new vehicle sales Archives

Perodua sales and deliveries accelerating with 102% increase between September and August

After a difficult third quarter, the auto industry is picking up again and market leader Perodua is accelerating forward as sales and deliveries rapidly increase. In the third consecutive month, the total volume has increased by 102% to 14,160 units in September from 6,988 units in August.

“The automotive supply chain has shown improvements but have yet to reach their full potential. We are continuously working with our suppliers and dealers to further improve productivity and safety,” said Perodua President & CEO, Dato’ Zainal Abidin Ahmad.

Quality control maintained
While more vehicles are required, Dato’ Zainal Abidin explained that the increases would be gradual in both production and sales. “This is in keeping with the strict quality control measures throughout Perodua’s operations to ensure customer satisfaction,” he said.

For the period between January and September 2021, Perodua sold 119,093 vehicles, compared with 145,012 in the same period in 2020. Comparing the second quarter of the year to the third quarter, sales plummeted by 44.6% to 21,803 units between July and September as no business activities were permitted between June 1 and August 16.

Improving conditions
Dato Zainal Abidin is optimistic that the numbers will continue to improve in coming months as the country’s pandemic situation eases. “The fourth quarter of 2021 does offer a better outlook than the previous two quarters, especially the marked improvement in the reduction of COVID-19 cases nationwide as well as the nearly 90% vaccination rate of the Malaysian adult population,” he said.

All Perodua outlets are operational (unless they are in areas with specific EMCO conditions) and to locate the nearest one to you, visit www.perodua.com.my. As required by the Ministry of Health, all Standard Operating Procedures must be observed when visiting any showroom or service centre.

Perodua sales picking up but sales target for 2021 is lowered by 10.8%

New vehicle sales and production pick up again in August

*Data source: Monthly reports of Malaysian Automotive Association*

With business operations in most parts of Malaysia allowed to resume after over 2 months of forced closure, new vehicle sales and production started to rise in August. However, the Total Industry Volume (TIV) recorded was only 17,500 units as showrooms began operating only from the middle of the month. The August TIV was less than half of the average monthly sales during the first month of the year.

Compared to the same month in 2020, this year’s August TIV was 35,300 units lower although it was not as bad as in June when the full MCO lockdown began. In that month, the sales volume for the whole industry fell by 42,774 units,

As would be expected, the closure of showrooms has had an impact on the cumulative volume for the year. For the first 8 months of 2021, the TIV reached 273,757 units or 12,504 units (4%) less than for the same period in 2020. This has led the Malaysian Automotive Association (MAA) to reduce its TIV forecast for the year by 70,000 units to 500,000 units. This would be almost 30,000 units lower than the TIV for the whole of 2020.

The lockdown also saw production at factories having to suspend their operations. During the lockdown months, the auto industry used the PIKAS initiative to get its workforce vaccinated in preparation for resumption of operations.

From mid-August onwards, the government permitted factories to resume operations but the number of workers allowed would be dependent on the percentage vaccinated. Those with 80% or more of their workers vaccinated were allowed to operate at 100% capacity.

From January to August, the total output from all the vehicle plants was 258,024 passenger and commercial vehicles. The same period in 2020 recorded 263,876 units or 2% higher.

With four months remaining, the car companies are hoping for the market to pick up as much as possible. To achieve the MAA’s target of 500,000 units by the end of the year means that monthly sales will have to average 56,560 units. This may well be possible if you look at the sales during the last quarter of 2020. However, in 2021, many more people and businesses have been struggling with the prolonged restrictions of movements and spending on expensive items like new cars might not be considered or possible.

Perodua sales picking up but sales target for 2021 is lowered by 10.8%

July new vehicle sales higher but nowhere near normal levels

As expected, new vehicle sales in July 2021 were way down, though not as rock-bottom as June when the Total Industry Volume (TIV) was under 2,000 units. As in June, the continued closure of showrooms meant that no sales could be conducted and even if they could, registering the vehicles would not be possible. However, July’s TIV was 270% or 5,465 units higher as showrooms could operate in Sabah and Sarawak so sales were possible there and accounted for the higher numbers.

Minimal bookings from online channels
According to the Malaysian Automotive Association (MAA), which has been compiling data since the 1960s, members reported that bookings via online channels were minimal. These ‘virtual showrooms’ started to appear over the past year as stricter SOPs were in force and there was also concern that customers might not be comfortable coming to showrooms. Customers can make bookings and make payments via online transfers to at least start the process. However, there are still the other things like loan applications which still need some personal interaction.

The cumulative TIV after 7 months reached 256,215 units this year, which was about 10% higher than for the same period in 2020 – and this has been with 2 months of virtually no sales. With sales resuming from mid-August, there will be a backlog to clear plus new orders so the TIV by year-end might still be higher than for 2020.

3-digit production figures
On the production side, the assembly plants have had to suspend operations too and the output fell to three digits in June but rose again in July. The disruption has been challenging for the plants which very much prefer consistent assembly. The shortage of microchips is also slowing output and as the end of the year nears, pressure will be on to deliver as many vehicles as possible because car companies are using the sales tax exemption as a selling point. It expires at the end of this year so many will want to make sure they can enjoy those savings.

Will sales pick up again?
Looking ahead, the MAA expects August sales to be better although there are only two weeks to the end of the month for sales. Furthermore, given the current situation in the country, not only with the pandemic but also the political situation, consumer sentiment may be cautious, and people will be reluctant to spend a lot.

According to MAA President, Datuk Aishah Ahmad, total losses for the local auto industry for the months of June and July have been estimated to be more than RM14 billion. “This is just only from sales of vehicles in the domestic market. Our members also lost much in terms of revenue from exports of vehicles and components, and sales of spare parts locally. All in all, these losses had been very substantial and unprecedented”, she said.

Car showrooms, accessory stores and carwash centres can resume operations from August 16

52% drop in new Honda vehicle sales in Malaysia from May to July year-on-year

Honda Malaysia reports that the ongoing restrictions of the Full Movement Control Order (FMCO) have impacted its business significantly, with sales of new vehicles falling by 52% during the May to July 2021 (compared to the same period in 2020). In compliance with government orders, the Company has suspended its business operations. These include closures of showrooms, its marketing and sales office as well as the assembly plant in Pegoh, Melaka.

However, aftersales services are allowed to operate at selected authorised Honda dealerships nationwide. Conditions for operations are that only minimal manpower is allowed and appointments must be made in advance. The HondaTouch app provides an easy way to make an appointment. Standard Operating Procedures (SOPs) must also be observed and customers can only go to a service centre if it is within 10 kms of their home.

*Showrooms cannot conduct business activities but selected authorised service centres (below) are permitted to provide aftersales support and emergency assistance.*

Only 5,700 units sold in 3 months

“With only certain aftersales services allowed and sales and manufacturing operations halted, it is no surprise that sales have plunged. Honda Malaysia saw a decline of 52% in car sales for the year-on-year period of May to July 2021. We sold about 5,700 units in this period compared to close to 12,000 units sold in the same period last year when the country was under a Conditional Movement Control Order (CMCO) and then Recovery Movement Control Order (RMCO),” said Madoka Chujo, Honda Malaysia’s Managing Director and CEO.

She added that the company fully supports the Malaysian government’s efforts to curb the spread of COVID-19 by adhering to the restrictions. However, there is concern that a ‘domino effect’ is occurring on all 101 authorised dealers who face financial difficulties. There is the uncertainty of employment for sales and service advisors as well as other staff. The sales advisors, especially, have been severely affected as their income is largely dependent on commissions earned through vehicle sales.

Salespeople in car companies are especially affected since much of their income comes from commissions for new vehicle sales. Right now, they can’t do any selling activities as showrooms remain closed.

Helping Honda associates

“Honda Malaysia understands the hardship that the dealers and Honda associates are going through, and hence, the company is trying to do its best to assist them during the difficult times. One of the efforts is by registering Honda associates under the Public-Private Partnership Industrial COVID-19 Immunisation Programme (PIKAS) to expedite the country’s rate of vaccination,” she said.

The company targets to achieve 100% of first dose vaccination for all its associates by mid-August 2021. As Malaysia has one of the world’s fastest vaccination rates, the company hopes to achieve its vaccination target and subsequently the nationwide vaccination programme will help create a safer environment for Malaysians. “Honda Malaysia is appreciative of the hard work of all the frontliners who have been working tirelessly to help fight the pandemic,” Ms. Chujo added.

*The Honda Malaysia assembly plant in Melaka is presently shut down in compliance with the FMCO.*

Effect on local suppliers too

She also revealed that the prolonged business closure has impacted Honda Malaysia’s new model production due to no testing conducted in the manufacturing facility. Furthermore, the company’s supply chain and export of parts are also affected.

“The automotive industry supports a wide network of local components and parts suppliers that comprises a few tiers. These suppliers might not be able to sustain their operations and this will subsequently affect the overall supply chain. The current extended lockdown and no visibility on business resumption timeframe have impacted planning and overall investment of the automotive marques,” she explained.

Honda Malaysia hopes that early resumption of the automotive sector activities will be possible under strict SOPs and guidelines set by the government. This can avoid the long-term impact such as retrenchment of employees and can help to prevent potential business closures among the supply chain.

Honda Malaysia and its suppliers distribute essential goods to 6 charity homes

Summary of new vehicle sales and production in May 2021

*Data for 2021 does not include Mercedes-Benz sales as the company does not wish to release its numbers. Source: Monthly reports of Malaysian Automotive Association.*

While the Total Industry Volume (TIV) for May 2021 was double the TIV for the same month in 2020, the decline was beginning as the nationwide Movement Control Order (MCO) required non-essential businesses – including car showrooms – to be closed from May.

The Hari Raya festive period also reduced the number of working days and saw the TIV for May (46,663 units) being 19% lower than April.

90% of new vehicle sales were passenger vehicles, excluding pick-up trucks. This is also mirrored in the cumulative TIV for the first 5 months of 2021 which reached 245,932 units. During the same period in 2020, the TIV was 128,790 units due to the stoppage of businesses when the first MCO was implemented.

*Source: Monthly reports of Malaysian Automotive Association*

The vehicle output at the assembly plants also fell with the effects of the global shortage of microchips hampering production for some brands.

The total output of 42,522 units was 18% lower than in April or almost 9,000 units difference.

Cumulative output for 5 months was 240,998 units, or 117,142 units more than for the same period last year.

The MAA expects sales in June to be minimal and composed of companies carrying forward invoicing from May. No new vehicle sales can be conducted throughout June as showrooms must remain closed. Furthermore, agencies handling vehicle inspections or registration are also closed or working at reduced capacity.

Perodua sees sales numbers from a different perspective, but expects to meet 2021 target

As some car companies report their sales figures for May, significantly higher numbers are evident this year compared to a year ago. But the second quarter of 2020 was a very unusual period, even unprecedented for the car industry as sales and production in one month fell to almost zero. So when you are comparing to almost rock bottom, any number this year will look better.

This was acknowledged by Perodua’s President & CEO, Dato’ Zainal Abidin Ahmad, who said: “While Perodua’s year-to-date May sales of 96,281 units is 82% more than the 52,920 units sold in the same period last year, this achievement is distorted as the first Movement Control Order was in place from March to May last year.”

*All sales outlets nationwide will be closed for the duration of the FMCO.*

Compare to 2019 instead

He explained that a fairer comparison would be against 2019, when Perodua sold 105,745 units in the first 5 months – 8.9% more than it did in the same period this year. This perspective takes into account not just the impact of the pandemic but also the semiconductor shortage that has affected carmakers globally. “It can be seen in the 12% sales reduction from April’s 20,399 units to May’s 17,973 units,” noted Dato’ Zainal Abidin.

“Despite these challenges and barring further uncertainties moving forward, we believe we will be able to meet our 240,000-unit sales target for 2021 as demand remains strong for all of our models,” he added.

Service operations

As required by the FMCO, all showrooms must be closed but for service centre operation during the lockdown period, Dato’ Zainal advises Perodua owners to contact their nearest service outlet for the latest information. The contact numbers of the authorised service centres nationwide can be found at www.perodua.com.my/locate.html.

Lower-priced childseat now offered by Perodua

As market goes into downturn, Proton’s sales also dip by 37%

2021 for the auto industry started low but as the first quarter progressed, sales volumes rose. However, with the second quarter, it appears that the market is going into a downturn. By Proton’s estimate, the May Total Industry Volume (TIV) of new vehicles registered fell by around 20%. While the Movement Control Order (MCO) may have had some effect, but shortages of chips – vital components for the many electronic systems in modern cars – have been slowing down output from the assembly plants.

For Proton, after seeing strengthening sales with each month, it reports that its May volume was down 37.1% from April. The Malaysian carmaker sold 9,440 units (some of which were exported) and with this volume, its estimated market share would be 20.3%.

Up to the end of May, the cumulative volume reached 57,283 units which translates to a market share estimated at 23.5% and an increase of 2.4% over the same period in the previous year.

As with the previous month, the X50 and X70 continued to lead their segments by a considerable margin. 1,899 units of the smaller SUV model were delivered in May while the X70 had 1,523 new owners. This brings the cumulative total of 3,422 units for the domestic as well as export markets.

Exports reach new 98-month high
Meanwhile, Proton’s overseas sales continue to gain momentum despite international markets going through varying degrees of lockdown. With 669 units comprising the Saga, X50 and X70 exported in May, the company’s international sales division recorded its best month since March 2013. As a result, total export sales for 2021 are now less than 100 units behind the total for the whole of last year.

“Car sales in Malaysia dipped in May due to factors such as chip shortages and the implementation of MCO in the middle of the month. Despite most industry players having healthy order books, most brands struggled to meet demand. For Proton, the numbers were high enough to retain second overall in the sales table and we also received a welcome boost from our export division who set a 98-month high despite restrictions on international shipping,” said Roslan Abdullah, CEO of Proton Edar.

Focusing on the future
With the full lockdown in effect (tentatively until June 14), all Proton sales outlets have to be closed. However, its authorised service centres are allowed to operate. Proton owners are requested to make a prior appointment before going to the service centre (which should be within 10 kms of their home address).

The company will also be considering utilising the enforced break to retool its sales plan for the remainder of 2021. It aims to future-proof its business against regulatory changes and external factors such as the coronavirus.

“2020 proved to the world that business as usual can be disrupted without warning. To remain competitive in an unpredictable environment, Proton, along with its vendors and dealers, need to have the flexibility to pivot quickly to take advantage of unexpected opportunities. As such, we will intensify our efforts to implement a framework to meet upcoming regulations locally and internationally which is vital for future growth,” Encik Roslan said.

“We are also finalising our model launch plans for the rest of this year. The current MCO will push some of these dates back, but Proton remains committed to meeting our launch targets and creating some excitement for our customers in 2021,” he added.

With greater attention to overseas business, Proton aims to double export volumes in 2021

Summary of New Vehicle Sales and Production in April 2021

*Source: Monthly reports of Malaysia Automotive Association*

A year ago, new vehicle deliveries stopped as the first Movement Control Order (MCO) was in force although 141 vehicles still reached their customers. A year later, although the MCO is still in force in varying degrees, sales and deliveries continue and in April 2021, the Total Industry Volume (TIV) was the third highest in 12 months with 57,912 units registered.

Cumulative sales for the first four months of this year compared to the same period in 2021 were 89% higher,as would be expected with sales in March and April 2020 having been impacted severely and dropping to the lowest level ever.

For some brands, new vehicle supply was also a factor in April sales being 12.3% lower than March due to the global shortage of computer chips used in the many electronic systems in cars today.

On the production side, it was the same thing a year ago as plants were also ordered to stop operations and only 275 units were reported to have been completed in April 2020. This year, 51,390 vehicles were assembled locally during the same month. As mentioned earlier, shortage of computer chips – a crucial item – saw production dropping diminishing.

93% of vehicles assembled locally were passenger vehicles (excluding pickup trucks).

It should be noted that the as Mercedes-Benz Malaysia does not wish to reveal its sales numbers, they are not included in the data above.

Forecast for May
The Malaysian Automotive Association expects the TIV to continue falling, and May registrations are likely to be lower than April. Although the latest MCO allows for businesses and factories to continue operating, stricter controls on public movements may dampen sales.

Besides the effects of the MCO, the Hari Raya festive period would also be a factor in diminished sales volume. Additionally, supplies of vehicles are also likely to remain affected by the chip shortage.

Toyota and Lexus sales continue upwards with 12.7% increase in April

UMW Toyota Motor (UMWT) reported that it started off the second quarter of 2021 with strong sales of 9,280 vehicle for the Toyota and Lexus brands, a 12.7% increase over the number of vehicles delivered in March. The rising sales volume was largely driven by restored consumer purchasing confidence, with growing demand for the appealing new models such as the Corolla Cross and Harrier.

Furthermore, with the PENJANA sales tax exemption set to expire at the end of June this year, many are also not wasting the chance to save money.

Measures helping restore confidence
“The COVID-19 pandemic has resulted in an extremely challenging year for both manufacturers and consumers, but measures put in place by the Government has successfully restored and strengthened consumer purchasing power,” said Akio Takeyama, Deputy Chairman of UMW Toyota Motor.

He also attributed the growth in sales to the timely introduction of numerous new models that have been able to firmly establish new benchmarks in the various vehicle segments by enhanced technological and safety features, styling and driving dynamics.

2021 Toyota Corolla Cross — *Latest Corolla Cross and Harrier (below) helped boost sales in April.*

Network expansion continues
Although business may seem slow for now due to the pandemic, UMWT is not sitting still and preparing for the future with continued commitment for expansion and the enhancement of its sales and aftersales service network. It has opened a new 2S Sales and Service Centre in Cheras (PDC Automobile) and two new 3S Sales, Service and Spare Parts Centres in Johor Bahru and Terengganu.

*New Toyota 3S dealership in Kemaman, Terengganu.*

“Additionally, we have also been paying close attention to customers’ inclinations for online connections as indicated by strong digital preferences and gains that we have received through online enquiries and bookings. We will continue our assertive pursuit on digitally-led avenues and serve our customers better on all platforms, moving forward,” said Ravindran K., President of UMW Toyota Motor.

Hari Raya Aidilfitri promotions
With the Hari Raya Aidilfitri festive period underway, UMWT has a Countless Rewards promotion which offers customers will continue savings that can be enhanced with Toyota Service Savers that lower maintenance cost for their vehicles. New car buyers can also opt to benefit from lower instalments (depending on model) with UMWT’s EZ Beli financing scheme.

Mr. Ravindran added that UMWT’s annual Hari Raya Festive Film titled ‘Umi Pembaris’ will be released this week. “It honours timeless lessons on family values, culture and tradition that we keep ever so closely to our hearts even in this age of change, transformation and modernization,” he said.

For more information on Toyota models available in Malaysia and the locations of showrooms nationwide, visit www.toyota.com.my.

After a difficult 2020, Toyota sales are stronger in 2021 with 62% increase year-on-year

Ativa SUV accounts for 22% of all new Peroduas sold

*Visit www.bhpetrol.com.my for more information.*

After the first four months of 2021, Perodua’s total sales volume has passed the 78,000 mark, with April contributing 20,399 units to the number. A big contributor has been the Ativa SUV which accounted for over 22% of the figure (4,624 units). Since its launch in March this year, the carmaker has delivered almost 9,000 units of the Ativa, with around 290 new customers placing bookings daily. The strong demand has stretched the waiting period for customers which, as always, Perodua tries to shorten.

2 – 4 months waiting period
“The waiting period for the Ativa is currently between 2 and 4 months, depending on the desired colour and variant. We advise our valued customers to speak to our authorised sales advisors for accurate and up-to-date delivery times of the various variant-colour combinations of the Ativa,” advised Perodua’s President & CEO, Dato’ Zainal Abidin Ahmad.

“Perodua remains committed towards timely deliveries, aided by our economies of scale. We thank our valued customers very much for their patience. We are doing all we can to deliver as many cars as possible before the expected expiry of the government’s sales tax exemption at the end of June,” he said.

Semiconductor chip shortage
On a month-to-month comparison, sales dipped by 16.5% to 20,399 units from 24,431 units, mainly due to the semiconductor chip shortage, which is affecting multiple industries globally.

“The chip shortage is our top priority at present and we are deploying all our resources to deal with it, including working closely with the government and our business partners for viable solutions,” Dato’ Zainal said. “Despite the global semiconductor chip shortage, Perodua managed to produce 20,278 vehicles in April 2021, pushing our year-to-date production to 80,661 units,”

*In 2021, Perodua will purchase up to RM6.5 billion worth of parts from suppliers in Malaysia. These include transmissions made at a factory in Negeri Sembilan.*

Perodua is maintaining its 2021 sales target at 240,000 units for now. The target represents a 9% increase from the 220,163 units sold last year. The increased volume will also see Perodua making a record purchase of RM6.5 billion worth of locally-sourced components this year. Production is also set to be increased to 272,000 units, 23% more than the output in 2020.

Visit www.perodua.com.my to know more about the models available and where to view, test-drive or purchase them.

Perodua aims for 9% increase in sales volume to 240,000 units in 2021

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