Perodua Exceeds Target for 1H 2019; Remains Cautious to Address Long Delivery Time

The first half of 2019 has been encouraging for Malaysia’s leading car brand, Perodua. CEO Dato’ Zainal Abidin Ahmad (pictured below, centre) announced at a press conference today that the company has sold 121,800 units in that period, 4% more than the same period last year. That is equivalent to a market share of 41.1%, a 0.7% improvement from the first half of 2018.

With that, Perodua is revising its 2019 sales target and increasing it by 4,000 units to 235,000 units, which the company forecasts to be 40% of the total market share for the year and a 2% increase from last year.

Even so, Dato’ Zainal said that the company is cautious in its sales target, citing the relatively long delivery time as a reason. At present, the average waiting time for the Myvi, Aruz and Bezza is about two months due to the low stock level, but the company hopes to increase its inventory level by year-end to achieve a “reasonable delivery time”.

To do so, Perodua has increased production at its plants to meet demand, both of which are presently running at 97% capacity.

Dato’ Zainal also highlighted that the company purchased RM2.7 billion worth in local parts in the first half of 2019, and expects to purchase a total of RM5.4 billion worth of local parts by year-end. This is part of the company’s efforts to develop local suppliers, which also extends to help them reach markets beyond Malaysia by introducing them to Daihatsu Motor Company in Japan.

For the remainder of 2019, there is no detail on any upcoming new model or facelift. Dato’ Zainal however confirms that there is no SUV forthcoming as it would be a new market segment for the company and more research would be required before any official entry.

He also implied that Perodua would unlikely enter the electric vehicle segment, citing that the company looks at environmental impact from “well-to-wheel”. He pointed out that if the energy source is largely coal (ie. which is what it is in Malaysia), then the electric vehicle might not be the most environmentally sound.

Addressing questions about a possible Perodua hybrid, Dato’ Zainal said, “Our strategy is to look to maximising fuel efficiency and minimising CO2 emissions, regardless of whether the vehicle is a hybrid or (has an) internal combustion engine.”