Juara Production Not Being Halted

Responding to a report in yesterday’s Business Times which said that production of the Proton Juara had been halted due to poor sales, Proton has issued a statement to clarify that it has not stopped production but admits that “production has been brought down as there is already sufficient stock to meet the current demand”. The statement further adds that there is no plan to completely stop production of the Juara and that Proton “firmly believes in the market potential of its mini-MPV”.

Production of the Juara, which is adapted from the Mitsubishi Town Box, began late last year and by the time of the launch in July, some 1,500 units were in stock. Initial response by the public was good in the first couple of months but dropped steeply in October. To date, less than 1,000 units have been sold by Proton Edar which is the only retail channel (EON does not sell the Juara). Up till the end of September, 3,057 units had been assembled in total, so there remains over 2,000 units still waiting to be sold.

At the launch in KLCC in July, Proton Edar CEO said that the company forecast between 5,000 and 6,000 units would be sold during 2001. However, in the latest statement from Proton, the 950 units sold so far are said to be “in-line with PROTON’s projections, given that it is a new entry into a niche market”.

Explaining that the mini-MPV concept is very popular in Japan and Europe, Proton says that there may not be acceptance of the concept among Malaysians yet. “The concept introduced by the Juara is totally new to Malaysia… it is expected that it will take some time for the Malaysian public to get used to the innovative mini-MPV’s concept, styling and features,” the statement says.

“As a mini-MPV, the Juara has created a new niche market in Malaysia which is untapped and has yet to be developed. The Juara is aimed at catering to certain specific lifestyles in Malaysia and as such, is in a niche market where sales volumes are relatively small compared to the passenger car market”, the statement adds.

Meanwhile, Proton Edar Sdn Bhd, is embarking on several programmes to promote the Juara through sales carnivals, test drives, owners get-together functions and other activities.