Honda earmarks RM300m for capex

SHAH ALAM: Honda Motor Co plans to spend up to RM300 million in capital expenditure (capex) in Malaysia this year.

This includes the budget to set up a new pre-delivery inspection facility, a new warehouse and bolster production capacity.

Honda Malaysia Sdn Bhd president and chief operating officer Rohime Shafie said out of the RM300 million, about RM50 million will be spent on the new pre-delivery inspection unit at Honda's production facility in Pagoh, Malacca, measuring 12.1ha.

Honda will also extend its testing track to 2.1km from 0.9km, which will be ready by June this year.

"We also spent RM40 million to build a new spare parts warehouse in Bukit Jelutong, which is already operational so that we don't have to rent anymore at our old warehouse in Port Klang," Rohime said yesterday at the launch of Honda's latest 3S (service, sales, spareparts) centre in Setia Alam here yesterday.

He added that the Japanese carmaker needs to expand to meet rising demand for its vehicles, which is set to hit 46,500 units this year.

The company sold 32,000 units last year, a drop of 27 per cent from 44,000 units in 2010 due to the tsunami in Japan.

Honda also owns a pre-delivery inspection unit in Bangi, Selangor.

"The new warehouse in Bukit Jelutong is bigger, measuring 5.2ha storing some 20,000 vehicle parts worth RM25 million at one time," said Rohime.

Meanwhile, Tiong Nam Motor (M) Sdn Bhd managing director Yoon Wai Cheong said it had invested RM7.3 million to set up Honda's 60th dealer network in the country spanning 22,937 sq ft.

This is to meet rising sales in Selangor, which accounts for 24 per cent of its sales.