Overview

Honda arrived in Malaysia in 2003 and rolled out its’ first car, a CR-V, from its’ first plant situated in Pegoh Industrial Park, Melaka. A second production line was opened in 2014, doubling its’ production capabilities from 50,000 units to 100,000 units of vehicles annually, and from 200 units to 400 vehicle units daily.

Honda Malaysia Sdn. Bhd. is a joint venture where Honda Motor Co., Ltd. owns 51%, DRB-HICOM Berhad owns 34%, and Oriental Holdings Berhad owns 15%​. Each of the stakeholders hold unique responsibilities regarding Honda’s operations, with final decision-making likely resting with Honda’s global office in Japan.

Honda Malaysia operates with a focus on delivering high-quality vehicles that cater to the diverse needs of Malaysian consumers. The company’s business model revolves around the following key areas:

• Manufacturing: Honda Malaysia produces a variety of models locally, ensuring that they meet the specific preferences and requirements of Malaysian customers. This local production capability allows Honda to offer competitive pricing and timely delivery.
• Sales and Distribution: The company has an extensive network of dealers and service centers across Malaysia. This network ensures widespread availability of Honda vehicles and after-sales services, enhancing customer satisfaction and loyalty.
• Innovation and Sustainability: Honda Malaysia emphasizes innovation in its product offerings, incorporating advanced technologies and environmentally friendly features. The company is committed to sustainability, with initiatives aimed at reducing carbon emissions and promoting eco-friendly practices.

Manufacturing Facilities in Malaysia

Honda Malaysia operates a state-of-the-art manufacturing plant located in Pegoh, Melaka. This facility plays a crucial role in the company’s local production capabilities and has achieved several milestones since its establishment:

• Pegoh Plant: This manufacturing plant, located in Melaka, is responsible for producing a range of Honda models, including the popular Honda City, Civic, and Jazz. The plant is equipped with advanced technology and adheres to stringent quality standards to ensure the production of high-quality vehicles.
• Expansion and Innovation: Over the years, Honda Malaysia has continuously invested in expanding and upgrading its manufacturing facilities. This includes the installation of advanced automation systems and the implementation of sustainable practices, such as the use of solar photovoltaic (PV) systems to reduce carbon footprint.

Key Achievements

• Sales Milestones: Honda Malaysia has consistently achieved impressive sales figures, with popular models like the Honda City and Civic driving significant demand. The company has also reached milestones such as producing 1 million units at the Pegoh plant.
• Sustainability Initiatives: Honda Malaysia is committed to sustainability, with efforts to reduce carbon emissions and promote eco-friendly practices. This includes the installation of solar PV systems at its manufacturing facilities and the introduction of hybrid models with extended battery warranties.

Strategic Priorities

• Technological Advancements: Honda Malaysia focuses on integrating advanced technologies in its vehicles, including safety features, connectivity options, and eco-friendly innovations. This ensures that customers receive the latest advancements in automotive technology, intertwining with the automotive giant’s emphasis on customer satisfaction.
• Customer Satisfaction: Honda prioritizes customer satisfaction by offering high-quality vehicles, comprehensive after-sales services, and engaging customer experiences. This includes expanding the dealer network and enhancing service capabilities.
• Sustainability: Honda Malaysia is dedicated to sustainability, with initiatives aimed at reducing environmental impact. This includes the use of renewable energy sources, efficient manufacturing processes, and the promotion of hybrid and electric vehicles.

Challenges and Opportunities

The automotive market is becoming increasingly competitive and demanding, with new technologies heightening customer expectations on car performance, customer service and safety requirements.

Supply Chain Disruptions

Challenge: Global supply chain disruptions, exacerbated by events like the COVID-19 pandemic, have significantly impacted the automotive industry. Honda Malaysia might face challenges in maintaining a steady supply of components and raw materials.

Opportunity: Deploy IoT-enabled supply chain management solutions to monitor and optimize logistics operations. This includes real-time tracking of shipments and automated inventory management, increasing visibility and reducing wastage.

Operational Efficiency

Challenge: While Honda’s domination in the market steadily increasing, ensuring operational efficiency across manufacturing facilities is critical for Honda to keep up with demands, maintaining competitiveness and reducing costs.

Opportunity: Implement CelcomDigi’s 5G network to support IoT devices across manufacturing facilities. This will enable real-time monitoring, predictive maintenance, and automated production lines, improving overall efficiency.

Customer Engagement and Experience

Challenge: Aligning with Honda’s emphasis on customer satisfaction, enhancing customer engagement and providing a superior customer experience are crucial for retaining customers and building brand loyalty.

Opportunity: Deploy advanced CRM solutions powered by AI to analyze customer data, predict trends, and improve customer service. Implement AI-driven chatbots and virtual assistants for 24/7 customer support.