allcarschannel Honda Malaysia today inaugurated its Number 2 Line assembly facility at its Pegoh plant in the Historic State of Malacca. At a cost of approximately RM 382 million, the no.2 line is meant to be the hub for locally-assembled Honda compact variants such as; the City and Jazz models.

Construction of the no. 2 line began almost 18 months ago and today’s inauguration of the 49,190 square meter facility denotes that all system is a go. The no.2 line compliments Honda’s no.1 line at Pegoh, Alor Gajah which was opened in January 2003.  Add the no.1 and no.2 lines, Honda’s Pegoh plant takes up a massive built-up area of 96,000 sq. m.

Honda’s no.2 line is hub for City and Jazz variants

With the support of the Malacca State government and Federal government, MITI (Ministry of International Trade and Industry), the no.2 line will now enable Honda Malaysia to double its production capacity from 50,000 to 100,000 units by 2016; about 200 to 400 cars on a daily basis. The Pegoh plant in its totality sees the production of most CKD (Completely-knocked Down) Honda variants like the City, Civic, CR-V, Accord and Jazz Petrol and Hybrid. Honda holds the top rank position in the hybrid segment with a 50 percent market share or 22,000 units sold as at December 2013.

In recent years, Honda has enhanced its major level operations in the country with the introduction of a Parts warehouse, a Test track facility, a Pre-Delivery Inspection (PDI) Center and more recently, a dedicated rail line to attain a smoother supply and logistic chains. With the no.2 line, Honda has implemented new technologies to achieve an even higher standard in automotive manufacturing. These new technologies include automated smart welding machine, state-of-the-art painting facility with spray robots and under body coating and multi-driving tester for vehicle quality checks.

In addition, the second plant creates more job opportunities for the Malacca folks and citizens. Honda Malaysia expects to employ up to 700 new associates in due time.

Honda Malaysia’s Managing Director and CEO Yoichiro Ueno expressed, “With the opening of the No.2 Line, Honda looks forward to assembling more vehicles for the growing domestic market particularly in the compact variants and hybrids, which has seen steady growth over the past couple of years.”

“The automotive industry in the country has shown rapid growth in the past 5 years and we are grateful to the government for the continuous support to the industry, especially in promoting energy efficient vehicles. We have set our mid-term plan to make additional investments of RM1 billion in 3 years starting in 2012, to the manufacturing and sales network,” Ueno reiterated.

Honda Malaysia to continue to offer attractive product line-up at affordable pricings

It is Honda M’sia intentions to produce more attractive variants at affordable prices for the domestic market. And, this is achievable through the use of 70 percent locally-sourced parts and components; up from 40 percent in the  previous year.

At Honda’s Pegoh plant, the Green Factory concept is actively observed with these environmental clauses: the use of high efficiency equipment and processes, cleverly recycling and reusing energy, and effective water management. These efforts support Honda’s global environment target of reducing CO2 emissions by 30% by 2020.

As part of its RM 1 billion 3-year investment venture, Honda M’sia expects to increase its sales network t0 90 dealers by the end of 2015.

The inauguration ceremony was attended by Dato’ Sri Mustapa bin Mohamed, Minister of International Trade and Industry (MITI), Dato’ Wira Hj Md Yunos bin Husin, representative of the Malacca State Government; Ambassador of Japan to Malaysia, Shigeru Nakamura; and Hiroshi Kobayashi, President and CEO of Asian Honda Motor Co., Ltd.