When automotive historians look back on 2020, it will be regarded as a dark period for the industry. Factories had to shut down for long periods, along with showrooms, and sales came to a standstill for a couple of months. It was an unprecedented situation; even during the worst recessions, business still continued.
However, it appears that the industry is recovering steadily and where the Malaysian market is concerned, the Total Industry Volume of new vehicles sold exceeded 50,000 units for the second month in a row. That’s partly due to the government exempting sales tax, which lowers the retail price, but there would also have been people who had to defer their purchases in March and April.
Market share estimated at 21.7%
For Proton, things have been going well with yet another great month – its second best – in August. During the month, 11,378 units were sold, an improvement of 24.7% over the same month in 2019. With this volume, the brand’s market share for the month is forecast at 21.6% while its year-to-date market share is estimated to be 21.7%.
With 61,672 sales so far in 2020, Proton‘s cumulative sales volume after 8 months is 46 units ahead of the same period from the previous year. The achievement is particularly noteworthy as sales in March, April and May were affected by the Movement Control Order (MCO).
The company also states that three of its models were sales leaders in their respective segments although we wonder how they determine that when the official data for individual model sales of other brands is not released. In any case, the powerful Competition Commission makes it an offence to share such information. This was declared some years back with the Competition Commissioner saying that if such data is shared by the industry, ‘the prices of spare parts will go up’. As a result, the Malaysian Automotive Association stopped releasing model sales data and the data can only be made public 12 months later.
“Proton is pleasantly surprised by how quickly we have been able to recover the lost sales during the MCO period, as it only took us three months to get back on track. By exceeding our YTD volume in August 2019, we are quietly confident of recovery from the headwinds of COVID-19. The positive effect this has on the company, our employees and the vendor community cannot be understated and we hope to continue this trend until the end of the year so as to give the automotive industry ecosystem a strong boost,” said Roslan Abdullah, CEO of Proton Edar.
2020 will be remembered as a very bad year for the auto industry in Malaysia and other countries. The COVID-19 pandemic stopped sales (and production) leading to unprecedented contraction of markets by nearly 100%. When business was allowed to resume, consumers remained still worried about uncertainties of the future, leading to more cautious spending/
This of course doesn’t help the economy to recover so the government has had to allocate billions for aid to various sectors to provide incentives to consumers and encourage them to start buying. For the auto industry, the assistance is in the form of exemption of sales tax, which will be given till the end of the year.
The incentive seems to work as most companies have reported high sales numbers, although the Malaysian Automotive Association (MAA) expects that when the year ends, the Total Industry Volume (TIV) will be around 470,000 units – 22.2% or 134,287 units lower than the TIV in 2019.
Among the companies experiencing healthy sales numbers is Proton which reports that its total sales volume in July was its highest since June 2012. Compared to June 2020, the increase was 37.2% while compared to July 2019, it was 45.7%. And with 13,216 units delivered, the carmaker estimates that it should have a market share of 63.2% of the TIV for the month.
Four models are said to have topped their respective segments. The Saga, with 5,421 units (including all 1,100 units of the 35th anniversary edition) sold led in the A-segment. The popular X70 recorded its best month since being launched as 3,087 units of the SUV were delivered to new owners nationwide.
The other two Proton segment leaders were the Persona and Exora, with 3,043 units and 792 units, respectively, sold in July.
“Proton’s performance in July 2020 was our best in over 8 years. We are especially happy with how our models are faring within their segments. We also note that there has been a positive effect on other areas of the business as a result of the encouraging sales. For instance, Proton Commerce, our in-house vehicle financing provider, saw an increase of 100% in the number of loans it disbursed compared to the previous month. Therefore, we are thankful for the support shown by all Malaysians and as for now, we remain cautiously optimistic for 2020,” said Roslan Abdullah, CEO of Proton Edar.
“For August, Proton aims to continue to excite the market and stimulate sales in preparation for more model introductions later in the year. Our production, quality, sales and aftersales divisions are all working hard to ensure we are able to meet consumer demand as well as deliver a level of customer service befitting the brand promise that we have set out,” he added.
Proton is having quite a year after showcasing a strong year-end performance. Sales in November alone actually doubled with an amazing 9,643 units sold. The tally now stands at 89,476 units sold so far this year, which is a significant 50.1% increase (16.2% increase in overall market share for 2019). (more…)
News from Proton has been good all year long, with upbeat press releases arriving at our mailboxes every month. And as the end of the year approaches, the carmaker reports that its cumulative sales volume (including export deliveries) is almost at 80,000 units (79,833 to be exact) after 10 months. This represents a growth rate of 46% in a market where the Total Industry Volume (TIV) has decreased by 1.3% to date.
Pending official industry data from the Malaysian Automotive Association (MAA), Proton estimates its market share to be 16%, which is 5.2% higher than the previous year. It has strengthened its hold on second place in the overall sales chart and is confident of maintaining this position to the end of 2019.
While sales of the X70 SUV have contributed to Proton’s upswing – over 24,000 units have been delivered so far – the Saga has also drawn a huge number of customers since being launched in August. Over 28,000 bookings have been received and in October, the new model posted its highest sales figure for over four years. 4,273 units were sold last month and for the first 10 months of the year, the cumulative total is 30,331 units, which is a 26% increase over the previous year.
“We are humbled by the response our products have received from Malaysian car buyers. In the space of just 8 months, we launched our first SUV and updated all our other models, giving Proton the youngest model range for any car brand in Malaysia. The hard work has paid off with increased sales and we are now confident of being able to sell 100,000 units this year, providing us with a solid base to move forward in 2020 and beyond,” said Dr Li Chunrong, Chief Executive Officer of Proton.
Dr. Li said the company is matching the commitment of its dealers by continuing to invest in training programmes for sales and service staff to ensure the level of service delivered matches the premium image the brand aspires to. “As we grow the number of 3S/4S outlets, we can then deliver an improved brand experience to more Malaysian car buyers. Proton will continue to focus on improving customer service levels as we know it is one of the keys to building long-term brand loyalty,” he added.
Proton has achieved its highest sales figure in the past four years (46 months to be exact) last month where they sold a whopping 10,611 cars just for May alone. This is a giant leap of over 51% in sales numbers compared to April 2019.
This achievement meant that the first five months of 2019 saw an increase of sales by 70% compared to the same period in 2018. This is all thanks to their strong assault in promoting models with intelligent features that started off with the introduction of the Proton X70 where it trickled down to the rest of the model line-up such as the updated Iriz, Persona, and the Exora. (more…)
After a short period of inactivity for PROTON in exporting cars, the Malaysian automotive manufacturer is now back in action for the second half of 2018. Recently, PROTON resumed exporting cars to the Middle East, marking the first time the Company has done so since formalizing its partnership with Geely. A symbolic flag-off ceremony was held at Westports Malaysia’s berthing area to commemorate the occasion, with Proton cars lined up to be driven on board the Grand Diamond cargo vessel.
Demand remains strong for Proton products…
The port of arrival in the Middle East is Aqaba in Jordan and from there, the cars will be distributed to Iraq and other neighboring countries. The first shipment will consist of 453 Proton cars, which have a strong following in Middle Eastern markets. The enthusiasm for the cars is such that there are even active owners clubs in the region despite the slow-down in exports over the past few years.
“This ceremony marks a starting point for PROTON as we resume and ramp up shipments to the Middle East in the coming months. It’s also the first export shipment since the partnership with Geely commenced and we expect our export market to have a positive outlook in the future so be prepared for more such announcements from as early as August this year,” said Dato’ Radzaif Mohamed, Deputy Chief Executive Officer of PROTON.
Voicing the same sentiment Eddie Lee, Chief Executive Officer of Westports, said, “We are equally excited to partner PROTON in its efforts to export cars all over the world, particularly as its last major export to Egypt was back in 2015. We believe Westports’ partnership with our customers like PROTON together with shipping agents like Sunship will further strengthen both brands, and help ensure cars sent over are in pristine condition.”
PROTON quality improvement efforts bear results…
Dato’ Radzaif’s enthusiasm for PROTON to grow its export market are backed by improvements to its product quality. Ever since the Company implemented the Global Customer Product Audit (GCPA) system on its production processes, the number of demerit points registered has seen a threefold improvement. Based on a sliding scale where smaller scores equates to better quality, the current GCPA score for PROTON as at the end of June 2018 is 1763 demerit points, with a year-end target of 1500. This compares favorably with Geely and Volvo who also use GCPA and have current scores of 1200 and 850 points.
“PROTON has always strived to produce high-quality products for our domestic and export markets but the collaboration with Geely has introduced a new quality mindset along with a shared quality audit system that is also used by Volvo. Using it as a roadmap we have managed to lower our demerit points threefold as we aim to deliver ever better cars to our customers,” he added.
Expanding export activities with assistance from Geely…
Also present at the ceremony was Dr Li Chunrong, Chief Executive Officer of PROTON. “The Middle East markets hold high regard for products from Islamic countries like Malaysia. The demand for cars will grow as their economies develop and will help fuel the growth of our export business. The ASEAN market however will remain as the main priority for PROTON’s export business so we are excited about the opportunities available in the region.” he said.
PROTON is also leveraging on Geely’s extensive overseas network operations to increase the cost effectiveness of its own operations. “We are exploring all opportunities to grow export volumes for PROTON. Geely are making a big effort to support us in this initiatives and there is a lot of experience within the group so we hope to leverage on it to enable us to sell more cars outside of Malaysia,” added Dr. Li.
Image from FreeMalaysiaToday
Meanwhile in other news from the sales side, PROTON marked the end of the first half of 2018 by posting strong sales numbers for the month of June. Sales grew by 50% over the previous month as 6,173 Proton cars were sold to Malaysians eager to take advantage of zero rating for GST and the Duit Raya promotion offered by the Company.
Approximately 10% market share with Saga and Persona leading sales…
In line with the increase in sales, total market share also increased with PROTON garnering approximately a 10% share of Total Industry Volume (TIV) for the month compared to 9.5% previously.
As with previous months, the Saga and Persona continue to lead sales, with the former registering nearly 3,000 units sold. Buyers were attracted to the strengths of PROTON’s compact family sedan with its class leading affordability, spaciousness and handling as well as the ‘Best Saga deal in 10-years’ promotion offered in June where a brand new Saga could be bought for less than RM30,000. Improved product quality for all Proton cars was also a contributing factor as the implementation of the Global Customer Product Audit (GCPA) system has seen a big reduction in production line demerit points for all cars.
“PROTON had its best sales month for 2018 in June, proving that Malaysians continue to find the current range of Proton cars attractive thanks to the range of features that have been engineered into each model. The attractive promotional offers we had, zero-rated GST price and an overall improvement in the quality of our cars helped to boost sales, which we are hopeful of carrying over for the remainder of 2018,” said Abdul Rashid Musa, Chief Executive Officer of PROTON Edar.
Improving quality scores…
After obtaining a J.D. Power Customer Service Index (CSI) score of 755 points in 2017, PROTON embarked on a quality improvement initiative to perform better in 2018. The CSI score is measured by examining dealership performance in five areas (in order of importance): service quality (32%); service initiation (22%); vehicle pick-up (18%); service advisor (15%); and service facility (13%) and to improve its score, PROTON has initiated activities to boost scores in each area.
Initial scores using PROTON’s own stringent internal audit system are already showing an improvement in CSI scores. Via the GCPA system implementation, the quality of the Proton cars has improved 3 times in the past 8 months, measured by the VOLVO quality standards. Combined, both activities the CSI initiatives and the product audit exercise, these will see an improvement in the overall experience customers have with the brand.
Supporting Tabung Harapan Malaysia As announced previously, PROTON is contributing RM10 for each car sold from 1 June to 31 December 2018. Therefore, following the first month of the programme, a sum of RM61,730 has been appropriated for Tabung Harapan Malaysia. With sales on an upswing and the launch of their first SUV due to happen before the end of the year the Company is optimistic about the amount of funds growing much larger.
“PROTON is proud that we have managed to earmark over RM61,000 for Tabung Harapan Malaysia in just the first month of our contribution initiative. It is our intention to sell even more cars for the rest of the year so as to contribute as much as possible to the fund that will eventually benefit all Malaysians,” explained Rashid.
New SUV receives boost from Tun Dr Mahathir…
While the launch of PROTON’s first SUV is still some months away, the pre-publicity build up for the first product jointly developed with Geely recently received a boost. The 7th Prime Minister of Malaysia, Tun Dr Mahathir Mohamad, recently met with the Chairman of Zhejiang Geely Holding Group, Li Shufu, and following their discussions the premier got behind the wheel of the first right hand drive (RHD) pre-production unit of the SUV.
An avid driver, Tun spent the ensuing weekend putting the test car through its paces and told the media the following week that it was very good and he was impressed by its quality. He also commented that the SUV would be a good product for the Malaysian automotive market and added that he wanted more Malaysian companies involved in the supply of automotive components. Having gained the stamp of approval from the Prime Minister, PROTON is intensifying its publicity efforts for the SUV in the lead up to its launch later in the year.
“We are happy that the Prime Minister of Malaysia, Tun Dr Mahathir Mohamad, approves of our efforts with Geely. This confirms that PROTON are on the right track and now that pre-production of the SUV has commenced we will soon begin our media and customer previews to build momentum ahead of the actual launch,” said Rashid.
PROTON registered sales of 4,783 units in January 2018 with forecasted market share of 10.9%, an increase from the 8.8% market share in the previous month, despite registering lower sales from 4,802 units in December 2017. The Saga, Persona and Exora were the most popular models, making up 80% of total Proton car sales for January 2018.
“As the most affordable and value-for-money car in its segment, the Saga remains to be the most popular choice among Proton customers, making up 41% of overall Proton car sales. Naturally, the Saga has been enriching the lives of more than 1.7 million Malaysian families since its first production. It received numerous recognitions with the recent ones being, Value for Money Car Award in 2016 and Compact Sedan of the Year in 2017.” said Abdul Rashid Musa, Vice President, Sales and Marketing, PROTON.
“The Saga we have now is the third generation Saga which has gone through a lot of improvement, enhancements and refinements. It has a quieter cabin due to the reduction of noise, vibration and harshness (NVH) level, with a more stylish design, much more practical, durable and gives customers better value for the good safety features, convenient features and comfort level in the car. From as low as RM35,590.29, or RM390 per month (without insurance), it is affordable to most Malaysians,” Rashid added.
USHERING THE YEAR OF THE DOG
In conjunction with the Chinese New Year celebration, PROTON is rewarding its customers prosperity discounts* for all Proton models, up to RM500* for an Exora, up to RM1,000* for a Saga, up to RM1,000* for a Persona, up to RM5,000* for an Iriz, and up to RM13,888* for a Perdana.
Customers can also drop by any PROTON authorised service outlets for a free 20-point safety inspection** before starting their long journey. For more information, customers can contact PROTON Customer Care at 1800 888 398 or email customercare@proton.com.
Customers can also visit www.proton.com or its official Facebook page at www.facebook.com/ProtonCarsOfficial.
For added convenience, customers can download the official MyProton mobile app, available via Google Play and Apple App Store.
*Terms and conditions apply. Discounts vary by models. Promotion valid until 28 February 2018. **Terms and conditions apply. Promotion valid until 24 February 2018.
