![New Japan-Malaysia Mitsubishi JV for a higher quality CKD 2020 Mitsubishi Xpander 01]()
Mitsubishi Motors Malaysia (MMM) have taken the covers off the 7-seater 2020 Mitsubishi Xpander. Prices have yet to be announced (like many other companies, MMM has to deal with a very fluid situation in this Covid-19 period) but the company expects to release the price lists to dealers within November.
Competing against the Perodua Aruz and Honda BR-V, the 1.5-litre naturally aspirated Xpander is locally-assembled (CKD) at its local partner’s DRB-Hicom’s facility in Pekan.
![New Japan-Malaysia Mitsubishi JV for a higher quality CKD 2020 Mitsubishi Xpander 02]()
This is a different arrangement from the company’s other CKD models like the ASX and Outlander, both of which are assembled at its contract manufacturer Tan Chong Motor Assemblies (TCMA) plant in Segambut – the arrangement with TCMA will remain unchanged.
For the Xpander however, MMM has setup a new joint venture company together with its principal Mitsubishi Motors Corporation. Called MMC Manufacturing Malaysia Sdn. Bhd., the joint venture (JV) company will manage localization and sub-assembly operations of the Xpander at the Pekan plant.
![New Japan-Malaysia Mitsubishi JV for a higher quality CKD 2020 Mitsubishi Xpander 01]()
The JV company has set a very modest planned production capacity of just 6,000 units of Xpander per year. Of course, further expansion is possible but considering the current market condition, MMM wants to avoid over-capacity.
For reference, Honda Malaysia produced 7,683 units of the Honda BR-V in 2019 while Perodua, riding on its near-full tax exemption benefit as a national car maker, made 29,293 units of the Perodua Aruz last year.
![New Japan-Malaysia Mitsubishi JV for a higher quality CKD 2020 Mitsubishi Xpander 02]()
Explaining the rationale behind splitting its production across two locations (Segambut and Pekan), MMM’s CEO Tomoyuki Shinnishi said:
“One of our shareholder is DRB group, which has a car assembly facility in Pekan. We can fully utilize DRB’s facility to make our Xpander more competitive. On top of that, we have established a new joint venture company together with Mitsubishi Motors from Japan, to do sub-assembly at Pekan”
“So we’ve got much more commitment from Mitsubishi (Japan) to make our Xpander more competitive, and also with higher quality,” he added.
![New Japan-Malaysia Mitsubishi JV for a higher quality CKD 2020 Mitsubishi Xpander 03]()
Hoffen Teh, Senior Vice-President at MMM also added that localization is crucial to qualify for tax deduction benefits (which in turn ensures price competitiveness).
“Without manufacturer’s involvement, it’s a bit difficult to expand some of the localization,” said Hoffen.
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CEO Shinnishi said, “In Malaysia, in order to maximize our sales volume, the model should be CKD basis. CBU is very difficult. A CKD model should increase localization, to contribute to society and to Malaysia’ economy. In order to realize it, MMM – and we are just a distributor – we need to involve our shareholders from DRB group more, and also Mitsubishi [Motors] Japan.
When asked if Mitsubishi will still continue to produce the ASX and Outlander at TCMA’s Segambut plant, Shinnishi said, “Of course, that will remain unchanged.”
Mitsubishi Xpander gallery