Perodua sees 2020 sales volume falling 15% short of target due to MCO

It’s ‘very difficult’ for Perodua to hit its initial sales target as sales were badly affected in March, April and May, says CEO


PERUSAHAAN Otomobil Kedua Sdn Bhd (Perodua) expects to sell about 210,000 cars this year, up to 15% less than its original aim of 240,000 units due to the impact of the Covid-19 pandemic.

Its CEO Datuk Zainal Abidin Ahmad (picture) said it would be “very difficult” for the carmaker to hit its initial sales target as sales were badly affected in March, April and May during the Movement Control Order (MCO).

However, booking numbers have improved and Perodua is catching up with the orders to make delivery.

“The booking acceptance coming from the customers has been very good. The waiting period now is two months.

“We should be able to deliver and try to catch up,” Zainal Abidin said at the CEO/Owner Growth Mindset Programme promotion, and CEO sharing session organised by the Malaysia Automotive Robotics and IoT Institute (MARii) in Cyberjaya yesterday.

He said Perodua is expected to produce 25,000 cars per month from August to December 2020, which is almost at its full capacity.

The sales tax exemptions for vehicles have significantly helped in boosting sales volume, he added. The government has granted a 100% sales tax waiver for locally assembled vehicles and 50% for imported units from June until December 2020, in a bid to revitalise the automotive market after it ground to a halt during the MCO.

Just 141 vehicles were sold in April this year compared to 49,935 units a year earlier and 22,478 units in March 2020 due to the MCO, data from the Malaysian Automotive Association (MAA) showed.

The volume rebounded to 22,960 units in May, although this was still 62% lower than the 60,760 vehicles sold last year, as consumers remained cautious and the Road Transport Department only started allowing new vehicle registrations from May 13 onwards.

In June, the number rose to 44,695 units, marking a 5% increase year-on-year. MAA attributed this to the sales tax exemption.

Perodua delivered 23,203 vehicles last month, up 9.2% from 21,250 units registered in June.

The carmaker said July was the best sales month thus far for the year, pushing its year-to-date (YTD) volume to 97,373 units.

It estimated its July and YTD market shares to stand at 40% and 42% respectively, spearheaded by the Myvi, Axia and Bezza.

Perodua said the three models are Malaysia’s top three best-selling vehicles for YTD with 29,313, 28,107 and 25,416 units sold respectively.