If you haven't heard news of Perodua's strong sales performance by now, you must be living under a rock. Demand for their models is relentless, with a robust model range and well positioned and priced products spurring bookings and sales. If you have a general understanding of the business of building cars - or any manufacturing and assembly process - you will also understand that supplier co-operation is critical in getting cars rolling off the line on time.
The Perodua Suppliers Association (P2SA) is highly encouraged by Perodua's growth of 9.5% through the first four months of 2019, up to 82,700 vehicles from 75,500 vehicles. “As the representative for all 125 automotive component suppliers to Perodua, this outlook works well for the ecosystem, despite the pessimistic outlook of the automotive industry in general,” said P2SA President En Musa Zahidin Tan Sri Ahmad Zaidee.
On average, Perodua models have over 90% local content, which means that trickle-down economics work to great effect. For every Perodua sold, up to 125 different suppliers will be getting a small percentage, and in turn you will be supporting Malaysian employees as well. Perodua assists suppliers as well, in helping to invest in mould and tooling requirements which lowers the overall financing costs for their members.
This was a cost that was never passed on to the suppliers, and with the stress of financing taken off the table it promotes a healthier relationship between the manufacturer and its suppliers. “A prime example of how Perodua assists and supports local suppliers is its investment in the mould and tooling requirements, which has reduced the overall financing costs for our members. This began when the Perodua Axia started production in 2014 and has been done for every other model since,” En Musa said.
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