RAWANG: Electronics manufacturing services (EMS) provider Betamek Berhad has secured RM436.5 million contract to supply various electronics parts for Perusahaan Otomobil Kedua Sendirian Bhd’s (Perodua) new car model.
The company’s wholly owned subsidiary Betamek Electronics (M) Sdn Bhd (BESB) yesterday received a Letter of Instruction (LOI) from Perodua.
Pursuant to the LOI, the supply of the electronics parts is expected to commence in the fourth quarter of the financial year ending March 31, 2025 (FY2025), and is for a duration of six years.
The contract is expected to contribute positively to the earnings of Betamek Group over a six-year period, commencing from FY2025.
Managing director Mirzan Mahathir said the demand for the company’s vehicle audio visual (AV) products and vehicle accessories is expected to grow in tandem with the increasing demand for its major customers’ vehicles.
“Although the sales tax exemption incentive for passenger vehicles concluded last month, we are confident that the demand for our vehicle AV products and vehicle accessories will continue to grow alongside with the strong demand for our major customers’ vehicles,” he added.
Perodua had recently announced that it is on track to meet its 330,000 production and 314,000 registration targets this year, as the compact car company would further improve on its operational efficiencies.
As at June 30, 2023, Perodua produced 153,813 vehicles, an increase of 17% compared with 131,641 units made in the same period of 2022.
This production achievement has resulted in a registration increase of 13.6% to 144,690 vehicles for the first half of 2023 compared with 127,343 units sold in the same period last year.