Honda Malaysia completes RM14 million solar power project at Melaka plant, cuts CO2 emissions by 10%

Honda Malaysia has officially completed its first solar power installation project at its Melaka manufacturing plant, marking another step towards the company's long-term sustainability goals and Honda's global target of achieving carbon neutrality by 2050.

The project, which represents an investment of approximately RM 14 million, was officially commemorated at the company's Alor Gajah plant in Melaka in a ceremony officiated by Melaka Chief Minister Datuk Seri Utama Ab Rauf Yusoh.

A total of around 8,960 solar panels have been installed across the factory rooftops, delivering a combined generation capacity of more than 5.6 MW. Honda Malaysia says the system is capable of producing approximately 7,042 MWh of renewable electricity annually, enough to reduce the plant's carbon dioxide (CO2) emissions by around 4,584 tonnes per year, equivalent to roughly 10% of its total annual emissions.

Beyond solar generation, the Melaka plant has also been equipped with a Battery Energy Storage System (BESS), allowing excess electricity generated during the day to be stored for later use. According to Honda Malaysia, it is among the first industrial electricity consumers in Malaysia to implement such a system, helping improve renewable energy utilisation while ensuring a more stable power supply for manufacturing operations.

The company also announced that it has obtained the Climate and Sustainability Industry Readiness Index (COSIRI) certification, achieving a 3.07-star rating, reflecting its progress in implementing environmental, social and governance (ESG) practices across its operations.

Honda Malaysia's sustainability efforts also extend beyond its manufacturing facilities. The company highlighted the continued expansion of its e hybrid model lineup as part of its strategy to reduce vehicle emissions, while its dealer network has also adopted environmentally friendly initiatives such as rainwater harvesting systems and proper battery disposal programmes.

Honda Malaysia Managing Director and CEO Narushi Yazaki said the completion of the solar project marks an important milestone in the company's sustainability journey.

He added that the company will continue expanding its renewable energy initiatives, with a second solar power installation planned for its Parts Supply Warehouse in Bukit Jelutong, Shah Alam in 2027.

Honda Malaysia also acknowledged the support of both the Melaka state government and the Malaysian government in making the project possible, including incentives under the Green Investment Tax Allowance (GITA).

The automaker says the latest investment reinforces its commitment to sustainable manufacturing while supporting Malaysia's broader renewable energy ambitions, with further efforts planned to improve operational efficiency and reduce the environmental impact of its manufacturing operations.