Pero­dua ‘cau­tiously op­ti­mistic’ of bet­ter sales in Q4

The Star Malaysia - StarBiz - - News - By ZUNAIRA SAIEED zunaira@thes­

TOKYO: Perusa­haan Oto­mo­bil Ke­dua Sdn Bhd (Pero­dua) is aim­ing for stronger sales in the fourth quar­ter as there is a pos­si­bil­ity for the na­tional car­maker to un­veil a new model be­fore year-end.

Pero­dua pres­i­dent and chief ex­ec­u­tive of­fi­cer Datuk Dr Ami­nar Rashid Salleh said there are new ini­tia­tives in store, in­clud­ing launch­ing a new ve­hi­cle as well as ag­gres­sive cam­paigns to sell its ex­ist­ing car mod­els by the end of the year.

“We are cau­tiously op­ti­mistic of bet­ter sales in the fourth quar­ter due to new ini­tia­tives planned and we main­tain our sales tar­get for 2017,” he added.

Pero­dua is main­tain­ing its sales tar­get of 202,000 units this year.

For the first nine months ended Septem­ber 30, the com­pany’s sales climbed 0.5% to 151,600 units, from 150,600 units in the cor­re­spond­ing pe­riod last year.

How­ever, in the third quar­ter this year, the com­pany’s sales dipped 3% to 51,900 units, from the 53,500 units last year partly due to the strin­gent vet­ting process in higher pur­chase loan ap­provals.

Ac­cord­ing to Malaysian Au­to­mo­tive As­so­ci­a­tion data, the num­ber of ve­hi­cles reg­is­tered was down 20.8% in Septem­ber to 40,981 units, from 51,720 units in Au­gust this year due to a shorter work­ing month in Septem­ber as well as tighter loan ap­provals.

Com­ment­ing on the 3% drop in sales in the third quar­ter this year com­pared with last year, Ami­nar pointed out that this was due to the surge in sales during the third quar­ter of last year fol­low­ing the launch of the new Pero­dua Bezza.

“That im­pact has nor­malised now and our sales have ben­e­fited from the mod­els in pro­duc­tion,” said Ami­nar.

The Pero­dua Bezza was of­fi­cially launched on July 21 last year.

Mean­while, Ami­nar has noted that the chal­lenge the car­maker is fac­ing is the de­clin­ing trend in the con­ver­sion num­bers from book­ings to sales, adding that it stands at an av­er­age of 48% this year com­pared to 70% in the last two years.

“The big­gest chal­lenge is the loan ap­proval process for higher pur­chase ve­hi­cles. As much as 90% of our cus­tomers rely on loans, while the re­main­ing 10% use cash to buy ve­hi­cles,” he said.

On the other hand, its after-sales seg­ment per­for­mance rose 4.6% to 1.58 mil­lion ve­hi­cles from 1.51 mil­lion for the first nine months of this year due to the com­pany’s trans­for­ma­tion plan from man­u­fac­tur­ing to after-sales as well as an im­prove­ment in the body and paint busi­ness.

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