Perodua targets record sales this year


President and Chief Executive Officer Perodua, Datuk Zainal Abidin Ahmad delivering his speech during Perodua 2022 Outlook Media Conference today. Perodua expects to improve its market share to 40.6 per cent in 2022, with total estimated capex of RM1.33 billion. - Bernama

KUALA LUMPUR: Perusahaan Otomobil Kedua Sdn Bhd (Perodua) is targeting record sales of 247,800 units for 2022, as it expects the ongoing sales tax exemption and brighter economic prospects this year to spur strong demand for new cars.

President and chief executive officer Datuk Zainal Abidin Ahmad (pic) said the projected higher sales will also grow the national carmaker’s market share to an estimated 40.6% in 2022 from 37.4% last year.

“The sales tax exemption ends in June but we are hopeful that if it gets extended until the end of the year, we can sell more than 250,000 vehicles,” he said at a briefing yesterday.

“For now, we believe there is a 50:50 chance that the tax exemption will get extended and we will continue to engage the government on this.”

The vehicle sales tax exemption was announced in June 2020 under the short-term economic recovery plan or Penjana. Under the exemption, locally-assembled cars are fully exempted from the sales tax while for imported cars, the sales tax has been reduced from 10% to 5%.

The tax holiday was initially supposed to last until the end of 2020. However, it was extended to June 30, 2021; and then again until the end of the year.

Perodua sold 190,291 vehicles in 2021, which was 13.6% less than the 220,163 units it registered in 2020. Its best seller was the Myvi with 47,525 units sold; followed by the Axia (43,080 units), Bezza (42,698 units), Ativa (26,874 units), Aruz (15,313 units) and the Alza (14,828 units).Perodua sold 190,291 vehicles in 2021, which was 13.6% less than the 220,163 units it registered in 2020. Its best seller was the Myvi with 47,525 units sold; followed by the Axia (43,080 units), Bezza (42,698 units), Ativa (26,874 units), Aruz (15,313 units) and the Alza (14,828 units).

During the tabling of Budget 2022 in October last year, the government announced that the sales tax exemption would be extended one more time until June 30, 2022.

The multiple extensions were mainly due to the repeated lockdowns over the past two years, which disrupted business operations and prevented car buyers from being able to fully enjoy the benefits of the tax holiday.

On top of the sales tax exemption, Zainal Abidin said Perodua will be able to achieve its sales target in 2022 if there are no movement restrictions and business disruptions like last year.

“Our target is also premised on the assumption that nothing (bad) happens this year,” he said.

In tandem with the higher sales target, Perodua has also ramped up its production capacity by 37.5% to 265,900 units.

“Annual production will be higher than sales because we need to fill our yard with additional units to meet the demand.

“The higher production capacity will provide us with a buffer to reduce the waiting period.”

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Zainal Abidin also said the increase in production capacity would result in higher locally-sourced automotive parts by 41.5% to RM7.5bil, as compared to RM5.3bil purchased in 2021.

Separately Zainal Abidin said Perodua will be ramping up its capital expenditure (capex) to RM1.3bil this year, an amount that will also be a record high for the national carmaker.

He said the capex will go towards the development of a new Perodua model, plant upgrades, land infrastructure, research and development as well as digitialisation initiatives.

Zainal Abidin also said plans are in the pipeline for an electric vehicle (EV) initiative. “We will reveal our EV plans by this year,” he said.

As for the car company’s foreign sales projections, Zainal Abidin said Perodua’s export market outlook for the time being remains uncertain.

“Some of our export markets such as Sri Lanka are still closed and we’ve not been taking orders from Mauritius since their tourism industry has been badly affected by the pandemic.

“We’re looking to export to Singapore, Brunei and Indonesia this year but we believe the total will be less than 2,000 units. For now, our primary focus will be on the domestic market.”

Perodua sold 190,291 vehicles in 2021, which was 13.6% less than the 220,163 units it registered in 2020.

Its best seller was the Myvi with 47,525 units sold; followed by the Axia (43,080 units), Bezza (42,698 units), Ativa (26,874 units), Aruz (15,313 units) and the Alza (14,828 units).

Zainal Abidin said Perodua learned valuable lessons last year that will better prepare the car company for potential challenges ahead.

“Following the various movement restrictions and floods, we had to prepare our vendors with counter measures.

“We will also be expanding our 3S (sales, service and spare parts) dealerships to be able to serve our customers better.”

He added that Perodua has no intention to raise car prices in light of escalating raw material costs.

“We can still absorb the costs for now and will not pass it on to the consumers,” said Zainal Abidin.

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