STIFF COMPETITION: Analysts say Proton needs ‘more spectacular’ product to dislodge Perodua
Proton may have staged a fightback but analysts feel it needs something “more spectacular” to dislodge Perodua from the top of car sales chart.
The launch of the lower-priced S-Series models (across MyVi, Viva and Alza) has bolstered Perusahaan Otomobil Kedua Sdn Bhd (Perodua)’s position.
This is despite the gallant response from Proton Holdings Bhd, which unveiled its competitively-priced Saga SV in mid-June.
The launch of Suprima S hatchback last week is the latest effort by Proton to help regain the number one position it lost to Perodua in 2006.
The launch of the lower-priced S-Series models (across MyVi, Viva and Alza) has bolstered Perusahaan Otomobil Kedua Sdn Bhd (Perodua)’s position.
This is despite the gallant response from Proton Holdings Bhd, which unveiled its competitively-priced Saga SV in mid-June.
The launch of Suprima S hatchback last week is the latest effort by Proton to help regain the number one position it lost to Perodua in 2006.
While Suprima S can be a “game changing” product, analysts said it can only help increase Proton’s volume but not really dent Perodua’s sales.
“Proton needs a more spectacular product. Perhaps, its new small car due to be launched by the first half of next year can be that,” one of the analysts said.
Proton executive chairman Tan Sri Mohd Khamil Jamil recently reaffirmed that the carmaker can regain the top spot in the next two years.
He said the new compact car will be the starting point for a fresh range of vehicles by Proton.
Halfway through 2013, Perodua has kept the brand leadership, thanks to its 96,873-unit sales and 30.9 per cent share of the total industry volume (TIV).
Proton’s share stood at 20.7 per cent after it sold 64,782 units in the January-June period, as TIV rose four per cent year-on-year to 313,488 units.
Among other big players, Toyota fell to 14 per cent with 43,747 units sold. Nissan improved massively from a 5.8 per cent share over full-year 2012 to 8.4 per cent halfway through 2013 and
Honda rose from 5.6 per cent to seven per cent.
Last month, Proton improved its market share to about 25 per cent after selling 16,000 units as the market reached a level unseen in four years.
At 68,431 registrations, total July sales went up an impressive 15 per cent over July 2012 to record the strongest monthly result since 2010.
However, Perodua also broke its own record by selling about 19,200 units in July, amid higher sales orders of 27,600 units.
Until the launch of Proton’s new compact car, the analyst said Perodua is not expected to play second fiddle to anyone anytime soon if it continues to offer quality cars at the “cheapest”
prices.
He said a new Perodua plant to be opened next year should ensure its vehicles remain of high quality and affordable.
Perodua chairman Tan Sri Asmat Kamaludin on Saturday said it is banking on a RM2.3 billion investment over the next four years to “change and improve the company’s operations from the aspect of production, sales and after-sales service”.
A big portion of the money is being invested in a new factory which, according to Asmat, will help Perodua “drastically improve in terms of managing costs and quality”.
“Proton needs a more spectacular product. Perhaps, its new small car due to be launched by the first half of next year can be that,” one of the analysts said.
Proton executive chairman Tan Sri Mohd Khamil Jamil recently reaffirmed that the carmaker can regain the top spot in the next two years.
He said the new compact car will be the starting point for a fresh range of vehicles by Proton.
Halfway through 2013, Perodua has kept the brand leadership, thanks to its 96,873-unit sales and 30.9 per cent share of the total industry volume (TIV).
Proton’s share stood at 20.7 per cent after it sold 64,782 units in the January-June period, as TIV rose four per cent year-on-year to 313,488 units.
Among other big players, Toyota fell to 14 per cent with 43,747 units sold. Nissan improved massively from a 5.8 per cent share over full-year 2012 to 8.4 per cent halfway through 2013 and
Honda rose from 5.6 per cent to seven per cent.
Last month, Proton improved its market share to about 25 per cent after selling 16,000 units as the market reached a level unseen in four years.
At 68,431 registrations, total July sales went up an impressive 15 per cent over July 2012 to record the strongest monthly result since 2010.
However, Perodua also broke its own record by selling about 19,200 units in July, amid higher sales orders of 27,600 units.
Until the launch of Proton’s new compact car, the analyst said Perodua is not expected to play second fiddle to anyone anytime soon if it continues to offer quality cars at the “cheapest”
prices.
He said a new Perodua plant to be opened next year should ensure its vehicles remain of high quality and affordable.
Perodua chairman Tan Sri Asmat Kamaludin on Saturday said it is banking on a RM2.3 billion investment over the next four years to “change and improve the company’s operations from the aspect of production, sales and after-sales service”.
A big portion of the money is being invested in a new factory which, according to Asmat, will help Perodua “drastically improve in terms of managing costs and quality”.
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