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| DENSO Malaysia Managing Director Hidekuni Sugi |
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In 2005, vehicle sales in Malaysia reached a record 550,000 units, an impressive figure in a country of around 25 million people. That was great news for companies such as DENSO, the largest automotive components manufacturer in Malaysia and a major supplier of carmakers in the country.
Based in Japan, DENSO has a global network that extends over 198 companies across 31 countries. Since first establishing operations in Malaysia in 1980, the company has become one of the parent company’s major manufacturing sites in Asia.
In fact, Malaysia is home to DENSO’s only electronic components production plant in the ASEAN region.
‘‘Our business philosophy at DENSO has always been based on QDC: Quality, Delivery and Cost. Today, we also put great emphasis on environmental issues and safety. Last year, we reached our goal of having zero emissions at our factory in Malaysia and are very proud of this,’’ says Managing Director Hidekuni Sugi.
Among the main components produced in Malaysia include thermal systems products such as car air conditioners and radiators. Engine electrical control units and CDI amplifiers are also produced in Malaysia for the global market.
Fifty percent of the company’s total revenue comes from exports and Sugi expects international business to increase over the next five years.
‘‘We have begun exporting electronic components to South America and we see further potential in this region of the world,’’ explains Sugi.
Ninety percent of DENSO’s domestic business in Malaysia comes from the OEM market, which will remain a core component of its business. It supplies some of the top names in the industry such as Proton, Perodua, Toyota, Honda, Suzuki and Hino Motors.
‘‘Our sales in Malaysia have increased every year until 2006. This is due to a slowdown in the auto industry in Asia last year. We are optimistic that sales will bounce back this year to our 2005 level and continue to grow,’’ says Sugi.
www.denso.com.my
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