Perodua Sells 207,000 Units, Market Share Up to 35.7% Through 2016

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Perodua Sells 207,000 Units, Market Share Up to 35.7% Through 2016

2016 wasn't a great year for automotive manufacturers in Malaysia. Sales were down across the board, but there's always a little bit of flexibility that companies can use to accommodate for the fluctuations in sales with the economy. Perodua is one company that has adapted well to the ups and downs of the market, as shown in their recent press conference regarding their performance through 2016. 

For the eleventh consecutive year, Perodua has maintained their position as the country’s most preferred automotive brand. They have grown to a market share of 35.7% for 2016, even with the general glut in the automotive sector. Going into 2017, they are aiming for a slightly lower market share of 34% and aim to sell 202,000 vehicles through this year, as the TIV is expected to see a 2% growth to 590,000 units up from 579,600 through 2016.

On the international front, Perodua saw export volume grow to a healthy 6% in 2016, up to 4,700 units from 4,400 units in 2015. 60% of these exports are to Indonesia. As a rather surprising side note, the Axia is the best-selling compact hatchback of ASEAN, purely because of its Malaysian sales.

But more than merely moving product and changing their market share, Perodua has consistently been working towards improving their brand on the whole. This means that they have to support the customer from start to finish, and that starts with CSI and SSI ranking. They stand at #6 for SSI (sales satisfaction), and have moved up to #8 for CSI (customer satisfaction). This is also reflected in their after warranty intake ratio, which is up to 32% from 29% in the previous year.

On the service side, they have gone from roughly 1,964,000 units to over 2,030,000 units intake in 2016, representing a 3% increase. Revenue from this has gone from RM 600 million to RM 682 million, or a solid 14% increase. Parts and accessories saw an increase of 7% to RM 266 million. All of this increase in income has also seen a group capital expenditure of RM 492 million, which is 26% more than 2015. This comes even though volume of production is down by 7% versus 2015, with roughly 213,000 units made.

For this year, the targets are fairly ambitious- but Perodua is focused on everything except increasing sales volume and market share. This is a solid strategy as they don’t predict the market is going to get much better this year, and instead have chosen to focus on their existing customers and work on improving that key user experience. They hope to go up to #5 for SSI and CSI rankings, with a hopeful increase of 1% for service intake and 3% for service revenue. Parts and accessories are expected to increase revenue by 2%, while group capital expenditure is expected to top out at RM 557 million, or 13% more than last year. All of this comes with a 7% reduction in production volume, a 2% projected reduction in sales volume, and a 1.5% projected reduction in market share.



Aswan

Aswan

Writer

Places more value in how fun a car is to drive than outright performance or luxury. He laments the direction that automotive development is headed in, but grudgingly accepts the logic behind it. Can be commonly found trying to fix yet another problem on his rusty project car.


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