MAA: Local manufacturers looking to alternative suppliers to ramp up production

Local car manufacturers are reportedly looking to alternative suppliers to shore up their component supply chains, after being hit hard by work stoppages due to lockdowns and chip shortages earlier this year.

Malaysian Automotive Association (MAA) President, Datuk Aishah Ahmad told Berita Harian that there have been delays in the production of local assembly (CKD) for manufacturers due to the chip production shortage around the world, resulting in long waiting periods for customers.

Also read: As the chip shortage issue continues, what are car companies doing to adapt?

She added, “To overcome this problem, automotive industry players in Malaysia are trying to speed up vehicle production by ordering local components from alternative suppliers,”

Perodua was especially hit hard by chip shortages, leading to prolonged waiting periods for popular models such as the Perodua Axia and Ativa. The Myvi was perhaps the worst affected by chip shortages.

As for Proton, CEO of Proton Edar, Roslan Abdullah said that Proton received a healthy number of orders between late-2020 and early-2021 but was unable to meet demand on the back of chip shortages, factory stoppages as well as component suppliers that had to shut down due to COVID cases.

Thus far, the statement made by MAA is light on specifics, as to which companies are looking to diversify their supply chain, and which components are needed to ramp up production.

Also read: Global shortage of semiconductor chips for cars will drive prices up

Also read: Failure to contain Covid-19: Chip manufacturers mull exiting Malaysia