In spite of the challenges of getting parts, especially microprocessors, to complete vehicles, the auto industry in Malaysia actually had a boom year and is expected to have a Total Industry Volume (TIV) of over 700,000 units. Even by November, the TIV had reached 642,306 units, exceeding the sales forecast of 630,000 units made by the Malaysian Automotive Association (MAA).
For Proton, it was also another great year – the fourth, in fact – as the brand saw overall sales of 141,432 units (including exports) in 2022. This was with the addition of another 14,750 units in December, the fourth best monthly performance for the year.
Compared to numbers reported in 2021, Proton’s total sales grew by 23.3% despite a tough start to the year. Production was disrupted at both factories due to a combination of flooding which affected parts vendors in Selangor and an acute shortage of microprocessors, which was a global problem. The situation limited output and deliveries for the first 4 months of the year.
Sales for 5 out of six Proton models grew during 2022 and, according to the carmaker, 3 of those models were segment leaders. The X50 maintained its position as the best-selling SUV in Malaysia with a total of 40,681 units delivered, a new SUV annual sales record. This was an increase of 41.4% over 2021 and the B-segment SUV recorded the second highest volume in the Proton line-up.
The X70 joined the X50 in strengthening Proton’s position as the most popular SUV brand. Despite facing a strong challenge from new competitors, total deliveries during the year amounted to 18,533 units, an increase of 13.1% over the previous year. This kept the X70 in its position as the best-selling C-segment SUV for the fourth consecutive year.
The evergreen Exora kept its ironclad grip on the C-segment MPV market with 4,275 units sold in 2022, up by 5.9% compared to 2021. Having undergone a minor update in August, it continues to be the popular choice of buyers looking for a spacious people carrier with intelligent features, and offers great value for the price.
Saga still Proton’s bestseller
The bestselling Proton model was the Saga and with the addition of 5,913 units in December, its total volume for the year came to 55,878 units, an increase of 31.1% over the previous year. The high volume was achieved in spite of the Saga being the model most acutely affected by the floods at the end of 2021 (only 76 units could be delivered in January 2022).
There was also positive progress for the Persona, which also faced tough competition and production disruption due to the chip supply issue. It finished the year with a total of 16,357 units which was a small increase over the volume in 2021.
“2022 was a year of achievements but also missed opportunities for Proton. The effect of the floods at the end of 2021 spilled over in to the first quarter of the year and we began 2022 on the back foot as we collaborated with our vendors to restore parts supply. Thankfully, the volume was made up over the next three quarters. We are certain we could have achieved more and posted even better numbers if not for the disrupted start to the year,” said Roslan Abdullah, Deputy CEO of Proton.
“Still, Proton now has sales growth for a fourth consecutive year, and we are proud of being the only automotive company in Malaysia to achieve that from 2019 to 2022. Looking ahead towards 2023, Proton is confident of achieving more growth as we add to our range of offerings with our new model launches this year,” he said.
2023 volume likely to recede
Encik Roslan Abdullah, however, expects the TIV to recede from the record volume in 2022 as deliveries for orders placed during the sales tax exemption period will be fulfilled by the end of March. The car companies are rushing to ensure their customers get the vehicles by the end of March 2023 which is the deadline for them to enjoy the sales tax exemption (provided they booked before June 30, 2022).
Interest rates are also expected to increase again this year so it will be tough for the automotive industry to continue an upwards trajectory,” he added.
Growing outside Malaysia
After doubling its numbers in 2021, Proton’s export sales continued to grow last year by 79.1% with a closing figure of 5,406 units. This number was the highest among the brands exporting vehicles produced in Malaysia.
The growth was powered by increasing consistency in the shipping industry, growth in key markets such as Pakistan and the addition of South Africa to the list of export markets.
Mirroring domestic sales, the Saga continues to be the most popular export model with 2,408 units sold last year. This was an increase of 31% over the previous year and proves there is still a lot of sales potential for the model in export markets.
The company’s two SUV models performed even better. 1,708 units of the X70 were sold in export markets, an increase of 101% while a first full year of export sales saw the X50 record 1,117 units, a jump of 277%.
“Growth in Proton’s export markets remains vital to the company. We are now halfway through our 10-year business plan and export sales will need to account for a growing percentage of our volume for the company to achieve its goals. With new models being added and growth from our current offerings in 2023, we are confident of hitting even bigger numbers this year,” said Encik Roslan Abdullah.
