daihatsu perodua engine manufacturing

What daihatsu perodua engine manufacturing does

Daihatsu Perodua Engine Manufacturing Sdn. Bhd. (DPEM) is a private Malaysian joint venture established in September 2014 between Daihatsu Motor Corporation of Japan and Perodua (Perusahaan Otomobil Kedua Sdn. Bhd.). The company operates a single integrated engine and components plant at Bandar Sri Sendayan, Negeri Sembilan, occupying 142,000 square meters with a rated capacity of 18,000 engines per month and employing 481 staff. Its product mix centers on the NR family of small-displacement engines and the associated upstream components — cylinder heads, crankshafts, and engine blocks — covering the full value chain from casting through final assembly under a Toyota-aligned production system.

The customer base is structurally captive and consists of three named accounts: Perodua, Toyota Assembly Services (Malaysia), and Astra Daihatsu Motor Indonesia, the latter receiving component-parts exports that began in January 2018. The business model is therefore a tier-1 OEM transfer-pricing arrangement with related-party customers, monetized on volume shipped rather than market-discovered pricing. The company achieved ISO 9001 and ISO 14001 certifications in February 2020, reached cumulative production of 1 million engines by January 2023, signed the Toyota Pledge in February 2024, and commissioned a 2,986.55 kWp solar system in January 2024 reportedly saving RM 4 million annually.

Revenue is not publicly disclosed. All output is internal combustion engines and engine components, with no disclosed electrification or hybrid-engine program, leaving the business exposed to the structural transition away from ICE vehicles in its core ASEAN markets.

Name

daihatsu perodua engine manufacturing

Legal name

DAIHATSU PERODUA ENGINE MANUFACTURING SDN. BHD.

Website

https://dpem.com.my

Company type

Private

Founded year

2014

Operating status

Operating

Short description

DPEM is a Malaysian joint venture between Daihatsu Motor (Japan) and Perodua that manufactures NR engines, cylinder heads, crankshafts, and engine blocks at its Sendayan plant, supplying Perodua, Toyota Assembly Services, and Astra Daihatsu Indonesia.

Ownership category

akta.pro rank

Product category

Automotive Engine Manufacturing

NAICS

Motor Vehicle Gasoline Engine and Engine Parts Manufacturing (33631), Engine, Turbine, and Power Transmission Equipment Manufacturing (33361)

SIC

Engines & Turbines (3510)

akta.pro primary industry

Internal Combustion Engine (ICE) Manufacturing (Gasoline/Diesel) (IMACAHAA)

akta.pro secondary industry

Engine Components & Subsystems Manufacturing (Blocks/Heads/Valvetrain/Pistons) (IMACAHAB)

Keywords

• Engine manufacturing
• Automotive powertrains
• Cylinder head casting
• CNC engine machining
• Energy Efficient Vehicles

GTM type

B2B

Offering type

Hardware or Manufacturing

Cost components

Supply Chain, Operations, Personnel, Technology or R&D, Infrastructure

Revenue model

1. Engine Manufacturing and Sales: DPEM manufactures and sells complete engines and engine components to automotive OEMs including Perodua, Toyota Assembly Services, and exports to Astra Daihatsu Motor Indonesia. The company operates with fully integrated production from raw materials to finished products.

Go-to-market motion1 record

Distribution channels2 records

Marketing channels3 records

Core offering

DPEM manufactures and sells internal combustion engines (including the NR engine series) and automotive powertrain components such as cylinder heads, crankshafts, and engine blocks through fully integrated in-house casting, CNC machining, and assembly operations. Production is supplied to automotive OEMs — primarily Perodua and Toyota Assembly Services in Malaysia, with CKD component exports to Astra Daihatsu Motor Indonesia — at a capacity of 18,000 engines per month on a two-shift system.

Product overview

Daihatsu Perodua Engine Manufacturing Sdn. Bhd. (DPEM) is an engine manufacturing company specializing in the production of engines and engine components for Energy Efficient Vehicles (EEV). The company operates a fully integrated production system from raw materials to finished products. Core products include the NR engine and key components such as cylinder heads, crankshafts, and engine blocks. DPEM operates casting and machining production facilities with a monthly capacity of 18,000 units.

Differentiator

Problem solved

Functional benefit

Products and services

• NR Engine Internal combustion engine for vehicles, manufactured through fully integrated production from raw materials to finished product. The NR engine is the first engine produced by DPEM and is targeted at Energy Efficient Vehicles (EEV).
• Cylinder Head Engine component manufactured in-house at the Casting Shop and supplied as part of fully integrated engine production; also exported as CKD to international automotive manufacturers.
• Crankshaft
• Engine Block Engine component machined in-house at the Machining Shop as part of DPEM's fully integrated manufacturing process.

Quantifiable outcome

• Produced 1 million engines by January 2023
• +1 more outcomes

Named customers3 records

Segments2 records

Ideal customer profiles1 record

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature3 records

Partnerships

Seven partnerships are on record, tiered core and minor.

• Tenaga Nasional Berhad (TNB) / GSPARX Sdn. Bhd.coreStrategic or Co-development Partner · 1 January 2024TNB and GSPARX partnered with DPEM for solar installation project. TNB Bangsar visited to review progress and address project issues. Solar installation of 2,986.55kWp capacity with expected savings of RM 4 million in first year.
• Independent European Certification Sdn. Bhd (IEC)coreOthers · 21 February 2020IEC assessed and certified DPEM for ISO 9001:2015 (Quality Management System) and ISO 14001:2015 (Environmental Management System). Certifications ensure compliance with international standards for quality and environmental management.
• PeroduacoreStrategic or Co-development PartnerPerodua is the primary local customer and strategic partner. DPEM supplies engines and engine components for Perodua vehicles. DMC management regularly visits to monitor operations and provide support.
• Toyota Assembly ServicescoreChannel Partner/ Reseller/ DistributorToyota Assembly Services is a local customer receiving engine supplies from DPEM. DPEM received 2nd place Overall Best Supplier Award at Toyota supplier conference in 2024.
• Astra Daihatsu Motor IndonesiacoreChannel Partner/ Reseller/ DistributorExport customer for DPEM engines. DPEM exports engine components including cylinder heads and crankshafts to the Indonesian market.
• Daihatsu Motor Corporation (DMC)coreStrategic or Co-development PartnerParent company providing technical guidance and operational support. DMC executives regularly visit DPEM to monitor performance, share best practices, and ensure alignment with Daihatsu standards. Toyota Motor Asia delegation also visited to understand DPEM's production processes.
• ShimizuminorImplementation/ SI/ Consulting PartnerConstruction partner involved in building the New Training Centre and Warehouse. Handkey ceremony witnessed by Shimizu and DPEM sides in June 2023.

Scale indicators5 records

Recent moves11 records

Expansion highlights3 records

Direct peers

• Honda Malaysia Sdn. Bhd. Honda Malaysia operates engine and vehicle assembly plants in Malaysia, producing powertrains and components for passenger vehicles. Directly comparable as a Japanese-affiliated ICE engine manufacturer serving the Malaysian and regional OEM market.
• Toyota Motor Manufacturing Indonesia (TMMIN): TMMIN manufactures engines, vehicles, and components in Indonesia as a Toyota Group operation. Highly comparable as a Toyota-affiliated ICE powertrain producer serving the same regional OEM customer base (including Astra Daihatsu Motor).
• Astra Honda Motor: Astra Honda Motor produces engines and motorcycles in Indonesia as a Honda JV with Astra. Comparable as an Asian OEM-affiliated ICE engine manufacturer supplying regional vehicle platforms.
• HPP Industries (Honda Precision Parts): HPP Industries is a Malaysian Tier-1 manufacturer of precision engine and drivetrain components for Honda. Comparable as a Japanese-affiliated engine components manufacturer operating from Malaysia with regional export footprint.
• Musashi Seimitsu Industry Co., Ltd. Musashi Seimitsu manufactures crankshafts and engine components globally, with operations in ASEAN markets. Comparable as a precision engine component manufacturer with integrated casting and machining operations supplying Japanese-affiliated OEMs.
• Isuzu Malaysia Sdn. Bhd. Isuzu Malaysia assembles commercial vehicles and engines in Malaysia for the ASEAN market. Comparable as a Japanese OEM-affiliated ICE engine and vehicle manufacturer operating a Malaysian production facility.

Regional players

• Proton (PROTON Holdings Berhad): Proton is Malaysia's national car manufacturer with in-house powertrain operations through its Tanjung Malim facility. Comparable as a Malaysian automotive OEM with related ICE powertrain manufacturing capabilities, though primarily a vehicle assembler rather than dedicated engine manufacturer.

Emerging players

• HICOM Engineering: HICOM Engineering (formerly HICOM Diecastings) provides casting and machining for automotive powertrain components in Malaysia. Comparable as a Malaysian-based tier-1 engine components manufacturer serving regional OEMs.

Broad incumbents

• Daihatsu Motor Co., Ltd. Daihatsu Motor is the Japanese parent company and JV partner of DPEM, producing a broad range of engines and vehicles globally. Comparable as the parent entity whose technology and quality standards DPEM operates under.
• Perodua (Perusahaan Otomobil Kedua Sdn. Bhd.): Perodua is Malaysia's second national car maker and DPEM's JV parent and largest customer. Comparable as the downstream OEM customer that DPEM's NR engine production serves.

Market position

Strengths4 records

Weaknesses4 records

Competitive moat5 records

Key risks6 records

Key highlights7 records

Customer concentration

Compliance2 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles6 records

Funding overview

Funding rounds

Investors

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M&A

Investments

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Frequently asked questions about daihatsu perodua engine manufacturing