Perodua and PETRONAS Lubricants inks RM355 million deal

01 Jun 2016

Kuala Lumpur, 1 June: Perodua Sales Sdn Bhd, a wholly-owned subsidiary of Perodua, and PETRONAS Lubricants Marketing (Malaysia) Sdn Bhd (PLMM), a wholly-owned subsidiary of PETRONAS Dagangan Bhd inked a RM355 million deal for the latter to supply 17 million litres of engine oil to Perodua, an increase of 21% over the previous contract, for a period of 5 years.

The contract is a continuation of an existing genuine oils partnership between the two companies since 2003. This long term partnership is not just a business transaction but a clear testimony of Perodua’s confidence in PETRONAS’ capabilities to supply quality products and unparalleled services.

“Our partnership with PETRONAS has been very fruitful as they offer one of the best engine lubricants both domestically and globally,” Perodua Sales Sdn Bhd, Managing Director, Dr Zahari Husin said.

“The partnership that we have renewed today with Perodua, a leading national automobile manufacturer in Malaysia has certainly strengthened the consumer segment of PETRONAS' lubricants business, which will be a core part of our growth strategy moving forward,” PETRONAS Lubricant Marketing (Malaysia) Chief Executive Officer, Zubair Abdul Razak said.

This contract renewal will also witness the launch of a higher grade engine oil which exceeds the API SM standard and is catered for Perodua customers servicing their vehicles at independent workshops or on their own.

This new product provides full engine protection as it is designed with improved oxidation resistance, higher protection against carbon deposits, better wear protection, and increased performance over the oil service life. This means the oil provides protection that is needed by Perodua engines.

The engine oil technology allows extended engine oil drain interval while at the same time give better fuel efficiency as the oil provides excellent lubrication when driving.

This new product will be available beginning September 2016 and the price will be announced by then.

“We look forward to the introduction of this new engine oil for our customers looking for the best protection for their engine. We realise that some of our post warranty customers have moved on to service their own vehicles, that being said, we have invested a lot of resources to improve our operations and we hope that they will give Perodua another chance,” Dr Zahari said.

Dr. Zahari said that Perodua targets an intake of 2 million vehicles this year at its 189 service centres nationwide. This is an increase of 40,000 intakes from the 1.96 million intakes recorded in 2015.

“Perodua wishes to thank PETRONAS in general and PLMM in particular for all their support and we look forward to many more years of fruitful partnership between us,” Perodua President and Chief Executive Officer Datuk (Dr) Aminar Rashid Salleh said.