Proton’s resurgence continued into 2021 with strong monthly sales for the first three months, with March recording the highest volume of 14,989 units (including exports). It was 26.2% higher than the February numbers, which is estimated at 23.5% share of the market, and this volume was also the best sales month since September 2013.
Maintaining its second position on the sales chart, Proton’s cumulative sales for the first quarter (Q1) of the year totalled 32,826 units, giving the brand its highest quarterly market share figure since March 2012.
The top-selling model in March was the Saga with 5,589 units delivered, an increase of 32.5% compared to February. The Persona, Iriz and Exora also posted their best figures for the year with the MPV being the leader in C-segment MPV sales.
SUV sales keep growing
SUV sales continued to grow and more vehicles could be delivered as the new production line at the Tanjung Malim factory enabled higher output. In total, 3,513 units of the X50 were delivered to customers while the X70 saw a month-on-month increase of 58.4% to 2,337 units. When combined, Proton set another internal record with 5,850 SUVs delivered, beating the previous record of 4,820 units that was set in February.
“After a soft start to the year, Malaysia’s automotive industry has finally hit its stride for 2021. We estimate Total Industry Volume to be over 63,000 units, suggesting all brands will post their best numbers for the year to date. For Proton, March was a very good sales month as we achieved our highest figure in 90 months but our sense of achievement is tempered by the fact that it could have been even better if we were able to produce more units,” said Roslan Abdullah, CEO of Proton Edar.
“As things stand, we still have a large order bank to fulfil so over the next few months, Proton will strive to increase production while maintaining our focus on delivering high quality products. We are also mindful that the PENJANA incentives are currently due to expire by the end June, so we aim to ensure as many customers as possible are able to enjoy the tax holiday given by the government,” he added.
New production line at the Tanjung Malim factory has increased output of vehicles.
More loan disbursements
“While the increase in unit sales of Proton vehicles has been our main focus, it is important to acknowledge the growth in loan disbursements by Proton Commerce Sdn Bhd, our in-house auto financing subsidiary. This proves we are offering attractive financing packages to our customers and can compete against other players in the automotive finance market,” Encik Roslan said.
Nearly 4,000 loans were disbursed in Q1 2021 with an estimated 1,700 contracted in March alone. The latter figure is equivalent to a 122% growth over February and overall, disbursements for the first quarter of the year are up by 141% over 2020.
“More importantly, customers can enjoy the convenience of purchasing and financing their new Proton from our authorized dealers, making our outlets a one-stop centre for all their Proton needs,” added Encik Roslan.
After Naza’s swift termination of its involvement with the Kia and Peugeot brands during the last quarter of 2020, the market was curious to see who would take over the brands. By December, one part of the question was answered when Berjaya Auto Alliance Sdn Bhd (BAASB) was announced as the new distributor for the French brand. BAASB is a joint venture between Berjaya Corporation and Bermaz Auto, the latter already established as the distributor of Mazda vehicles.
Kia took a bit longer but Bermaz Auto (or BAuto) was a strong candidate and today, that has been officially confirmed with the full details announced at a press conference. A subsidiary of BAuto, Dinamikjaya Motors Sdn Bhd (DMSB), will be the sole distributor while another company – Kia Malaysia Sdn Bhd – has also been formed to manage the assembly of Kia vehicles locally and Kia Motors has majority share in this company.
A fist-bump between Tae-Hun Lee, President & CEO of Kia Asia-Pacific (left) and Dato’ Seri Ben Yeoh, Executive Chairman of Bermaz Auto, after exchanging documents to start off the new relationship between the two companies.
Joint-Venture and Distributorship agreements
Commenting on this development, Tae-Hun Lee, President & CEO of Kia Asia-Pacific, said: “After months of searching for the right partner, Kia is delighted to enter into the Kia JV and Kia Distributorship with Bermaz Auto. With BAuto’s proven capability in successfully building up automotive marques in Malaysia and the Philippines, as well as their automotive manufacturing experience, we believe we have placed the Kia brand in good hands under the capable leadership of its Executive Chairman, Dato’ Seri Ben Yeoh.”
While the matter of continuing its presence in the Malaysian market is settled, Kia is also looking at making its assembly operations Malaysia a hub for supplying vehicles around the region and possibly beyond. In as far as ASEAN is concerned, the Free Trade Area (AFTA) agreement provides for duty free import of vehicles by an ASEAN country of the vehicle is produced within the region. However, the level of ASEAN-sourced content must be at least 40%.
The first two models to be assembled in Malaysia will be the Seltos (above) and the 4th generation of the Carnival MPV which was launched in Korea in August 2020.
Due to current government policies and incentives, vehicles assembled in Malaysia can be sold at more attractive prices in the local market, enabling growth of volumes. However, Dato’ Seri Yeoh said that the locally-assembled models won’t be available for at least 12 to 18 months as that is the time that will be needed to prepare the plant and get suppliers of certain parts.
Local assembly to be at Inokom plant
The plant to be used is Inokom Corporation in Kulim, Kedah which is majority owned by Sime Darby Berhad. The other shareholders are Bermaz Auto and, interestingly, Hyundai Motor Company (15%). The Korean carmaker was actually an original investor in the plant when it began operations in 1997 and in those early years, Renault also had a share. Both Hyundai and Renault assembled some products that were sold under the Inokom brand then.
In the meantime, DMSB will distribute models that are imported CBU (completely built-up) from Korea. There are some stocks remaining from Naza’s inventory which will be taken over and sold through the Kia network which has 30+ dealers presently.
The Inokom factory in Kedah where vehicles from the BMW, Hyundai, MINI and Mazda brands are currently assembled, with Kia to be added next year.
Three models to be assembled
At least three models will be assembled locally and the first two have already been identified. They will be the Seltos, a small SUV, and the new generation of the Carnival. The third model will be decided later. When exports do begin, possibly in 2023, the first market is likely to be the Philippines as BAuto already has its own subsidiary there handling the Mazda business. Of course, a new operating unit will be set up for Kia, and the same will apply in Malaysia although some of the key figures at the top will be the same for all the brands.
The most notable is Dato’ Seri Ben Yeoh who has decades of experience in the auto industry. He started off in the 1970s at Cycle & Carriage Bintang and was involved in Mercedes-Benz vehicles, and then spent time over the following decades involved in brands such as Toyota, Daihatsu, Proton, Hyundai, Skoda and Mazda. He is therefore familiar with Japanese, European and Korean products and is helping develop the next generation for the auto business.
Dato’ Seri Ben Yeoh (left) and some of the members of his team who have set a good track record of building up the Hyundai and Mazda brands.
He is aware of the legacy issues relating to Kia vehicles and said that DMSB will examine all past promises to customers and see how to best move forward with existing owners. Given the track record shown in building up the Mazda brand in Malaysia, many expect that he will put a shine on the Kia brand in due course. He said that he is also pleased that Kia Motors has a share in the joint-venture as this demonstrates that strong commitment and support for the business.
Dato’ Wong Kin Foo, who will head the Kia business, has previously been in a company that also handled Mazda, Peugeot and Kia. This was during the 1990s when Cycle & Carriage Bintang was the distributor for the brands. He will also be heading the team at BAASB which handles Peugeot and is a director of Bermaz Motor which handles Mazda.
The Inokom plant is very familiar to the BAuto leadership, some of whom were in its management in its earliest days. They also began local assembly of Hyundai models during the days when Hyumal was the distributor and 10 years ago, they returned to being involved at the plant when local assembled of Mazda vehicles began again. Soon, they will be planning for the assembly of the Seltos and Carnival.
At the beginning of this year, Kia introduced its new brand logo and also announced a bold transformation strategy.
Kia’s bold transformation underway
The timing for BAuto to associate itself with Kia is also good, as it was when the company took over the Mazda franchise in 2008 from Cycle & Carriage Bintang. At that time, Mazda was starting with to introduce a completely refreshed range of models, all of which would prove highly appealing to customers and boost sales quickly. Likewise, Kia started this year with the unveiling of a new corporate logo which also marked the start of a bold transformation which will see the revamping of nearly all facets of its business to establish a leadership position in the future mobility industry.
The Korean carmaker’s long-term business strategy, which has the ambition to take a leading position in the global car market, will include popularizing electric vehicles. A global EV business strategy aims to put the brand in a leadership position and to achieve this, Kia will launch a diverse range of dedicated BEVs (Battery Electric Vehicles). “The next generation products are sustainable, focusing on high electrification, active safety, connectivity with many autonomous features and are highly human-centric,” observed Dato’ Seri Yeoh.
Kia will be focussing more and more on electrically-powered vehicles and aims to become a global leader in the field.
Dato’ Seri Yeoh said that while it is evident that Kia is strongly focusing on EVs, such vehicles may not be offered so soon in Malaysia. He has always been pragmatic in his approach to business and he believes that consumer acceptance needs to be stronger. That is the same sentiment that other companies have as the government is not pro-active in the area of electric vehicles. While governments in neighbouring countries have announced and even implemented sound policies and incentives that are attractive and give carmakers confidence to invest, Malaysia is still not doing the same.
Calling existing Kia owners
In the meantime, DMSB, as the new distributors, would like all existing owners of Kia vehicles in Malaysia to provide their details so that they can be registered in the database. This is especially important for those whose vehicles are still under warranty. It is almost certain that as a responsible manufacturer, Kia will honour whatever warranties have been given with their vehicles sold previously but DMSB will need owners to provide information. Furthermore, being registered in DMSB’s database means that any recalls or other notifications will be communicated to them. To register details, visit this website: Kia Customers’ Information Update.
MG is an old British brand and while many Malaysians may think the brand has faded away, it is actually still around and is owned by SAIC, a company in China. The company is known as MG Motor UK Limited today and has a range of models which it sells in certain markets.
Like other carmakers, MG Motor also has an eye towards the future and it will show what its vision is at the 2021 Shanghai Auto Show later this month. The vision will take a 3-dimension form known as the Cyberster concept car which was developed by the team at the MG Advanced Design Centre in London.
It is a 2-door, 2-seater sportscar recalling the brand’s tradition, drawing a number of styling cues from the classic MGB Roadster. There are those classic round MG headlights, coupled with a slim grille design, along with interactive ‘Magic Eye’ headlights that open when switched on.
Other interesting details of the MG Cyberster are the ‘laser belt’ LED strip down the side of the car and the outline of the door, which follows the direction of the LED strip. The tail lamps are of LED construction and are integrated flat into the rear of the car, projecting a digital image that echoes MG’s British heritage.
“Sports cars are the lifeblood of the MG DNA and Cyberster is a hugely exciting concept for us,” declared Carl Gotham, Director of SAIC Design Advanced London. “The Cyberster is a bold statement that looks strongly into MG’s future, touching on our heritage but more importantly building on our cutting-edge technology and advanced design.”
The Cyberster’s, with intelligent all-electric architecture, will have a projected EV range of 800 kms and is claimed to be able to go from 0 to 100 km/h in less than 3 seconds. It will also feature 5G interconnectivity.
One of the current MG models on sale and (below) two concept cars presented in earlier years.
Owning a Volkswagen Passat will undoubtedly give much driving pleasure and Volkswagen Passenger Cars Malaysia (VPCM) is enhancing that ownership experience with a complimentary stay at the Pangkor Laut Resort in Perak. The offer is for customers who purchase a new Passat Elegance or Passat R-Line before April 30, 2021.
Additionally, during this promotion period, the Passat Elegance comes with insurance premium (worth RM5,500) covered by VPCM for the first year, while the Passat R-Line comes with a year’s free supply of petrol (worth RM2,500).
The Pangkor Laut Resort stay is for two nights for two persons in a Hill Villa up on the hillside of the island which offers a magnificent view of the sea and overlooks beautiful tropical gardens. Inclusive in the package are all three daily meals, and guests will also receive a 50-minute massage treatment. The package covers return scheduled speedboat transfers to and from Marina Island Pangkor on the mainland.
Pangkor Laut Resort in Perak
Valid until December 2022
Of course, for now, interstate travel is not permitted so new Passat owners from outside Perak would not be able to drive to Lumut, from which the speedboat starts. However, the stay is valid until December 20, 2022 which is over one year away so restrictions should end by then. You can help bring that end as soon as possible by doing your part to bring the COVID-19 case numbers down.
“The current travel implementations by the government meant that we have not been able to travel and get away from the hustle and bustle of our city lives. With this campaign, we are delighted to offer our customers the opportunity to experience two award winners – the Passat, the world’s best-selling mid-sized sedan – and Pangkor Laut Resort, previously voted ‘Number One in the World’ by Condé Nast Traveller,” said Erik Winter, Managing Director of VPCM.
The Passat Elegance and its sportier sibling, the Passat R-Line are the world’s best-selling mid-sized sedans. Both are powered by a 2.0TSI turbocharged petrol engine with 190 ps/320 Nm output, and paired with a 7-speed wet clutch direct shift gearbox (DSG). The top-of-the-range R-Line also comes with Dynamic Chassis Control and other technologically advanced features. With the current sales tax exemption (until June 30, 2021), the Elegance is priced at RM181,856 and the R-Line is at RM203,411 (excluding insurance).
The Passat Escape
On April 10/11, Volkswagen dealerships nationwide will be hosting ‘The Passat Escape’, an event to showcase the features of the two models and highlight attractive deals and promotions. Customers are invited to tune in to the respective dealers’ social media channels or visit any authorised showroom.
All Volkswagen models come with 3 years of free scheduled maintenance, 5 years warranty with unlimited mileage, and 5 years of complimentary roadside assistance. For more information on the Passat and other models available in Malaysia, visit www.volkswagen.com.my.
Although sales in the first month of this year began on a low note with the Total Industry Volume (TIV) of new vehicles registered being 51% lower than the TIV in December, the market gradually improved and most companies had increasing sales in the two months that followed.
Perodua sold an estimated 57,911 vehicles in the first quarter of 2021 (Q1) which was 29% greater than the 44,977 units it sold in the same period last year. Of course, it must also be remembered that March last year was a short business month as the Movement Control Order (MCO) began and no sales activities could be carried out at all.
Month-on-month, Perodua’s registrations jumped by 47.3% to 24,433 units in March 2021 compared to February 2021’s 16,583 units. A big contributor was the new Ativa SUV (below) which was launched in early March, with 4,345 units delivered during the month.
14,574 bookings for Ativa
“March saw a jump in our sales numbers to an estimated 24,433 units, underpinned by strong demand, particularly for the Ativa, which has collected 14,574 bookings since we began order-taking on 19 February,” said Perodua President & CEO, Dato’ Zainal Abidin Ahmad.
“This makes the Perodua Ativa the best-selling compact SUV in the country in the month of March. We are glad that the Perodua Ativa has gotten off to such a strong start, and that we well surpassed our 3,000-unit monthly delivery target in the first month,” he said.
“We thank Malaysians for their support and trust. On our end, we are committed towards timely deliveries of every order made,” Dato’ Zainal said, adding that production has increased not just for this new model but also for all of Perodua’s models.
A shipment of newly built Perodua vehicles on the way to dealers.
Shortage of semiconductor chips
During Q1 2021, Perodua manufactured 60,383 vehicles – 23% more than the 49,280 units produced in the same period in 2020. However, like other carmakers, the company has been facing the challenge of shortage of the semiconductor chips needed for the many electronic systems.
“We are working with our partners to find alternative supply while at the same time monitoring the situation on a daily basis to ensure continued operation of our production lines,” Dato’ Zainal Abidin said. He is confident that, despite the semiconductor issue, Perodua will still be able to meet its initial 2021 sales target of 240,000 units.
The 2021 sales target represents a 9% increase from the 220,163 units sold in 2020, and is expected to lead to a record purchase of RM6.5 billion worth of locally-sourced components this year.
2021 versions of the Mazda6 and Mazda MX-5 RF are now available in Malaysia, Bermaz Motor announced today. Pricing (without insurance) for the models start from RM170,917 and RM258,591, respectively. Purchases made before June 30, 2021 will have 50% of the sale tax exempted under the PENJANA program.
With each new mode, Bermaz Motor offers 5-year (or maximum of 100,000 kms) manufacturer’s warranty and free scheduled maintenance for the first 5 years (or maximum of 100,000 kms). The free maintenance program includes costs for labour, parts and lubricants.
2021 MAZDA6
As before, this sedan model comes with a choice of SKYACTIV-G 2-litre and 2.5-litre petrol engines, coupled to the efficient SKYACTIV-DRIVE 6-apeed automatic transmission with manual shift mode. The driving dynamics are enhanced by G-Vectoring Control Plus which is the second generation of Mazda’s vehicle dynamics control technology which now has direct yaw moment control via the brakes as well.
For the Mazda6 2.5, there are 19-inch alloy rims finished in metallic black and Gloss Black Door Mirrors, while the interior comes with leather upholstery throughout the cabin is in Burgundy Red with the same colour used for the stitching on the dashboard and door trims.
The 2-litre variant is now equipped with Advanced Keyless Entry and a Walkaway door lock feature for extra convenience while paddle shifters have been added to the steering wheel. For the 2.5-litre variant, a power sunroof and head-up display are standard.
Both variants now have Wireless Apple CarPlay which allows iPhone connectivity without the need for a Lightning cable link. It uses a combination of Bluetooth and wifi to connect an iPhone and once paired properly, projecting the apps from the smartphone to the dashboard display can occur automatically. Android Auto is also available for those with smartphones running on the Android operating system.
The 6 previous colour choices for the Mazda6 – Soul Red Crystal, Machine Gray, Snowflake White Pearl, Sonic Silver, Deep Crystal Blue, Jet Black – continue to be offered, with Polymetal Gray now added to the list.
2021 MAZDA MX-5
Bermaz Motor is importing only the RF version of the roadster and a World Car of the Year winner. The design of this version has a Retractable Fastback (RF) which preserves the iconic lines of the sportscar while providing open-air motoring pleasure.
It is powered by a SKYACTIV-G 2-litre engine with a 181 ps/205 Nm output which goes to the rear wheels. Transmission options are a SKYACTIV-MT 6-speed manual transmission or a 6-speed automatic transmission with paddle shifters. Besides the kerb weight of 1,111 kgs which provides an excellent weight-to-power ratio, the driving dynamics are also enhanced by ‘jinba-ittai’, the unity between driver and car that are a must for every Mazda.
A manual transmission is also available with the SKYACTIV-G engine.
The MZD infotainment system with a 7-inch full colour touchscreen includes Android Auto and wireless Apple CarPlay (new) for ease of connectivity. Besides voice commands, the system is also managed by a multi-function controller between the front seats.
Customers have a choice of exterior colours – Soul Red Crystal, Snowflake White Pearl, Deep Crystal Blue, Machine Grey, Jet Black and Polymetal Grey.
To know more about the new Mazda6 and Mazda MX-5, visit www.mazda.com.my.
