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Proton Sales

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%.

Proton 4S Sabah

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).

Proton

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.

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With continued high demand, Proton reports that its total sales volume increased again for the month of April, the third consecutive month of growth. 15,017 units (including exports) were delivered, and the company’s cumulative volume after the first 4 months of 2021 reached 47,843 units. This is more than double the number for the same period last year although it has to be remembered that the MCO (Movement Control Order) shut down business activities for the whole industry for a while.

By its own estimate, Proton’s latest figure means it has a market share of 26.7% for April, and it continues to strengthen its hold in second position in overall the sales rankings table with a market share to date estimated at 24.4%.

Proton Saga at the top
The company believes its Saga is at the top of the national sales chart with 5,472 units sold in April while its two SUV models continue to set strong sales numbers. The X50, which has a long waiting list, set yet another new high for deliveries with 3,583 customers receiving their vehicles in April. The X70  was dominant in the C-segment SUV category with 2,101 units delivered.

Proton’s other 3 models also performed well and had their best months of 2021. Despite strong competition in the B-segment sedan market, 2,266 units of the Persona were sold, while the Exora continued to rule the C-segment MPV class. Iriz sales received a boost from strong demand for the R3 Limited Edition model that allowed it to have its best sales month since 2019.

2021 Proton Iriz R3 Limited Edition
Iriz R3 Limited Edition

Good month for the industry
“April was a good month for the automotive industry and aside from Proton, several other brands also had their best month of the year so far. The Total Industry Volume is estimated to be over 56,000 units as all brands are trying to fulfil sales orders before the expiry of the PENJANA sales tax exemption at the end of June 2021,” said Roslan Abdullah, CEO of Proton Edar, the company’s sales arm.

“For Proton, we are continuing with efforts to meet the strong demand for our products while maintaining a high level of product quality. At the same time, we are focussing on improving customer service and addressing issues related to spare parts availability, which is vital as our sales volume increases. We expect the situation will see significant improvement as the year progresses but we are working hard to move up that timeline,” he said.

He added that Proton Edar is looking forward to increased production volumes with the new stamping plant, which is now under construction. “The benefits of improved production volumes, lower costs and increased quality will allow us to increase sales exponentially both domestically and abroad, which will drive the company towards achieving its stated long-term goals,” he said.

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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.

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For most car companies, February tends to see low numbers; for one thing, it is the shortest month in the year and some years, the Chinese New Year festive period also occurs during the month, reducing the number of working days further. However, for Proton, February 2021 was a productive month as the Malaysian carmaker reached market highs that it had not achieved for several years. With a total volume (including exports) of 11,873 units, the company had its best February in over a decade.

By its estimation, the brand will have a market share of 27.1%, which will be the highest for the company since September 2013. Overall, Proton also believes it finished the month ranked second with sales nearly doubling that of the month before. Compared to the same month in 2020, the volume was 19.9% greater. However, the total volume for the first two months of the year is 3.5% (643 units) less than last year’s cumulative total for the same period.

X50 deliveries accelerate
Proton’s second SUV, the X50, was in showrooms from October 27, 2020 and the response was exceptional strong. By year’s end, over 30,000 bookings were collected. Unfortunately, deliveries were hampered by delays to the production schedule as well as focusing on build quality. In February, Proton delivered 3,345 units bringing the total number of X50s on the road to 8,141 units.

This monthly volume was also the highest ever achieved by an SUV in Malaysia,  and Proton therefore lays claim to the X50 being the best-selling SUV in its segment and also overall leadership.

Add the 1,475 units of the X70 delivered in February (claimed to be the highest for a C-segment SUV), and the company sold a combined total of 4,820 SUVs. This is its best ever performance and said to be the highest volume for any brand in the country.

Strong sales for other models
While the X50 had strong sales, the evergreen Saga continued as the company top-seller with 4,217 units delivered. The sedan has also started sales in Kenya as a locally-assembled model, the first time Proton has entered the market of that African country.

Other Proton models that performed included the Persona (1,818 units) and Exora (361 units), with the latter model maintaining its leadership in the C-segment MPV market.

“February continued to be a difficult month for Malaysia’s automotive industry but it turned out very well for Proton,” said Roslan Abdullah, Proton Edar’s CEO. “thanks to the efforts of the government to ensure a continuation of economic activity during the MCO, we were able to produce more cars and, in so doing, started to clear our backlog of orders. This is important as we need to consistently deliver on the bookings made to avoid a rush before the PENJANA incentives expire at the end of June this year.”

“The automotive sector continues to be vibrant with exciting new model launches which are sure to spark consumer interest and create healthy competition. But we will continue to be cautious even as we push forward to avoid infection rates flaring up again and disrupting operations,” he added.

One of the four Special Edition models launched in February

February also saw Proton launch four Special Edition models, all with a bold black theme. The Persona and Exora Black Edition as well as the Saga and Iriz R3 Limited Edition were unveiled online and will be available in limited numbers. Encik Roslan revealed that, as of February 26, 1,169 bookings have been received, about a third of the total production run that will be just 3,500 units.

Aftersales revamp
Proton has a 10-year strategy and during this period, the company is to completely overhaul several operational areas in order to succeed. An area of immediate importance is product quality which has to be improved and today, the brand’s quality scores have improved to the point of almost matching those of its partner, Geely.

The distribution network has also drastically changed, with the company having the most 3S/4S outlets in the industry. Its focus is now on wholesale activities rather than consumer-driven business. These measures have been effective with Proton posting some of the highest sales growth numbers for the local industry over the last 2 years.

This year, the focus is on the improvement of the entire aftersales value chain so that customers can enjoy a premium brand experience after buying their cars. “Proton admits that some aspects of our business have not been able to keep up with our recent successes. While we have dramatically moved forwards in product quality, brand image and the technology offered in our cars, our aftersales service has not made the same leap. This situation was exacerbated in 2020 by firstly COVID-19 and then our decision to invest in a completely new back-end ordering and delivery system,” explained Encik Roslan.

“As a result, we have experienced integration issues and customers requiring accident repairs as well as regular servicing have faced delays. We are working on these issues around the clock to overcome them in the shortest time possible but for now, I urge all Proton owners facing delays to please contact our customercare hotline at 1-800-88-8398,” he advised.

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With the government providing the incentive of exempting sales tax (10% for locally-assembled models, 5% for CBU models), it seems that there is strong interest in buying new cars despite the gloomy situation we are experiencing.

Companies selling new as well as used cars are reporting strong sales and for Proton, the volume in October was reported to be 11,392 units (including exports), which it estimates to be a 21.3% share of the market’s Total Industry Volume (TIV).

The volume was a 20% increase over the same month in 2019 although it was 4.6% lower than September’s. However, according to Proton, three of its models were leaders in their respective market segment – in the B-segment with the Persona (2,360 units); SUV segment with the X70 (2,216 units); and the Exora which retains its customary position as the best-selling C-segment MPV.

The Exora remains the most popular model in its segment despite being around for many years now.

Strong H2 performance overall
“The recovery of Malaysia’s automotive market is continuing to gather pace judging by the number of new model launches and total sales in October. We estimate the Total Industry Volume to be the second highest in 2020 with over 57,000 units sold, proof that the car industry is rebounding strongly,” said Roslan Abdullah, CEO of Proton Edar, adding that the numbers could have been better for Proton.

“Looking at the numbers, we noticed a significant drop in East Malaysia sales while the Central region was static compared to September. Part of this was due to the implementation of the Conditional Movement Control Order (CMCO) to limit the movement of people, thus affecting retailers. But there was also a sense of customers holding back before the launch of our newest model, the Proton X50. Regardless, PROTON is confident of ending the year well and using the results as a base to aim even higher in 2021,” he explained.

The X50 has made a strong impact on the market which has responded with over 27,400 bookings to date.

Bookings for Proton X50
The long-awaited X50 SUV was officially launched towards the end of October and over 27,400 bookings have already been received nationwide. The first 447 units have already been delivered to customers and further deliveries are ongoing.

We are pushing to ensure fulfilment over the last three months of 2020, while continuing to emphasise product quality,” Encik Roslan assured.

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).

Proton

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.

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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.

Proton Saga

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.

Proton X70

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.

Proton Persona

Proton Exora

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.

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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.

Proton Saga

Proton X70

“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.

(more…)

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…)

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