Perodua to defend market share with model line-up
Perusahaan Otomobil Kedua Sdn Bhd (Perodua) is aiming for a 2% growth in vehicle sales to 209,000 units this year and intends to defend its 35% market share, banking on the continued strong demand for its model line-up.
Last year, Perodua had a total of 204,900 vehicles registered on the back of a total industry volume (TIV) of 576,000 units.
President and CEO Datuk Aminar Rashid Salleh said the momentum carried by Bezza in the earlier part of 2017 and continued demand for its other models had helped make Perodua the top-selling carmaker in Malaysia for the 12th year running.
“Based on our internal calculations, we expect the total industry volume to increase to 590,000 units in 2018, which would see our market share sustained at slightly above 35%,” he said at a briefing on Perodua 2017 full-year review.
Aminar said the performance in 2017 was slightly lower than the 207,100 units recorded in the previous year due to challenging market conditions, intense competition and strict hire-purchase guidelines.
“We expect the numbers to climb back this year due to favourable economic conditions as well as the continued momentum for the new Myvi,” he said, adding that the Axia and Myvi models are expected to be the main drivers, followed by the Bezza and Alza.
The 204,900 vehicles registered in 2017 was above its target of 202,000.
The new Myvi garnered some 36,000 bookings since orders opened last November, with over 11,000 units delivered to date.
Aminar expects more registrations moving forward, as most customers who placed orders last year wanted their cars delivered this year.
“Of the 36,000 Myvi bookings received, 85% were the 1.5 variants, with the 1.3 variants making up the remaining 15%.
“On the other hand, we had wrongly targeted a breakdown of 55% for 1.5 variants and 45% for 1.3 variants instead.
“We are working hard to bring down the delivery period and our manufacturing arm, Perodua Manufacturing Sdn Bhd, is working overtime to fulfil the outstanding Myvi orders,” said Aminar.
The increase in demand this year will also have a positive impact on the company’s vehicle production, with an estimated 215,334 units to be produced at both of Perodua’s manufacturing facilities this year compared to 200,146 units in 2017.
Perodua Manufacturing, which has been in operations for more than 20 years, produces the new Myvi and Alza models.
Meanwhile, the newer plant, Perodua Global Manufacturing Sdn Bhd, manufactures the Bezza and Axia models. Both plants are now at a 65% to 70% utilisation rate.
Perodua is in the midst of upgrading the facilities and equipment in Perodua Manufacturing as part of its plant modernisation under Transformation 2.0 initiatives.
The automation rate of Perodua Global Manufacturing stands at 75%, while Perodua Manufacturing’s automation rate is now being upgraded from the initial 35%.
Perodua has 10,200 employees, of which 70% are based in the manufacturing plants.
As for exports, the carmaker intends to grow the parts and accessories segment, on top of the complete built-up (CBU) segment, which has seen a 20% year-on-year dip to 3,766 units last year.
The main challenge for exports this year would be forex, as Perodua’s exports are denominated in US dollars.
“At this point, the parts and accessories segment looks to be less challenging as compared to CBU. That is why we are channelling some resources into that segment to see if there is opportunity for us to grow it.
“The export space is still a learning curve for us, with Daihatsu’s support and expertise,” said Aminar.