advanced, clean and fuel-efficient vehicles in Malaysia.
Honda was the first to introduce hybrid technology to Malaysia in 2007.
Honda Malaysia managing director and CEO Yoichiro Ueno said the Malaysian government support for green technology had led it to make further investments in the country.
Honda Malaysia is investing RM350 million for the expansion, which includes building, equipment and facilities.
The new No.2 Line is scheduled to begin operations by the fourth quarter of 2013 and will be able to produce 100,000 units annually. When both the production lines are up and running, Honda Malaysia will be able to produce up to 800 vehicles per day, double its current output.
Hybrid vehicles will be produced at its No. 1 Line while the new No. 2 Line is specially built to increase Honda’s ability to meet the Malaysian market demand for compact vehicles.
Both the current and the new No. 2 Line will have the capability to produce multiple models and to quickly and efficiently shift production as required.
The expanded factory will occupy a total space of 8.48 million square metres when it is completed; almost double the 4.32 million square metres of its current size.
Honda Malaysia will also widening its local supplier network to increase the parts content sourced in Malaysia. Currently, Honda Malaysia sources about 40% of the completely knocked-down (CKD) vehicles components locally and plan to further increase the local content.
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| The Jazz Hybrid. |
The expanded Pegoh Plant in Malacca will assemble (CKD) models such as the City, Civic, Accord, CR-V and the Jazz Hybrid.
The expanded factory is complemented by the recently built RM40 million Pre-Delivery Inspection Centre (PDI) and Vehicle Quality Test Course which was commissioned on July 7.
The new Vehicle Quality Test Course is designed with different dynamic testing zones and road conditions, which will be able to fully test two new vehicles per session. Earlier this year, Honda Malaysia officially opened its new warehouse to provide better support to its dealers.
Honda Malaysia also plans to increase its dealer network nationwide, to up to 90 dealers by the end of 2015.