vehicle production Archives

Proton Sales Improve As Production Stabilises

Although it had a slow start to 2022, Proton’s production has now risen substantially and in August, deliveries totalled 15,880 units (including export sales). It was the best sales month for the Malaysian carmaker since July 2013, 109 months ago.

Cumulatively, for the first 8 months of the year, sales of Proton vehicles reached 87,481 units, a 39.7% over the 62,637 achieved between January and August 2021. By Proton’s estimate (based on the expected Total Industry Volume of 66,900 units), that would give it a market share of 19.5%, with the August numbers alone taking the share to an estimated 23.7%.

The company remains focused on ending 2022 with a fourth consecutive year of volume growth.

Sales leadership
Despite the recent launch of new direct rivals from other brands, Proton has maintained its position at the top of the SUV segment. The X50 reached a third consecutive month where deliveries crossed the 4,000-unit level with 4,329 units delivered in August. It’s the first time an SUV has achieved such a feat in Malaysia and comes on the back of its industry record with 4,763 units in July.

*Click here to find out how you could win a new X50 by just spending RM30.*

The larger X70 contributed 1,555 units in August, bringing Proton’s total SUV sales for the month to 5,884 units. The cumulative volume for 8 months is now at 37,489 units.

On the passenger car side, the Saga also benefited from improved component supply as 6,156 units were delivered last month. Demand for the latest Saga remains high and total deliveries have exceeded 14,000 units since its launch in May this year.

The biggest beneficiaries of the increase in production volume were the Persona and Iriz. 2,612 units of the Persona were delivered nationwide, the highest number since February 2020. For the Iriz, the 962 units delivered were at a sales level not since April 2021.

Stabilised production
“With four months to go in 2022, Proton’s production operations have stabilised. Critically, our component supply is now more consistent and better managed to ensure we can produce as many cars as possible. With that in mind, we have undertaken an initiative to increase the number of delivery trucks by over 100% by the end of the year. This makes it easier to ensure our dealers receive their stock as quickly as possible and, in turn, this benefits our customers who have been patiently waiting for their vehicles,” said Roslan Abdullah, Deputy CEO of Proton.

Proton Edar to sell electric vehicles from Q4 2023

May new vehicle sales fell to less than 50,000 units due to production issues causing supply shortage

*Source: Monthly reports of the Malaysian Automotive Association (MAA).*

The Total Industry Volume (TIV) of new sales in May was 12% lower than the TIV for April, dropping below 50,000 units. Contributory factors were the reduced number of working days due to the Hari Raya Aidilfitri holidays but of great impact was the shortage of new vehicles to deliver.

Many car companies have a large number of orders but cannot fulfill them as the auto industry continues to be affected by the global microprocessor shortage and logistics delays. As the microprocessors are essential for the many electronic systems in today’s cars. their inavailability means the cars cannot be completed.

Compared to the same month in 2021, the TIV this year was 5% higher and when the cumulative volume for the first 5 months of 2022 is compared to the same period in 2021, the deliveries are higher by 7.4% at 264,656 units.

Although there is the microprocessor shortage and other issues affecting production, the assembly plants around the country were able to produce 16% more vehicles than for the same month in 2021, This year, total output was 49,154 units, made up of 45,518 passenger vehicles (excluding pick-up trucks) and 3,636 commercial vehicles (including pick-up trucks). The latter segment saw a bigger increase of 54% in volume compared to May 2021.

The Malaysian Automotive Association (MAA) expects sales in June to be higher. With no further extension of the sales tax exemption confirmed, many car-buyers will be rushing to place their bookings before the end of the month when the exemption ends. However, the Finance Ministry recognises that the industry has been having difficulties supplying vehicles to meet the backlog of orders and will allow those who book before June 30, 2022 to enjoy the exemption even if they do not get their new vehicle by then. However, they must get it registered by March 31, 2023.

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%

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.

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.

Summary of New Vehicle Sales & Production – February 2021

After a slow start to the new year, new vehicle sales jumped 30% in February as the buying mood returned, pushing the Total Industry Volume (TIV) to 42,784 units. Of this number, 4,861 units were commercial vehicles )including pick-up trucks). The segment volume was 30% higher than last year, possibly because a year ago, concerns about the pandemic were growing and businesses would have suspended purchases as a precaution.

The higher TIV was also attributed to the easing of the Movement Control Order in some states, making it possible for customers to go to showrooms if they wished. However, many companies have made a big push towards online marketing and have many processes which replace traditional practices where the customers had to personally come to the showroom.

2021 Proton Iriz R3 Limited Edition — *Launch of the Iriz R3 Limited Edition (pictured) and Saga R3 Limited Edition, as well as Special Editions of the Persona and Exora generated excitement in the market in February.*

The backlog of orders for some models also contributed to the increase in new vehicles registered in February. Late last year, sales were brisk and popular models were in short supply and just as when there was the GST-free period some years back, the plants could not ramp up production quickly to meet the sudden rise in demand.

The response from the production side seems to have gained momentum as February output of 45,199 vehicles was a 14% increase compared to January output. And compared to the same month in 2020, the output this year was 12% higher, with commercial vehicles registering a jump of 57%.

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

For the month of March, it is likely that the TIV will still be climbing, especially if the pandemic situation keeps diminishing in severity and public confidence becomes stronger. March is also the final month for some companies to make the final push to get the best business results for their financial year which ends on March 31.

The appeal of new models being launched will also bring more sales to companies like Perodua which began deliveries of its new Ativa SUV in early March. At the time of writing, we are aware of a couple of other models that will be launched this month too so there should be higher consumer interest which will continue up to the Hari Raya festive period.

Volkswagen’s Transparent Factory to become the ‘Home of the ID’ all-electric model

Volkswagen’s Transparent Factory, located in Dresden (which used to be in the former East Germany), began operations in 2002 making the company’s Phaeton luxury sedan. At one point, it was also used for production of the Continental Flying Spur by Bentley, which is part of the Volkswagen Group. The unique factory, with glass walls, also assembled the e-Golf.

Now, it is making the ID, Volkswagen’s range of all-electric vehicles. It is the second production site for the ID.3 and already the fourth site in the world producing Volkswagen models based on the Modular Electric Drive Toolkit (MEB). Over the coming years, the former ‘Centre of Future Mobility’ will steadily transform into the ‘Home of the ID’.

Showcase for mobility of tomorrow
“The Transparent Factory plays an important role within the Volkswagen brand. Here, visitors, customers and guests come into direct contact with the mobility of tomorrow. We are a production plant, tourist attraction, event location, test lab and delivery centre – all in one. With the start of the production of the ID.3, we are giving the green light for our strategic realignment,” said Danny Auerswald, Site Manager of the Transparent Factory.

An additional focus of the strategic realignment is the development of a research and innovation site that drives innovative projects on a pilot scale for later use in large capacity sites at Volkswagen.

Holistic experience
As it was before, the Transparent Factory offers customers, visitors and guests a holistic experience of the ID. family – from initial advice and test drives, to production visits, co-constructing the ID.3 and modern event formats, up to the handover of the electric vehicles.

The first ID.3 rolled off the assembly line recently, and as with the start-up of the e-Golf in 2017, the production of the ID.3 will also start with one shift and 35 vehicles from Monday to Friday. Visitors can tour the factory from Mondays to Sundays.

*The Transparent Factory, located in the former East Germany, also offers tours to the public and customers can collect their vehicles there as well.*

In future, significantly more vehicles will be handed over to customers in the Transparent Factory. To that end, a second delivery point was recently set up in the factory – which is unique in the automobile industry. The number of vehicle handovers to customers is expected to increase from 1,301 in 2019 and 3,296 in 2020, to more than 5,000 vehicles in 2021. The goal is around 9,700 deliveries a year by 2022.

Conversion of the factory
At the beginning of 2021, the production area of the Transparent Factory was converted to meet the requirements of the MEB. The first conversions for the ID.3 already took place in summer 2020. As one of seven stations, the ‘marriage’, where the body and chassis are bolted together, was adapted. The conversion measures include, for example, the installation of a system on which the panoramic roof is fitted and for the adaptation of the gripping devices for installing the cockpit and seat system.

*The factory produced the Phaeton as well as Bentley Continental Flying Spur (above) and e-Golf (below).*

Fourth MEB factory
The Transparent Factory is already the fourth site in the world producing Volkswagen electric cars based on the Modular Electric Drive Toolkit. At the end of 2020, the Chinese sites in Anting and Foshan also started production of MEB vehicles. Together, the two plants in Germany and two plants in China have a maximum production capacity of more than 900,000 vehicles a year. Two more sites in Germany and one in the USA are also preparing for MEB production.

The topic of Production 4.0 will also be driven forward in the Transparent Factory. The guiding principle is the automation and digitalization of complex operations within assembly and logistics. Specifically, the factory will act as a planned pilot plant in the company for the development and application of new technologies in volume production processes.

To know about Volkswagen models available in Malaysia, visit www.volkswagen.com.my.

2020 Volkswagen ID.3 makes global debut

New vehicle sales start final quarter on high note with 21% increase in Total Industry Volume

New vehicle sales for October – the first month of the final quarter of 2019 – began on a high note with a 21% increase over the Total Industry Volume (TIV) in September to 53,870 units. This volume was also 14% higher than for the same month in 2018 although a comparison may not be right since it was after the GST-free period when sales had seen a huge boost and the market slowed down in the first few months after that.

The Malaysian Automotive Association (MAA) attributed the increased TIV to more selling days as well as more working days. When there are many holidays, there is also disruption in processes such as registration and loan approvals, delaying completion and affecting deliveries.

Oct 2018 - Oct 2019 Sales — *Source: Monthly reports of Malaysian Automotive Association*

By segment, passenger vehicles (excluding pick-up trucks for personal use) accounted for 93% of the TIV in October, a 16% increase over the same month in 2018. However, commercial vehicle sales were virtually unchanged with 4,883 units (including pick-up trucks) delivered.

The cumulative TIV after 10 months of this year reached 496,861 units which was 5,267 units lower than for the same period in 2018. The higher TIV last year was due to the 3-month GST-free period which saw an above-average surge in monthly sales as buyers could enjoy significant savings (especially for the more expensive models).

Production
The assembly plants collectively produced 55,775 vehicles in October, compared to 51,789 vehicles in the same month in 2018. The increase was largely in the passenger vehicle segment while the commercial vehicle segment declined.

Cumulative production for 10 months was 481,816 units which was 97% of the cumulative sales volume but this direct comparison may not be entirely accurate as there would be an overlap in stocks and imports. Popular models may leave the plants within days of being completed but there may also be vehicles which don’t move out so fast (although the plants would not want them around too long either as they take up parking space).

With two months left to the year and a forecast of 600,000 units for the year by the MAA, it means that sales in November and December must average 51,569 units. This year, 5 months have seen the TIV above 50,000 units and it’s often the case that there is such a big boost in December that the forecast is met.

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