Proton, a Malaysian vehicle manufacturer, teams up with top-tier Chinese suppliers to bolster its local supply chain.

In the rapidly evolving automotive landscape, Malaysia is making significant strides in boosting local production and forming strategic partnerships with global players.

SHJ Interia Sdn Bhd and Changchun Fawsn Automotive Trim Co are examining new manufacturing approaches for interior components, including headlining. This move is part of a broader trend towards localised production, which is gaining momentum due to the recent tariff conflict between the US and China.

Proton, Malaysia's national carmaker, is at the forefront of this shift. The company has formed a strategic partnership with Zhejiang Geely Holding Group and is involved in four joint venture agreements (JVs) and two technology transfer agreements (TTA) with various Chinese suppliers. Proton's chief procurement officer, Wang Huaibing, emphasised the importance of bringing the development and production of high-tech components into the local ecosystem.

One such collaboration is between Malaysia's Xenso Electronics Sdn Bhd and China's Freetech Intelligent Systems Co Ltd. They are working together on Advanced Driver Assistance Systems (ADAS) detection systems to improve blind spot monitoring and lane change assist of Proton models.

Delloyd Technology will produce Imotion Automotive Technology's advanced driver assistance systems (ADAS), further strengthening Malaysia's capabilities in this area.

Meanwhile, PEPS JV (M) Sdn. will produce Liuzhou Sanly Autoparts Company's braking systems, while Trillion Speed (M) Sdn. will locally produce Shanghai Yinlun Heat Exchange Systems Company's heating, ventilation and aircon (HVAC) system.

Audi has also joined the local production bandwagon, investing in increasing its production capabilities in Malaysia and launching its return to manufacturing in the country with the Q7 SUV, fully assembled from locally produced components. Dr Susanne Lehmann, managing director of Volkswagen Group Malaysia, underscored the importance of localised assembly in maintaining resiliency in the supply chain and ensuring customers "continue to experience the same Audi quality, performance and luxury."

The automotive industry's focus on localised production is not limited to Malaysia. ALSC ASEAN 2025, set to debut in Singapore, will feature senior OEMs, suppliers, and tech leaders shaping regional strategy. Notable attendees include Dr Lehmann and other leaders in the ASEAN market.

In the search for insights on supply chain strategy, the Top 10 list of nearshoring Red Sofa interviews provides valuable insights from experts in the field.

Lastly, JHM Consolidation Bhd and Jiangsu Dekai Auto Parts Company will begin joint headlamp production at JHM Consolidation Bhd's Malaysian plants, marking another step forward in the country's localised production journey.

These developments underscore Malaysia's commitment to strengthening its position in the global automotive industry through localised production and strategic partnerships.