Improving Design Capabilities for Automotive Industries in Malaysia

ABSTRACT

Malaysian automotive companies have enjoyed considerable growth ever since the launching of Proton Saga, the first Malaysian car in 1985. However with the realization of Asean Free Trade Area (AFTA) in 2005 plus the new globalization challenge from Asian and multi-national companies, it is essential for Malaysian automakers to improve their competitive values. One of the significant factors, which are design capability, has become more influential and value-added to Malaysian automotive companies that seek to accomplish the objective set by National Automotive Policy (NAP). Hence, the aim of this paper is to highlight the issues regarding the design capability faced by Malaysian automotive companies and ways to improve them.

INTRODUCTION: UNDERSTANDING THE DESIGN EVOLUTION

IN MALAYSIAN AUTOMOTIVE INDUSTRY

It was Tun Dr. Mahathir, the former Prime Minister of Malaysia who conceived the concept of a National Car with the goal of enhancing Malaysian industry. Proton is a Malay acronym for Perusahaan Otomobil Nasional Sdn. Bhd.. It was largely a manufacturer of badge engineered vehicles from Mitsubishi Motors between 1985 and early 2000s. Proton Saga was the first National Car, launched in 1985 followed by a series of Mitsubishi-based models such as Wira, Satria, Putra and Perdana. During this time, most design works were done with the assistance of Mitsubishi as part of their bilateral agreement. However, Proton began producing indigenously designed models from 2000 onwards. That includes Waja, Gen2, Satria Neo and second generation Saga. The most recent models with Proton design input are Exora and Preve. These models were done in Malaysia, with no less than 50 percent of the design works by Proton engineers while the remaining designs were sub-contracted to external design consultant.

Meanwhile, Perodua is a Malay acronym for Perusahaan Otomobil Kedua Sdn. Bhd., launched their first car called Perodua Kancil in 1994. All Perodua cars are badge...