Strategic and technological approaches to advancing new product development in Malaysia’s automotive industry

Norreha Othman; Airuddin Ahmad; Ahmad Fauzi Ahmad Zaini; Mohd Hadli Shah Mohamad Yunus

doi:10.61688/jev.v7i1.565

Authors

Norreha Othman Universiti Poly-Tech Malaysia
Airuddin Ahmad Universiti Poly-Tech Malaysia
Ahmad Fauzi Ahmad Zaini Universiti Poly-Tech Malaysia
Mohd Hadli Shah Mohamad Yunus Universiti Poly-Tech Malaysia

DOI:

https://doi.org/10.61688/jev.v7i1.565

Keywords:

New product development, Information Technology, Malaysian Automative Industry

Abstract

The Malaysian automotive industry is integral to the nation’s economic development, with domestic manufacturers like Proton and Perodua contributing significantly to manufacturing, employment, and exports. New Product Development (NPD) is a critical driver for sustaining competitiveness in a rapidly evolving global market. However, the NPD process in Malaysia faces several challenges, including inefficiencies, strategic misalignment, and limitations in IT capabilities, particularly among small and medium-sized enterprises (SMEs). This paper examines the interconnection between the NPD process, strategy, and IT capability in the Malaysian automotive industry and their collective impact on NPD success. The NPD process in the automotive sector, which involves stages such as idea generation, design, and product launch, often suffers from coordination challenges across departments and delays due to a lack of standardized practices. A clear and adaptable NPD strategy is crucial for addressing these challenges, ensuring that product development aligns with market trends and technological advancements, especially with the growing demand for energy-efficient vehicles. Furthermore, the role of IT capability in enhancing NPD efficiency cannot be overstated. While large automotive manufacturers have adopted advanced IT systems such as CAD and Product Lifecycle Management (PLM), SMEs face barriers in implementing these tools due to financial constraints and skill shortages. To overcome these obstacles, automotive vendors must invest in IT infrastructure, strategic partnerships, and innovation ecosystems. This paper discusses actionable recommendations for overcoming the barriers to NPD success in Malaysia, fostering sustainable growth in the automotive industry.

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