Perodua 2015 Performance Review – Sales Surpasses 200,000 Units

Article Sourced: Autoworld.com.my by Zachary Ho

Local automaker, Perodua, has achieved another milestone with over 213,300 vehicles sold in 2015 backed by the continued strong demand for its Axia, Myvi and Alza models.

“2015 was a very challenging year for us with the implementation of the Goods and Services Tax, the weakening Ringgit as well as the slump in oil prices having a big impact to the country’s economy,” Perodua President & CEO, Datuk (Dr) Aminar Rashid Salleh said.

“Because of these challenges, many consumers have decided to ‘buy down’ to a more affordable alternative such as the Axia, which accounted for 99,700 units or 46.7% of Perodua’s entire sales for 2015,” Aminar added. He further said that Perodua was fortunate as its products and services which include Myvi, Alza and Axia, offer the best value for the money for its customers.

“Based on our estimation of the total industry volume of 667,000 in 2015, we believe that our market share is around 32% and we would like to maintain that level of 32% this year with a sales target of 216,000,” Aminar said. However, it looks like cumulative market share for the 2 local car brands will still be below 50% this year as they face stiff competition from the foreign marques. It may bode well for consumers who have more choices but it will be challenging for local automakers like Perodua to keep up.

Nevertheless, Aminar sees the demand momentum for Perodua models to grow this year, assisted by strong sales and marketing efforts as well as further improving its customer experience through all its sales and service network. As factors such as rising living costs and lower consumer sentiments are expected to be prevalent in 2016, Perodua is still in a good market position due to the affordability of its product range.

Based on Perodua’s internal estimates, the total industry volume for 2016 would grow slightly to 670,000 with new product launches taken into account.

“As a result of the higher sales in 2015, Perodua has also seen the largest production of vehicles in our history with 228,500 produced, an increase of 16.3% from 196,400 produced in 2014,” he said. “We are very thankful for all the support that Malaysians have shown us despite the challenging economic situation and we will strive to serve you better in all of our touch-points,” Aminar added.

With the strengthening US Dollar and Japanese Yen (which Perodua pays its purchase of components in), profit margins continue to be stressed. However, this is partly mitigated by buying forward in anticipation of the strengthening foreign currencies. As a result, Perodua is able to maintain the selling price for now. Its increase in local vendor purchases will also mitigate any foreign exchange risks as well as contribute to lower vendor production costs which in turn will benefit Perodua.

Additionally, with the completion of the new PGMSB manufacturing facility, where the bulk of funds were spent (2013-2015: RM 2.8 billion), Perodua forecasts lower capital expenditures of RM370 million in 2016, likely for maintenance and upgrades.

Aminar also shared with us Perodua’s intention to better its JD Powers Customer Satisfaction Index ranking of 9th spot by improving its sales and after-sales services. Perodua’s after-sales business has broken new records with 1.96 million intakes for 2015, an increase of 2.3% from 1.92 million in 2014. “The increase is mainly due to further upgrading of existing service facilities for the comfort of our customers,” Aminar said. As of December 2015, Perodua has 181 sales and 190 service centres nationwide.

Parts and accessories revenue has also created history with revenue sales of RM 248 million for 2015, a 2% increase over 2014’s RM 244 million. To attract more existing Perodua owners whose cars are out of warranty to return to Perodua for genuine parts, Perodua is planning to introduce special deals and budget options.

As such, they expect a higher intake this year with 2 million vehicles patronising its service centres nationwide, while revenue from parts and accessories is expected to grow by 5% to RM 260.2 million. In a further development, Aminar announced that Perodua is planning a retail outlet for pre-owned Perodua vehicles.

“While we are thankful and happy for the results in 2015, Perodua needs to focus on our next transformation phase in order to be ready for the stiffer competition and market liberalisation,” he added.

With that, Aminar announced a reshuffling of key management staff in an effort to boost efficiency. Some of the notable moves include:

• Datuk Dr Nik Nazrul Thani as non-executive Chairman of Perodua Sales Sdn Bhd
• Dr Zahari Husin as Managing Director of Perodua Sales Sdn Bhd
• Mr Zainal Abidin Ahmad as Vice President of Perodua Auto Corporation Sdn Bhd
• Datuk Ahmad Suhaimi Hashim as President of Perodua Global Manufacturing Sdn Bhd (PGMSB)
• Mr T. Izutani as Vice President of PGMSB
• Mr Rozunan Che Pa as Director of Manufacturing for Perodua Manufacturing Sdn Bhd and Perodua Engine Manufacturing Sdn Bhd, 
• Mr T. Kurinami as Executive Director of Perusahaan Otomobil Kedua Sdn Bhd
• Mr Mohd Azman Hj Abdul Rashid as Chief Information Officer of Group Information and Communications Technology, Perusahaan Otomobil Kedua Sdn Bhd
• Mr Noor Azarul Amir Ishak as General Manager, Service Operations at Perodua Sales Sdn Bhd

Again Article source: http://autoworld.com.my/news/2016/01/19/perodua-2015-performance-review-sales-surpasses-200000-units/

OTOH Sales of premium cars accelerate

OTOH (ON THE OTHER HAND) Sales of Premium cars accelerate

SOURCE: CLICK ME...

PETALING JAYA: Positive consumer sentiment, strong purchasing power and minimal impact from Bank Negara's newly implemented responsible lending guidelines collectively helped boost sales of premium vehicles in February.


Prominent brands such as Mercedes Benz, BMW, Lexus, Volvo, Audi and Porsche registered marked sales increases in February versus the same month a year earlier.

“It is due to a combination of attractive sales and after-sales campaigns by manufacturers to clear 2011 manufactured cars and aggressive registration and delivery of orders,” said Frost & Sullivan Asia Pacific automotive and transportation practice principal consultant Rajaswaran Tharmalingam.

“Further, continuous novel efforts to increase sales by manufacturers and strong consumer sentiments made it a better month,” he added.

Malaysian Automotive Association (MAA) president Datuk Aishah Ahmad pointed out that Bank Negara's new lending guidelines, which came into effect on Jan 1, had little to no impact on buyers of premium vehicles.

“For this (premium) segment, even if the economy is affected, the impact would be little. Buyers from this segment have so much money that they can buy so many cars and getting their loans approved is not an issue,” she said after MAA's AGM on Friday.

Under the central bank's new lending guidelines, loans are now approved based on net income compared with gross income previously, in addition to which is the need for more documentation.

Aishah said the impact was more profound on the lower capacity passenger car segment.

“Some buyers from this segment may now need to combine their total income with their spouses just to qualify for a loan,” she added.

OSK Investment Research analyst Ahmad Maghfur Usman said sales of premium vehicles were buoyant in February on strong demand from new model line-ups introduced.

During the month under review, sales of Mercedes Benz vehicles increased to 466 units from 430 units in the previous corresponding period while BMW's sales grew to 383 units from 356 units a year earlier, according to statistics from the MAA.

In the same month, sales of Lexus vehicles more than doubled to 109 units from 52 units a year earlier while Volvo sold 95 units versus 55 units previously.

An industry observer said sales of Lexus was boosted by the demand for its CT200h hybrid, which has a 1.8-litre petrol engine and qualifies for the excise duty exemption that was announced under Budget 2011.

Audi more then doubled its sales to 115 units from 50 units a year earlier while Porsche increased its sales to 24 units from 16 units previously.

Rajaswaran said he expected a positive outlook for premium vehicle sales for the month of March.

“The outlook for premium cars in March would be encouraging and poised to increase, mainly driven by combination of on-going attractive sales and after-sales campaigns by manufacturers to clear remaining 2011 manufactured cars, a healthy order bank, new models appeal and the minimal impact of Bank Negara's responsible lending guidelines on premium consumers.”

Ahmad also said he was optimistic about premium vehicle sales in March.

“March will be better as business activities normalise,” he said.

The Star: News

Monday, June 27, 2011 8:39 AM

Demand for luxury cars remains strong

(Click title for source)

By EUGENE MAHALINGAM

PETALING JAYA: Demand for luxury vehicles in May continued to rise despite a decline in total industry volume (TIV) that month.

Sales of Volkswagen vehicles rose the most last month, jumping 325% to 455 units from 107 units a year earlier, according to data from the Malaysian Automotive Association (MAA).

For the five-month period ended May, sales of Volkswagen cars surged 341% to 2,057 units from 466 units a year earlier.

Within the luxury segment, sales of Mercedes-Benz vehicles was the highest in May at 541 units, which was a 19% increase from 455 units a year earlier.

During the period under review, Mercedes-Benz vehicle sales increased 13% to 2,278 units from 2,023 units in the previous corresponding period.

Sales of BMW vehicles meanwhile increased 38% to 443 units from 322 units a year earlier, while the German marque's five-month sales rose 30% to 2,029 units from 1,564 units in the previous corresponding period.

MAA president Datuk Aishah Ahmad said consumer sentiment for luxury cars was still strong, and that TIV, especially luxury makes, had been affected by the earthquake that hit Japan in March.

“The economy is still strong. Most of the luxury cars are from Europe and not affected by the Japanese tsunami. The demand (for luxury cars) is still there,” she said in a StarBiz report.

An analyst from a local bank-backed brokerage concurred.

“If not for the production disruption, TIV would not be affected and total vehicle sales in all segments would be registering good growth and not just the luxury segment.”

Total vehicle sales fell 9.5% in May to 46,045 units from 50,883 a year earlier due to a shortfall in production for the month of April.

This was a result of insufficient supply to cater to deliveries stemming from the impact of the earthquake and tsunami that hit Japan in March.

The drop in sales marked the biggest decline of the year since February when local vehicle sales fell to 40,387 units from 40,654 in January.

However, for the five-month period ended May, cumulative sales were still higher at 255,413 units from 247,110 in the previous corresponding period

Total vehicle production in May fell 20% to 38,909 units from 48,845 a year earlier.

Production for the five-month period fell 4.5% to 230,676 units from 241,658 in the previous corresponding period.

Analysts and industry observers are already revising downwards their TIV outlook for the year, in light of the disruption in vehicle production as a result of the Japanese disaster.

Earlier this year, MAA had forecast that TIV for 2011 would hit an all-time high of 618,000 units.

Total vehicle sales in Malaysia grew 13% to hit an all-time high of 605,156 units last year, surpassing the previous record of 552,316 units achieved in 2005.
 

Record 600,000 vehicles join the traffic

Record 600,000 vehicles join the traffic


BERNAMA/The Star Motoring: Wednesday, January 19, 2011 4:10 PM

PETALING JAYA:  Motor vehicle sales breached an all-time high of 605,156 units, up 12.7 per cent or 68,251 units last year vis-a-vis 536,905 units in 2009, said Malaysian Automotive Association (MAA) president Datuk Aishah Ahmad.

The 2010 Total Industry Volume (TIV) surpassed the 2009 record of 552,316 units achieved in 2005, she told reporters after releasing the 2010 production and sales figures and outlook for 2011.

She said the industry volume is expected to grow this year by 2.1 per cent or 1,438 units to 618,000 units from 605,156 units last year.

"I must say, bearing in mind that we have a population of 27 million people, and in terms of motorisation rate we have a ratio of every four person to one car which is the same as a developed country although we are still a developing nation.

"There will be a multiplier effect from the 10th Malaysia Plan and Economic Transformation Programme's projects which would likely give a further boost to the domestic economy and create greater demand for new vehicles," she said.

However, she predicted that sales would be flat in later years.

"Minimal growth is expected to happen for the next few years and I don't think a double-digit growth like last year will happen.

"The country is already very high in terms of car ownership and the forecast has taken into account the previous revamp of the repayment period five years ago.

"Finance companies have changed the repayment period from five years to nine years, and by 2011, consumers will still have four more years of their loan to pay for their five-year-old vehicle, and we have to take into account the financial standing of consumers whether they can afford to trade in and get a new car," she said.

Aishah said the association expects the TIV to grow by one per cent to 624,000 units in 2012, 2013 to grow by 1.1 per cent to 631,000 and subsequently 2014 to grow by 1.2 per cent to 639,000 units and 2015 with 1.3 per cent growth to 647,000 units.

Frost & Sullivan, in its annual automotive outlook briefing recently, was more optimistic than MAA, predicting a higher TIV of 623,000 units this year, driven by a moderate economic outlook and additional new vehicle models which would attract consumers.

 -Bernama / The Star Online.

SOURCE:
http://www.star-motoring.com/News/2011/Over-600,000-cars-sold,-that-s-a-record-high.aspx

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