PETALING JAYA, Sime Darby Bhd’s subsidiary Sime UMW, formerly known as UMW Holdings Bhd, plans to increase its capital expenditure (capex) to RM375mil for the financial year ending June 30, 2026 (FY26), up from about RM300mil in FY25.
Although the group has a diversified portfolio spanning automotive, equipment, manufacturing, engineering and aerospace, around 85% of Sime UMW’s earnings are derived from its automotive division.
Sime UMW managing director Datuk Mustamir Mohamad.
Sime UMW holds a 38% stake in Perusahaan Otomobil Kedua Sdn Bhd (Perodua), alongside Daihatsu Motor Co Ltd (25%), MBM Resources Bhd (20%), Permodalan Nasional Bhd (10%) and Mitsui & Co Ltd (7%). Daihatsu is wholly owned by Toyota Motor Corp.
The group also owns 51% of UMW Toyota Motor Sdn Bhd, which manufactures and sells Toyota vehicles in Malaysia, with the remaining 49% held by Toyota and its affiliate.
According to managing director Datuk Mustamir Mohamad, most of the additional capex will be channelled into launching new Toyota models and facelifts. Perodua’s development pipeline includes a B-segment sport utility vehicle, similar to Thailand’s Yaris Cross, targeted for 2026, and a full model change for the Myvi in 2027.
Perodua’s first electric vehicle (EV) is set to debut by year-end with an estimated price of around RM80,000. Mustamir noted that battery costs remain high at about 50% of total vehicle cost, and the company is working with an overseas engineering partner (separate from Daihatsu) to address this. Further details will be revealed in October. Initial EV production is projected at 6,000 units annually.
On the government’s planned rationalisation of the RON95 fuel subsidy, Mustamir said the move is unlikely to affect Perodua significantly as about 85% of its customers fall within the B40 and M40 income groups, who will remain eligible for subsidies. He added that some T15 consumers may shift to smaller cars for fuel savings, which could benefit Perodua, while others may opt for Toyota’s hybrid offerings.
Currently, incentives for fully imported (CBU) EVs are scheduled to end by late 2025. While Perodua exports CBU units to markets including Brunei, Sri Lanka and Indonesia, export volumes are less than 1% of domestic sales due to persistent local demand.
The company’s order backlog has eased from over 100,000 units to around 80,000, but Perodua continues to prioritise Malaysian buyers.
The Malaysian Automotive Association forecasts total industry volume (TIV) to normalise to about 780,000 units in 2025 from a record 817,000 units in 2024. However, Mustamir expects 2025 sales to be closer to 800,000 units, with sustained demand of between 800,000 and 850,000 units in subsequent years.
On exports, Mustamir said margins are thinner due to higher logistics and set-up costs, as well as local content requirements for completely knocked down (CKD) units. Nonetheless, Perodua has long-term plans to expand its overseas presence.
Sime completed its RM5.84bil acquisition of Sime UMW in 2024, after buying a 61.2% stake from Permodalan Nasional Bhd for RM3.57bil in 2023, followed by a mandatory general offer for the remaining 38.8% at approximately RM2.27bil.
