Local Tier-1 automotive supplier MCE Holdings has secured MYR 54.28 million (US$13.4 million) in supply contracts with Perodua, valid for 40 months, or three years.

Under the contracts, MCE will supply automotive electronics and mechatronic components, including audio displays, reverse cameras and advanced driver assistance systems (ADAS)-related components, for an internal combustion engine (ICE) model. Production is scheduled to begin through subsidiary Multi-Code Electronics Industries in the fourth quarter of the financial year ending July 31st, 2027, corresponding to the second quarter of the following calendar year.

The components will be manufactured at the group's newly launched MYR 4.95 million MCE Auto Hub in Serendah, Selangor. The three-year contract will cover component supply to Perodua until 2030.

The project will be MCE's first supply of vehicle audio display and ADAS-related components for an ICE vehicle, in addition to its existing contract to provide such components for the QV-E EV. The company said the project will add to its range of components and systems.

"Our long-standing relationship with Perodua has given us the opportunity to grow alongside them, enabling MCE to progressively take on more sophisticated products, build our design and manufacturing capabilities and move up the automotive value chain," said group managing director Goh Kar Chun.

The production timeline indicates that Perodua's new model is unlikely to enter production this year, following the launch of the QV-E and Traz last year. The Myvi and Bezza are potential candidates for replacement, having been on sale for eight and 10 years, respectively. The Myvi is a potential candidate for a new generation, while the Bezza remains Malaysia's highest-selling car.

A teaser for the new model was shown at the Kuala Lumpur International Mobility Show (KLIMS), featuring design elements similar to those of the QV-E. The production timeline indicates that its introduction could take place later than previously anticipated as Perodua competes with Proton.

The Myvi is one potential candidate. The fourth-generation model, internally known as D01D, is expected to replace the current generation. The Myvi ranked fourth in sales as of last month, behind the Bezza, Proton Saga and Axia. The new model is expected to use an updated version of the third-generation platform, which is related to the second-generation model.

A next-generation Bezza is not expected before the end of the decade, although a major facelift could extend the current model's lifecycle. The sedan could receive updates similar to those introduced with the Saga's recent MC3 revision, including six airbags. MCE's three-year contract would cover supply to Perodua until 2030, which coincides with the expected timeframe for the next-generation Bezza.

The contract also provides information on Perodua's approach to vehicle electronics and driver-assistance technology. The new model will use the same infotainment and ADAS supplier as the locally developed QV-E, indicating that Perodua may be taking greater responsibility for these systems.

Perodua's existing ICE models use driver-assistance systems supplied by Daihatsu, while the QV-E uses systems developed in-house, along with much of its other technology. As Perodua continues developing locally engineered models, its reliance on Daihatsu for components other than the engine and gearbox could change.

The new model is expected to continue using Toyota/Daihatsu's NR family of four-cylinder engines, comprising the 95 PS 1.3-litre 1NR-VE and 103 PS 1.5-litre 2NR-VE, paired with a Dual-Mode CVT (D-CVT).

Perodua also plans to introduce hybrid powertrains, and the new model could use one of these systems. Potential options include Daihatsu's e-Smart Hybrid system, which uses an electric motor for propulsion while the combustion engine functions as a generator, or Toyota's system used in the Vios and Yaris Cross, which uses a planetary gearset to manage the two power sources. The forthcoming Ativa Hybrid is expected to be the first Perodua model to introduce a petrol-electric powertrain.

The MCE contract covers the local production of automotive electronics and mechatronic components for Perodua's vehicle programmes. Production at the MCE Auto Hub in Serendah will form part of the domestic manufacturing base supplying components to Perodua, while the QV-E programme is an existing application of locally developed vehicle systems.