Perodua held a media briefing yesterday evening to announce its sales results for the first half of 2014. The Malaysian market leader has maintained its top position in the period of January to June with 94,500 units sold, which translates to a market share of 28.4%. That’s based on an estimated total industry volume growth of 6.2% to 332,800 units.
“Despite maintaining our position, there has been a minor erosion of our market share to 28.4% from 30.9% in the same period last year,” said Perodua president and CEO Datuk Aminar Rashid Salleh, who pointed to intense competition from industry players (foreign brands, not Proton) and the tightening of financial guidelines as reasons.
Because of the above, and despite a new model coming out “after Raya but before Christmas” (making it a four-model range), Perodua has revised downward its 2014 sales target to 193,000 units, 4,000 lower than the original 197,000. “Competition is far more formidable than previously expected,” Aminar said. Perodua sold a record 196,100 units last year.
The H1 title defence was led by strong demand for the Myvi and Alza facelift, as sales of the Viva tanked. As the cheapest new car in Malaysia, the Viva was most affected by the higher rejection rate for hire purchase loans, as banks implemented a stricter responsible lending policy. Stocks were mounting, and holding costs were increasing, leading P2 to slash Viva prices by up to RM5,300 last month. The last ditch tackle is working as intended, we hear.
The company has been tight-lipped about the “Perodua Axia”, despite having to face a barrage of questions about the upcoming new model at every press conference. Here’s what we know so far.