While its sales have continued to recover, Proton’s first quarter of 2022 saw lower than usual volumes as a result of the floods in December which affected some vendors, as well as disrupted logistics. Also contributing to the lower numbers was the global microchip shortage; just one small item being unavailable means a vehicle cannot be completed.
In the final month of the quarter, Proton sold 13,028 vehicles (inclusive of export sales), an increase of 41.2% from the volume achieved in February. The volume is estimated to account for a 19% market share. Added to the January and February sales volumes, the total volume for the first quarter of 2022 was 26,706 units, which Proton estimates will be a 17.5% share of the market.
This would be good enough to place the brand second overall table, despite a reduction in sales of 18.6% and also a 5.7% contraction in market share compared to the same period in 2021.
New milestones
While total sales for March were down by 13% compared to the same month in 2021, Proton still had some highlights worth noting. Sales of the Saga, a model that was severely affected in January, reached 6,422 units in March, which was its highest volume since November 2013. According to Proton, this made it the sales leader among A-segment sedans as well as the best-selling A-segment model overall.
The Saga’s sales numbers were helped by a growth in export sales. With a total of 794 units (various models) exported in March, the company saw its highest export sales figure in 108 months. Pakistan was the biggest export market, accounting for 690 units, while overall export volume in the quarter totalled 1,117 units. This was an increase of 175% over the same quarter last year.
As for the other models, the X70, Proton X50 and Proton Exora retained leadership in their respective segments with sales of 2,320 units, 1,573 units and 536 units. The Persona and Iriz finished third and fourth in their segments as stiff competition and parts shortages continued to affect sales.
Not entirely smooth running yet
“The first three months of 2022 were tough for Proton and our customers. Production issues continue to suppress our true potential and as a result, created a long waiting list for our cars. Our parts supply and hence, production volumes, began to stabilize in March but we’re expecting a few more disruptions in the coming months as other industries have still to ramp up their production,” said Roslan Abdullah, CEO of Proton Edar.
“For the rest of the year however, Proton is still aiming to hit our targets as we work closely with our vendors and dealers to smooth out supply lines to deliver cars to our customers. We are also making progress with sorting out our aftersales issues and therefore, the company is confident it can rebound strongly over the next quarter,” he said.
Proton has been working hard to address the issue of customers not being able to get parts needed for repairs or replacement. The company has now made it a mandatory requirement for all authorized dealers to have a minimum of 3 months holding stock of 22 fast-moving parts. To support this, Proton’s own central parts centre will also be subject to the same requirement.
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