PROTON Cars is now second behind Perodua in terms of July 2019 sales figures. This means that Honda and Toyota are third and fourth respectively and it is after 40 months (or March 2016), that PROTON has returned to second in total sales for Malaysia’s automotive market. The brand sold 8,590 vehicles in July which is a 16.5% market share which was estimated at 51,960 units in total.
The numbers have propped up PROTON’s overall market share for 2019 (to date) and it is now estimated to be 15%. Surprisingly, this upward trend in sales continued since the GST tax holiday which was implemented from June to August 2018 with a slight dip after that only. PROTON, like all other automotive brands, posted its best numbers for 2018 during that three month period. Somehow, most kept the discounts as it was the fourth quarter and the usual discounting kicked in making most keeping up the momentum.
Anyway, fate has smiled on PROTON as without the benefit of the tax holiday, PROTON’s sales have continued to show positive growth. In June 2019, PROTON managed a 23% increase in sales , and July, sales grew by a further 6% in July. For the year, total sales now stand at 52,269 units compared to 35,561 for 2018, which equates to a 47% growth in overall year-on-year sales.
“PROTON’s return to second place overall in the Malaysian automotive market has happened ahead of schedule. The growth in demand for our products show we are on track to meet our long term targets and for the rest of 2019, we intend to consolidate our position to finish the year ranked second for the first time in four years. With the launch of the updated 2019 Proton Saga set to take place shortly and our other product introductions in the pipeline, the Company is quietly confident of even better results in the future” said Dr Li Chunrong, Chief Executive Officer of PROTON.
In terms of the actual breakdown of numbers, the Proton X70 Premium and Executive variants continue to be the leader in their respective SUV segments with 1,932 units delivered in July and a total of 17,023 units for 2019.
The updated Proton Persona has done well since it was launched in April 2019. According to PROTON, sales have almost doubled over the same period in 2018. 2,720 units were delivered in July making the model the best-selling vehicle in the B-segment sedan market, overtaking Japanese rivals that traditionally dominate the segment. With 10,034 units delivered so far, sales are up by 3% year-on-year, a figure that is set to grow in the last 5 months of 2019.
The updated Proton Iriz has also experienced growth since its launch (at the same time as the Persona). 974 units were delivered in July and for the first seven months of the year, 3,035 units of PROTON’s B-segment hatchback have been sold. More impressively sales are up by 53% year-on- year, which is evidence customers approve of the improvements made to the updated car.
As for the Proton Saga, it managed 2,381 units in July for a year-to-date total of 17,722 units. Despite showing a decrease in sales compared to the same month in 2018, overall sales are still up by 14%, a remarkable achievement for a model due to be updated in August.
Somehow, demand has been consistent for the brand. It all stared with the most affordable C-segment SUV on the market, the X70, then the revamped Iriz, Person and the Exora. Most likely buoyed by the fact that consumer confidence was raised after the X70's launch as well as the super competitive prices and high equipment levels placed on their current line-up of cars.
We think that it boils down to brand perception and the all important pricing. The X70 was priced to strike right at the heart Honda, offering a larger sized C-Segment SUV for the price of a HR-V (The direct competitor in terms of size is the CR-V). The new Iriz and Persona also look better than before (which really helps) and they are also priced cheaper than before yet better equipped. It plays to the purses of Malaysians, who seem to actually care more about prices these days than mere brand.
Of course, you can see that it now has hurt Honda Malaysia a fair bit, being attacked from all angles - Not much from the top end (where European and other niche players sit) but from the side by Toyota (which have recently launched pretty good new cars like the new Vios Yaris and Camry) and now below by PROTON. Not a nice spot since the Japanese brand has not launched any totally new models in the past six months or so. I have said this in a previous article in terms of sales. Worth repeating as it is happening again. Honda basically needs new blood....but not the all-new Accord, as this may be a small bump upwards as D-segment sedans are not selling as strongly as before. Maybe Honda knows this and is trying to come up with some strategy.
Anyway, kudos to PROTON. They are currently playing the sales game well. The cars are better, the equipment inside them are also improved and most importantly, when there are uncertain economic times, people will always look for the best deals.
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