The introduction of GST had very different effects for various carmakers. Some managed to reorganize their supply chain and drop the prices of their products, while others suffered from marginal to noticeable increases in prices. On the whole, the total industry volume of production dropped as a result: in March 2016, TIV was down by 29% compared to March 2015.
Even with the overall drop in TIV, Perodua’s reduction in sales are less than the competition. This first quarter saw a decline of 17.4% in sales, down to 47,200 units from 57,200 units. On the after-sales side of things, Perodua has seen an improvement of 7%, now catering to 515,343 intakes over the first quarter. Parts and accessories revenue has risen to RM 65 million, or a 4% increase.
From a production standpoint, Perodua has cautiously reduced their plant output to 48,300 vehicles through this quarter, down from 60,100 vehicles in the first quarter of 2015. Part of this is due to leftover stock from the end of 2015 that had yet to be cleared, while the brunt of the rationale is following the decline in car purchasing.
And yet despite this slowing market, Perodua managed to export 1,600 Myvis and Alzas to Brunei, or 55.8% more than last year’s first quarter results. Perodua believes that they will still be able to hit their sales target of 216,000 by the end of 2016, optimistic that the market will regain momentum.