Malaysia’s Petronas Lubricants Marketing (M) Sdn Bhd, a unit of Petronas Dagangan Bhd, has signed an agreement to supply 17 million litres of engine oil to Perodua Sales Sdn Bhd. Perodua Sales Sdn Bhd is responsible for the sales, marketing and distribution of all Perodua vehicles, as well as after sales and spare parts operations.
The contract is a continuation of an existing genuine oils partnership between the two companies since 2003. The new five-year deal, worth MYR 355 million (USD 85.5 million), represents a 21% increase over the previous contract.
“Our partnership with Petronas has been very fruitful as they offer one of the best engine lubricants both domestically and globally,” said Perodua Sales Managing Director Zahari Husin.
“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,” said Petronas Lubricants Marketing CEO Zubair Abdul Razak.
The contract renewal also coincides with the launch of a higher grade engine oil which exceeds API SM that caters to Perodua customers servicing their vehicles at independent workshops. This product would be commercially available in September.
“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,” Zahari said. He said that Perodua is targeting to service two million vehicles this year at its 189 service centres nationwide, an increase of 40,000 from last year.