The headline doesn’t come as a surprise, despite the soft market conditions, as consumers have a tendency to ‘buy down’ in times of weak sentiment and tight credit. For the first 6 months of 2017, Perodua moved out 99,700 vehicles compared to 97,400 for the same period in 2016 (a 2.4% increase). The Axia (32,600) continues to be its biggest seller followed by Bezza (28,300) and Myvi (24,000).
And as expected, all its models are volume leaders in their respective segments. Perodua estimates it’s current market share to be 35.1% based on its estimate of total industry volume (TIV) of 284,200 in the first 6 months.
“Also based on our internal observation, the total industry volume has improved by 2.3% to 284,200 for the first half of 2017,” said Datuk (Dr) Aminar Rashid, Perodua President and CEO.
However, despite this improvement, Perodua remains cautiously optimistic as the tight lending guidelines is still seen as a great challenge. The company projects an annual sales target of 202,000 vehicles this year, down from last year’s figure of 207,100.
Nonetheless, Perodua will continue to offer attractive promotions to maintain its sales levels. It will also focus on improving after-sales to get more Perodua owners to return to its service centers after warranty ends, as another income stream. Its service centers have seen a 1.2% increase in vehicle intake in the first half of 2017 (1.02 million vs 1.01 million in 1H2016).
“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 more about our current promotions,” Aminar commented.
At the same time, the company has announced the establishment of a Pre-Owned Vehicles sales center that is expected to be launched in the 4th quarter, in the Klang Valley.
Also announced is the 12th anniversary celebration of the popular Myvi which will see the offer of up to RM 7,500 cash givebacks, and also a cash prize of up to RM 12,000.
On its export sales, Perodua shipped 1,854 vehicles to 6 countries (the largest being Indonesia for which Perodua assembles the Daihatsu Sirion (Myvi) for).
In terms of capital expenditure, Perodua is looking at a 15% increase this year to RM 557 million, as it continues to modernize its 2 assembly plants and expand outlets. Since one of them has already been modernized and assembling its current energy efficient vehicle (EEV) models, there’s speculation that this capex isn’t just for modernizing the older plant but for 2 new models, with one being new to its current line-up.