MODENAS Ambitious Expansions: Enhance Manufacturing Capability, Diversifying Product Range and Begins New Export Frontier

Motosikal Dan Enjin Nasional Sdn. Bhd. (MODENAS), headquartered in Gurun, Kedah, was established in 1995 under the umbrella of DRB-HICOM Berhad, which holds 81% stake, while Kawasaki Heavy Industries (KHI) of Japan owns the remaining 19%. Since its inception, MODENAS has emerged as Malaysia’s leading full-scale motorcycle manufacturer equipped with its very own R&D, aiming to redefine the country’s motorcycle industry.

The journey began with the debut of its flagship model, the Modenas Kriss 110, showcased during Malaysia’s National Day parade in 1996, marking the start of mass production and introducing what remains as its most iconic model to this day. Over the years, MODENAS has introduced more than 50 models, ranging from 110cc underbone motorcycles to 1000cc super bikes, all distributed through its subsidiary, Edaran Modenas Sdn. Bhd. (EMOS).

In April 2019, KAWASAKI made a strategic decision to increase its stake in MODENAS to 30%, leading to the establishment of new assembly lines dedicated to manufacturing of Kawasaki models for the expanding domestic market. To support this initiative, MODENAS invested more than RM20 million to expand its Completely Knocked Down (CKD) assembly lines, aiming to meet the growing demands for both Modenas and Kawasaki products, not only within Malaysia but also for international market.

This long-term partnership has enabled MODENAS to adopt new technologies through knowledge transfer and enhance its global footprint by leveraging on KAWASAKI’s global network. In 2023, MODENAS successfully exported products to the Middle East, ASEAN, and Europe. From March 2024, MODENAS began exporting the locally assembled Kawasaki ZX-6R to China, a key global market, and plans to introduce Modenas scooters to Philippines by July 2024, proving its commitment to meet diverse global customer preferences. Additionally, the successful expansions have managed to create numerous job opportunities that directly contribute to the local economic growth.

MODENAS now has the capability to assemble Kawasaki’s 250cc to 900cc products, with plans to include models above 1000cc in the future. The company is among the select few global motorcycle manufacturers entrusted by KAWASAKI to locally assemble its products outside its Akashi, Japan factory. Recently recognised as Malaysia’s “Exceptional Motorcycle Manufacturer” at the MyMAP Grand Prix 2024, MODENAS plans to further expand its product portfolio with Kawasaki leisure models such as PWC (Personal Watercraft-jet skis), RUV 4×4 (Recreational Utility Vehicle), and ATVs (All-Terrain Vehicle) in the Malaysian market. Moreover, MODENAS has also launched its EV scooters in 2023 initially targeting B2B (Business-to-Business) sectors, to show its commitment and support in providing sustainable solutions and promote cleaner transportation options for the community.

Government agencies, especially MIDA, provides valuable help and incentives to streamline business operations and foster long-term success in the region such as reduce financial burdens, ensure regulatory compliance and facilitate market entry. By leveraging MIDA’s support, companies can navigate regulatory landscapes more efficiently, access critical resources, and capitalise growth opportunities on the global stage.

For aspiring companies planning to do business in Malaysia, understanding local market dynamics and consumer preferences is essential for success. Investing in both local manufacturing and human capital capabilities, similar to MODENAS’ approach, can significantly enhance its market presence.