Perodua sets new sales target as it ramps up production

The automaker aims to produce 265,900 vehicles this year as the company pushes for a higher market share 

by NURUL SUHAIDI / Pic by MUHD AMIN NAHARUL

PERUSAHAAN Otomobil Kedua Sdn Bhd (Perodua) is preparing for a recovery in demand with a higher volume production target and aim to increase its market share to 40.6% this year. 

Perodua president and CEO Datuk Zainal Abidin Ahmad said the automaker expects to produce 265,900 vehicles in 2022 which is 37.5% higher compared to the 193,400 vehicles it produced in 2021 as the company pushes for a higher market share. 

“This is the highest production volume target we have set and we have various strategies to support the target. 

“Perodua expects to improve market share to 40.6% from 37.4% in 2021 and register some 247,800 vehicles against an estimated 610,000 total industry volume (TIV),” he said in a briefing in Kuala Lumpur yesterday 

He added that the 610,000 TIV forecast is Perodua’s internal projection as it believes the market demand can surpass the 600,000 TIV forecast by the Malaysia Automotive Association for the year. 

“Apart from the volume increase, Perodua’s key focus this year is on solidifying our vendor and dealer capabilities; strengthening IT networking; communication infrastructure; environmental, social and government (ESG) development; and prioritising staff welfare,” he said at Perodua’s 2022 outlook media conference. 

Perodua recorded a sluggish performance in 2021 due to supply chain shortages, while its vendors were affected by Covid-19 lockdowns and flooding as well as cost pressures due to the increase in raw material prices, which led to stagnant TIV growth. 

Zainal said Perodua has taken a proactive counter measure and various initiatives to support its vendors and stabilise the automotive ecosystem through operational improvements, creating an online system to facilitate sales during Movement Control Orders and a Flood Assist Programme. 

He added that the company, which holds the largest market share in Malaysia, has received almost 2,103 flood hit vehicles cases out of which 366 vehicles have been repaired and returned to the respective owners. 

“Learning from what happened last year, we have to ensure the supply chain and dealers improve and remain resilient. With strong support and guidance from us, our suppliers and vendors should be able to face any challenges this year,” Zainal added. 

Zainal added that while demand for vehicles remains good, he hopes the government will extend the sales tax exemption beyond June 30, as it will help in the recovery of the automotive industry and is an incentive for the consumer to purchase new cars. 

“With the extension, we are optimistic the yearly sales target can go beyond, given there is no major production disruption to the industry again,” he said. 

Perodua is aiming to lead in research and development (R&D), and is set to invest heavily to expand and enhance its R&D capabilities. 

This includes strengthening its testing facilities, test course expansion, product development and engineering design, styling machine and equipment, and adopting augmented reality and connected initiatives. 

To date, its total investments for R&D and other focus activities have amounted to RM1.4 billion. 

“As part of our ESG initiative, we will enhance our focus on the plant improvement, carbon neutral initiatives and reinforcing the existing Perodua group ESG policy,” Zainal added. 

Perodua sold 190,291 vehicles in 2021, 13.6% lower than the 220,163 vehicles registered in 2020. For 2021, demand remained strong for all its models with Myvi leading sales with 47,525 units sold followed by Axia (43,080 units), Bezza (42,698 units), Ativa (26,847 units), Aruz (15,313 units) and Alza (14,828 units). 

“We are aiming quite high this year, and we need to ensure all the vendors, partners and ecosystem are ready to embrace the challenges for this year and beyond,” he concluded.