assembled at the Oriental Assemblers plant in Tampoi, Johor, while Honda motorcycles were built at the Boon Siew Honda Assembly plant in Butterworth, Penang. Both plants had produced Honda models since 1969. By the late 1990s, Honda's principles in Japan had sought to become more directly involved in the Malaysian market. The decision was made in anticipation of the impending AFTA implementation in the early 2000s, a period in which many foreign car companies had increased their market presence in Malaysia. Additionally, various complications between Honda and the Oriental Group had also catalysed Honda's decision to establish a direct presence in the Malaysian market. Under the DRB-Oriental-Honda joint venture, Oriental Holdings would concentrate on the marketing and sales of Honda vehicles, while Honda would handle assembly operations. The DOH joint venture only encompassed Honda passenger vehicles, while Honda motorcycle operations remained unchanged. Additionally, Honda had decided on the construction of an all-new assembly plant in Pegoh, Malacca, which would take over Honda assembly operations from Oriental Assemblers. Construction of the new plant commenced in August 2001, and was completed in November 2002. The Pegoh plant was built at the cost of RM180 million, with an initial capacity of 20,000 units annually. The earliest second generation Honda CR-V models rolled out of the Pegoh plant in December 2002. In addition to vehicle assembly, the Pegoh plant also manufactures constant velocity joints for both domestic and export markets. The plant produced its 100,000th car, a Honda Civic in November 2007. In November 2013, Honda Malaysia established a second vehicle assembly line at the Pegoh plant. The second line was built at the cost of RM382 million, and doubled annual production capacity from 50,000 to 100,000 units annually. Honda Malaysia's second line also became the first outside Japan to feature Honda's Smart Welding Machine technology. Honda Malaysia's production, sales and market share grew significantly in the 2010s. In 2015, Honda surpassed arch-rival Toyota as the best-selling foreign-badged car company in Malaysia. The following year, Honda surpassed Proton to place second overall in the Malaysian market. Honda Malaysia currently assembles seven different models, the highest among any Japanese-badged car company in Malaysia. HM also assembles hybrid variants of the Jazz and City respectively. Inokom Inokom Corporation operates an assembly plant in Kulim with a combined maximum annual capacity of 30,000 units. Inokom is the licensed contract assembler for Hyundai, BMW and Mazda passenger vehicles