Perodua Takes Seventh Straight Malaysia Sales Title

Malaysian new-vehicle sales rose 4.7% to 627,753 units in 2012, breaking the yearly record of 605,156 set in 2009, the Malaysian Automotive Assn. announces.

Predicting another record this year, with sales forecast to rise 2% to 640,000 units, the association says it is reviving the annual Kuala Lumpur International Motor Show after a 3-year hiatus. The event is set for Nov. 15-24.

“(Last year) was beyond expectations and far better than what we had forecast,” association President Aishah Ahmad tells reporters.

The government’s Bernama news agency quotes Ahmad as saying the MAA took economic and environmental factors into account in its 2013 sales forecast.

Malaysia's gross domestic product is forecast at 5.6%, based on a survey conducted by the Malaysian Institute of Economic Research, while the central bank’s overnight policy rate is expected to remain stable in the first half of the year, lending confidence to consumer sentiment.

MAA data shows 2012 ended with December sales up 26% year-on-year to 60,470 units. The new-car segment grew 25.3% to 53,402 and the light-commercial-vehicle segment improved 32.5% to 7,068.

The association credits last month’s jump to aggressive promotional campaigns by auto makers prior to their financial year ending Dec. 31, the traditional end-of-year surge and Malaysia’s favorable market conditions.

For the full year, car sales rose 3.2% to 552,189 units, while CV deliveries climbed 16.2% to 75,564.

National auto maker Perodua took a 30.1% market share last year with a record 189,137 sales, comfortably ahead of domestic rival Proton with 22.5% based on 141,121 deliveries.

Toyota volume of 105,151 units was good for a 16.8% share, ahead of Nissan with 36,271 (5.8%) and Honda with 34,950 (5.6%).

The local industry built 569,620 vehicles in 2012, up 6.8% from prior-year’s 533,515. Car builds rose 4.4% to 509,621, while CV production jumped 32.6% to 59,999.

Perodua says its result was slightly above its target of 188,000 units. It has topped the sales chart for seven straight years after surpassing Proton, which had taken the title every year starting in 1985.

Bernama quotes Perodua Managing Director Aminar Rashid Salleh as saying the record was achieved despite the tight lending guidelines introduced by Bank Negara Malaysia.

Perodua received 248,500 bookings last year, he says, but the shortfall between bookings and actual sales arose because some customers could not secure loans under the stringent lending rules.

Perodua will spend MYR2.32 billion ($763 million) over the next four years to expand its production and sales operations. The investment includes MYR68 million ($22.4 million) to upgrade and modernize machinery, equipment and facilities at its Serendah plant and MYR54 million ($17.8 million) to acquire land and develop infrastructure for its sales and aftersales business.

The auto maker earlier announced plans to build a MYR790 million ($260 million) plant alongside its existing manufacturing facility in Rawang.

Proton plans to raise production to 500,000 units a year in the next five years as part of its aim to become a global company and reclaim its spot as Malaysia’s largest national auto maker.

Proton Chairman Khamil Jamil tells the Business Times that 20% of the output will be for export markets, focusing on Australia, China, Thailand and Indonesia. “Proton is going all-out because, after 27 years since its establishment, it only exports 20,000 cars a year to 55 countries. The volume does not justify the cost.”

Before the regional economic crisis in 1997, Proton was No.1 in the region. “Now we are No.2,” he says. “Even Toyota, for the first time ever, has breached (sales of) 100,000 units a year. If we don't do something, Proton can become No.3.”

BMW says its Malaysian operation exceeded benchmarks in all areas of its business in 2012, as its sales rose 13% to 6,988 units, the best result since it entered the market nine years ago.

“With new vehicles and activities lined up for 2013, our main aim will be to reinforce our position as the No.1 premium car maker here in the country,” CEO Gerhard Pils says in a statement.

Volkswagen’s 2012 Malaysia sales surged 77% to 13,000 units, and newly arrived Managing Director Zeno Kerschbaumber says VW is making steady progress toward becoming one of the country’s leading car brands.

“Besides achieving our sales target, the year (was) active for us as we introduced several new models in significant market segments, increased our dealer network (from 12 to 22), saw the introduction of the first locally assembled Volkswagen model, the Passat, all of which has created customer confidence and consideration for the brand,” he says in a statement.

Ahmad says the revived auto show will give Malaysia’s auto industry a chance to establish itself as a front-runner.

Already, 93% of the 323,000 sq.-ft. (30,000 sq.-m) of exhibition space has been booked by MAA members, and organizers expect 330,000 visitors.

Elsewhere, Bernama reports the government will unveil policies to make Malaysia a hub for energy-efficient vehicles in the first half of this year. International Trade and Industry Minister Mustapa Mohamed says the goal is to create a level playing field for both local and foreign auto makers.

“This is one of the segments that we think is important under the ongoing revised National Automotive Policy,” he says. “We have decided this is the segment that we need to open up in the near future.

“All the stakeholders in the automotive trade have agreed on two things – that we should make the production and marketing of EEVs the future focus of the industry and that we should seek to establish a leadership position in the region for this sub-sector.”