Friday, July 14, 2017
Perodua records 99,700 vehicles sold in First Half of 2017 - Looks to be on target to achieve 202,000 sales this year
Perusahaan Otomobil Kedua Sdn Bhd or better known as Perodua sold 99,700 vehicles in the first six months of 2017, an increase of 2.4% compared to the same period last year of 97,400 units; with the PeroduaAxia as the number one model sold for the year so far. All Perodua models were number one in their respective segments with the Axia selling 32,600 units, followed by the Bezza at 28,300 units, Myvi 24,000 units and Alza with 14,700 units. They are still optimistic of achieving our initial sales target of 202,000 this year.
On after sales, Perodua saw 1.02 million vehicles coming into its service centre for the first six months of 2017, an increase of 1.2% from 1.01 million intakes for the same period of 2016. Meanwhile on exports, Perodua shipped 1,854 vehicles to 6 countries for the first six months of 2017.
On production, Perodua produced 96,600 vehicles for the first half of the year and expect to produce 197,000 by year end. The reason why the production figures do not tally with their sales target is because there is a carry forward in terms of production from 2016 that will contribute to the overall sales figure for this year.
Aside from the above facts and figures, Perodua also states that whilst their performance was strong, their sales are somewhat affected by the rate of loan approvals. The company is still in talks with financial institutions on loan approval ratings and have actually instructed their sales personnel to actually look through their customer's documents before actually taking a deposit. Sometimes this simple thing of taking a deposit from a person that is unable to actually take a loan is an issue. There other issue is the fact that national car companies are facing another issue where there are tighter approval controls for them compared to some other companies. However, Perodua has mentioned that they do not need to set up their own financial services like some foreign brands here in Malaysia.
As for exports, the company is also looking at ways to improve profit margins from exports as whilst their numbers make them number one here, their production costs still need to be improved to make exports truly profitable.
This year, there is a Capital Expenditure of 51% more than previously for the modernisation of their original plant. This is due to added automation (robots), a more environmentally efficient set up and I believe it is to facilitate the production of the upcoming new models - most likely the Myvi and Alza MPV replacements as their next generation models are likely to be out within the next year or so. They are also considering a SUV, a category which is on the rise. Perodua used to have the Kembara and then the Nautica, but not one at this moment.
The company is going places. This is the only private limited (Sdn Bhd) car manufacturer in Malaysia that comes up with a performance report like one of those larger European companies. They may have public listed holding companies, but what they are doing is quite unique.
More details in the Press Release below.
Perodua President & CEO, YBhg Datuk (Dr) Aminar Rashid Salleh during his presentation on Perodua 1st Half 2017 Performance Review and its future plan.
PRESS RELEASEPerodua on target to achieve 202,000 sales this year, records 99,700 vehicles sold in 1H2017
Kuala Lumpur, 14 July: Perodua sold 99,700 vehicles in the first six months of 2017, an increase of 2.4% compared to the same period last year of 97,400 units; with the PeroduaAxia as the number one model sold for the year so far.
“Based on our internal estimation, the total industry volume (TIV) from January to June this year would reach 284,200 vehicles, which means that Perodua’s market share will be around 35.1% so far this year,” Perodua’s President and Chief Executive Officer Datuk (Dr) Aminar Rashid Salleh said.
He said that during the first six months of the year, all Perodua models were number one in their respective segments with the Axia selling 32,600 units, followed by the Bezza at 28,300 units, Myvi 24,000 units and Alza with 14,700 units.
“Also based on our internal observation, the total industry volume has improved by 2.3% to 284,200 for the first half of 2017 compared to 275,500 vehicles in the same period of 2016,” he said.
Aminar said that the increase in sales for the first half of the year was due to aggressive sales campaigns initiated by almost all automotive players as well as new models introduced in the market during the time period. In addition most auto players were also clearing the carry over 2016 stocks with attractive discounts and over trade.
“Despite the improvement in sales, we foresee that the tighter lending guideline is still by far our greatest challenge to overcome as most of our customers are first time buyers,” he said.
Aminar said that for this year, Perodua will focus on its current model line-up by offering attractive promotions for the consumers.
He added the initiatives and plans to improve on Perodua’s after sales will be hasten with the focus to further improve on its customer satisfaction and to deliver the best Perodua experience at every touch point.
“We are encouraged by the support shown to us by the general public; for the immediate future, we welcome the public to visit our showrooms to know about our current promotions.”
“This include our on-going Raya Celebrations ‘Salam Syawal’, which offers amazing offers on selected models as well as Perodua’s celebration of the Myvi’s12thanniversary,” Aminar said.
He said that the Perodua is also initiating a special campaign for the Myvi which see cash givebacks of up to RM7,500in celebration of the model’s popularity with Malaysian drivers.
“We welcome everyone to visit the most convenient Perodua Sales showroom to see the amazing deals await you. Also, we invite the public to take part in our Myvi 12-year anniversary which offers a cash prize of up to RM12,000,” Perodua Sales SdnBhd, Managing Director, Dato’ Dr.ZahariHusin said.
“Please visit our sales and service outlets as well as our official social media channels to find out more,” Zahari said.
On the full year sales outlook, Aminar said: “we are cautiously optimistic of achieving our initial sales target of 202,000 this year.”
In 2016, Perodua sold 207,100 vehicles.
On after sales, Perodua saw 1.02 million vehicles coming into its service centre for the first six months of 2017, an increase of 1.2% from 1.01 millionintakes for the same period of 2016.
Meanwhile on exports, Peroduashipped 1,854 vehicles to 6 countries for the first six months of 2017.
“The recent introduction of the Bezza in Mauritius and Sri Lanka has been well received with the model selling 8unitsand 79 units respectively,” Aminar said.
On production, Perodua produced 96,600 vehicles for the first half of the year and expect to produce 197,000 by year end.