Perodua sticks to 2016 sales target

PETALING JAYA: Perusahaan Otomobil Kedua Sdn Bhd (Perodua) is maintaining its sales target of 216,000 units for 2016 as it sees a better second half of the year (2H16), led by sales of Bezza and Axia.
This is despite the Malaysian Automotive Association recent revision of the 2016 total industry volume forecast to 580,000 units from 650,000 units due to the volatility in the global economy and the soft consumer sentiment in 1H16.
“We’re cautiously positive under this (challenging) backdrop,” Perodua president and CEO Datuk Aminar Rashid Salleh said after giving the company’s performance review for 1H16 here yesterday.
Perodua, which sold 213,300 vehicles in 2015, aims to achieve sales of 118,600 units in 2H16 after it sold 97,400 units in the first six months so far. In 1H16, its sales volume fell 10.3% from 108,500 units in the same period last year.
Axia accounted for 52% of the total 1H16 registration, followed by Myvi (29%) and Alza (19%).
It also registered a lower conversion rate at 74.5% from booking to registration in 1H16 compared with 81.5% in 1H15.
“The remaining half of the year will still be challenging. We hope Bezza will spur back interest for people to purchase. Our positioning has been affordability, emphasising quality, good after-sales service and resale value. With all these as a package, people who still need to buy a car during this difficult time will look at our brand,” said Aminar Rashid.
The booking for its recently-launched Bezza reached 10,115 units yesterday morning, with 500 deliveries made since it was launched on July 21.
Perodua began mass production of the Bezza since June and have a ready stock of 7,000 units as of July 21. By July 31, it expects to have 9,000 units ready for delivery nationwide.
Despite the expected increase in sales for 2H16, Perodua is maintaining its production forecast of 216,000 vehicles for the year, having already planned its production expectation of the year, which includes the Bezza.
Of its 2016 capital expenditure allocation of RM370 million, about 46% or RM170 million has been utilised in 1H16. The remaining will be used for upgrading works for its plants and showrooms.
Aminar Rashid said export is also on the car maker’s agenda but noted that it is still learning the ropes. “The Bezza has been planned and designed to meet global standards. As of now, we would like to focus our resources for the domestic market,” he added.