Perodua is still playing cautiously even though they've had an amazing first half of 2018 in terms of sales results. The compact car maker is preparing to face many challenges in the second half (2H18) especially from increased demand currently due to the GST removal and with the end of the zero GST rebates together with the reintroduction of the SST in September 2018. However the company states that it is still maintaining its sales target of 209,000 units by end-2018.
Perodua has reported that on a year to date basis, Perodua sold 117,100 vehicles for the first 6 months of 2018. This is 17.5% up on the 99,700 units sold in the same period last year. Against a 289,700-unit 1H18 total industry volume (TIV), Perodua took 40.4% market share, also a half-year record. This means that out of 10 vehicles sold, 4 are from Perodua. Quite an impressive winning streak in my opinion.
Perodua President and Chief Executive Officer Datuk (Dr) Aminar Rashid Salleh (photo above - middle) said that Perodua is also maintaining its production target of slightly over 215,300 vehicles this year which is a 7.5% increase compared with 200,100 vehicles made last year.
Datuk (Dr) Aminar said “Due to the increase in sales, Perodua has also increased its vehicle production to 109,000 units between January and June 2018 which is an increase of 10% compared with 99,000 units in the same period last year,”
He also mentioned that Perodua purchased some RM2.28 billion worth of parts from vendors for the first six months of this year, which is a reduction from RM2.33 billion in the same period last year.
“The decrease in the amount is due to forex rate savings enjoyed in the first half of the year despite the increase in volume,” Datuk (Dr) Aminar said.
The 117,100 Perodua cars registered during the 1st half of 2018 comprised 46,860 Myvis, 33,870 Axias, 23,555 Bezzas and 12,815 Alzas. This has enabled Perodua to keep the top spots for all four models in their respective segments.
Perodua states that the demand for the Myvi as well as for our other models in the first quarter while towards the end of the second quarter we saw a surge in sales due to the zero-rated Goods and Services Tax (GST).
The new Myvi continues to be Perodua’s most popular model – since its November launch, over 65,000 have been registered out of over 115,000 bookings collected.
Some facts and figures 1H 2018 vs 1H 2017- Perodua closed 1H17 with 35% of a 284,500-unit TIV. Its 1H18 monthly market share breakdown was 39.7% for January, 42.2% February, 41.5% March, 42.3% April, 51% May and 31% June. The June dip was due to an overall market sales spike brought on by the zero-rated GST.
“Our sales peaked in May at almost 22,000 units. However, we do not foresee this momentum continuing in the subsequent quarters of the year. While engagement with the government is on-going, we are still unclear on the full mechanism of the impending Sales and Service Tax (SST). On the assumption that there will be an increase in vehicle prices from September onwards; we foresee that the public will go through a period of adjustment hence resulting in less demand for a certain duration.” said Datuk (Dr) Aminar.
“Perhaps the impact would be up until December 2018 where, typically, most players would give good offers to reduce their carry-over stock into the following year,” Datuk (Dr) Aminar added.
On bookings, Perodua received over 185,000 orders in 1H18, a 24% boost over 1H17 and another half-year record. In June alone orders surpassed 40,000 due to the zero GST rebate, and Perodua is working overtime to meet the demand
Perodua have stated that apart from a few units of the Alza, they expect all orders made this month to be fulfilled only from 1 September onwards.
"We sincerely apologise for any inconvenience caused but we believe we still offer the best value in the market at present,” Datuk (Dr) Aminar added on the backlog of orders.
Perodua Prepares to Service 2 Million over Cars - Sell Many Cars, Service Many Cars.
Perodua’s after sales service intakes at its 179 service centres nationwide saw a 6% growth from 1.026 million vehicles in 1H17 to 1.083 million in 1H18 and in preparation for a record 2.14 million service intakes expected this year, Perodua aims to further improve its standards, skills and knowledge of its after-sales staff nationwide through its National Technical Skill Contest.
When you sell as many cars are Perodua has, there has to be preparedness to service them all. So contests like the National Technical Skill Contest helps prepare technical staff better and rewards them by recognition at the same time. First held in 1997, the Perodua National Technical Skill Contest puts service advisors, foremen, mechanics, and for the first time this year, Body & Paint service advisors, through a series of tough customer-related scenarios.
“Participants are judged on how correctly, thoroughly, quickly and efficiently they solve the issues given, and not just from a technical perspective – they also have to demonstrate a strong focus on the all-important Customer Satisfaction,” said Perodua Sales Sdn Bhd Managing Director Dato’ Dr Zahari Husin.
This year’s contest was among the largest Perodua has ever conducted, with more than 2,000 after-sales staff across the country, from dealers as well as branches, taking part in the preliminary round recently in February 2018.
The national finals was held on 19 July saw mechanics Nur Adilin Mohd Yusuf (KK1 branch) and Muhd Izuan Kamarul Baharin (Nagoya Automobile), foremen Jamaluddin Ja’asa (Seremban branch) and Felix Chee Tuin (Posh Auto), service advisors Noor Faziha Md Anas (Ipoh2 branch) and Siti Fatimah Abu Samah (Roda Juara), as well as Body & Paint service advisor Arthur James (KK1 branch) emerge as the winners.
“The victors represent the best Perodua has to offer in the country in terms of service, and are examples to us all. Their technical expertise, customer focus and problem-solving skills will be cascaded throughout our after-sales divisions for our customers’ benefit,” said Dato’ Dr Zahari.
“After-sales plays an extremely crucial role in our quest to satisfy and delight our customers. Via healthy competition, the Perodua National Technical Skill Contest serves to exercise and ensure our service capabilities remain up to standard, competitive and relevant to the ever-changing needs and wants of the customer. People First in Perodua’s slogan refers to both our employees and customers. We will never cease to develop and improve the capabilities of our employees so that they can better serve our customers and retain their trust,” he added.
This is Perodua's secret to success. You sell 200,000 cars a year you must be prepared to service them all. There has to be enough service centres and enough technical staff in these centres so that customers and their cars are dealt with as quickly as possible and with a certain level of care also. 2.1 million cars yearly is a huge task and they seem to be up to it.
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