Perodua is set to increase its purchase of local parts close to RM 4 billion (US$ 1.2 billion) this year from RM 3 billion annually in the past two years, as it steps up its production of vehicles.

Perodua Chairman, Tan Sri Asmat Kamaludin said the increase in purchase of local parts is also in line with Perodua's projections of higher sales this year. "We are projecting sales of 176,000 units of cars this year from 166,700 units in 2009," Asmat said during during a press conference in conjunction with the visit of Deputy International Trade and Industry Minister, Datuk Mukhriz Tun Mahathir, to Perodua's plant.

The increased purchase of parts and components would be for the Myvi, ViVa and the recently launched Alza which have between 80 and 90% local content. "More than 130 local vendors and suppliers will benefit from Perodua's decision to increase its production," Asmat said.

Perodua has been promoting the growth and improvement of local vendors through its vendor development and improvement programmes.

The company has invested some RM 97 million on facilities alone for its Research and Development (R&D) and more than RM 1.5 billion on model development in the past 13 years. "This underlies Perodua's strong commitment to the localisation policy and in-house development capabilities as well as the government's aspiration to see local companies enhance their R&D expertise," Asmat said.

Perodua's strategic partnership with Daihatsu Motor (DMC) has allowed the company to tap into the technologically advanced facilities and manpower expertise of DMC. Perodua is also exploring the possibility of expanding its market with focus on Asean countries. "Thailand offers huge opportunity while we plan to increase current exports to Singapore and Brunei," Asmat said.

Perodua currently exports some 2,000 units of vehicles to several countries among which are the United Kingdom, Singapore, Nepal, Sri Lanka, Mauritius, Fiji and Brunei.

Last year the company also exported components worth RM 27.3 million to Japan, Indonesia and Pakistan.

It has exported RM85 million worth of components since 2003.

Meanwhile, Managing Director of Perodua, Aminar Rashid Salleh said with the support of the government, manufacturers, Perodua and vendors themselves, more local vendors can meet global standards to be prominent global players. "There is still room for improvement among local vendors in terms of quality and standards," Aminar said at the press conference.

Aminar said with Perodua's focus on quality, productivity and cost, there is strong response even for older versions such as its Myvi which was launched five years ago. "The Myvi will undergo a facelift this year. On a monthly basis, we receive 8,000 to 9,000 orders. The Myvi is phenomenal for us. Every year the number of orders are increasing. Last year, 91,000 Myvi were sold," he said.

As for the recently launched Alza, a multi purpose vehicle, there has been tremendous interest as well. "We have received 23,000 units of orders since the launch and up to last month, 10,000 units were delivered," he said.

As for the ViVa, an average of 6,000 units are sold monthly.