Perodua Secures New Electronics Deal for Upcoming ICE Model Launch in 2027

Perodua is set to expand its internal combustion engine (ICE) vehicle lineup in the second quarter of 2027, following a new supply agreement confirmed by Tier-1 automotive supplier MCE Holdings. The deal ensures that a new, as-yet-unnamed model will be equipped with advanced technological components produced locally in Selangor.

The supply contract, valued at RM54.28 million, spans a 40-month period and marks a significant operational milestone for MCE Holdings. According to the original publisher, the company will manufacture a range of automotive electronics and mechatronic systems for the upcoming vehicle, including audio displays, reverse cameras, and components integrated into Advanced Driver Assistance Systems (ADAS).

Production of these components is scheduled to commence in the fourth quarter of the financial year ending July 31, 2027. This timeline aligns with a calendar launch window in the second quarter of 2027. The manufacturing will take place at the newly commissioned RM4.95 million MCE Auto Hub located in Serendah, Selangor, a facility designed to handle the increasing technical requirements of modern car manufacturing.

This project is notable as it represents MCE’s first engagement in supplying ADAS-related components for an ICE vehicle. Previously, the firm secured similar contracts for the QV-E electric vehicle, signaling a shift in the supplier’s portfolio toward higher-value systems. Goh Kar Chun, group managing director of MCE, emphasized that the firm’s long-standing partnership with the national carmaker has allowed them to move up the automotive value chain by taking on more sophisticated product designs.

For the Malaysian consumer, this development suggests a continued commitment from Perodua to refined, tech-integrated ICE vehicles even as the broader industry pivots toward electrification. For local investors and industry observers, the contract serves as a barometer for the health of the automotive supply chain. The investment into the Serendah facility suggests that Malaysian SMEs in the automotive ecosystem are increasingly being tasked with localization of high-value electronic components, potentially reducing reliance on imported systems.

From an economic standpoint, the announcement comes at a time when the broader Malaysian market is navigating complex conditions. With real GDP growth at 6.0% year-on-year, the automotive sector remains a critical pillar of industrial output. While the unemployment rate remains stable at 3.0% as of May 2026, the introduction of high-tech manufacturing roles at facilities like the MCE Auto Hub provides a boost to the technical labor market. Furthermore, with current headline inflation at 1.8%, manufacturers are under pressure to maintain cost-efficiency while meeting consumer demand for high-tech features like ADAS in more affordable, mass-market cars.

The timing of this news carries wider implications for the local market. Given that no new models are slated for production for the remainder of this year, following the recent releases of the QV-E and Traz, the 2027 timeline fills a specific gap in the national carmaker’s long-term roadmap. The industry is currently watching to see how this transition to higher-spec, tech-heavy ICE models will interact with shifting fuel policies, such as the current RON95 subsidy structures under BUDI95 and SKPS.

Whether this new model will be a successor to the long-standing Myvi, a facelift of the Bezza, or an entirely new nameplate remains unconfirmed. Perodua has not yet disclosed specific details regarding the vehicle’s identity, leaving market analysts to speculate on the potential for a new D10D project or further iterations of their existing volume-driving platforms.