It was mostly good news at Perodua’s 2015 performance review event this morning, where the company revealed that it had sold a record 213,300 vehicles last year, translating to an estimated 32% market share. That slice of the pie (up 3%, highest since 2007) also means that P2 has topped the Malaysian auto sales chart for a full decade. After-sales and accessories divisions also broke internal records.
However, one slide in the presentation stood out because it had a dipping line. Pictured above, it shows that foreign brands have outsold national makes for the second year running, and the share is split 53:47 in favour of the non-nationals, according to Perodua’s estimates (official 2015 sales figures from the Malaysian Automotive Association are not out yet).
The market share decline of national makes is no sudden phenomenon, and is largely due to Proton’s fortunes as Perodua has been relatively consistent in holding around 30% share, and pole position. Proton controlled over half of the domestic market back in 2001, but now commands less than a third of what it used to enjoy.
Put together, the local players’ share of the market has seen a steady drop over the years, but the point where they surrendered the lead to the non-national makes happened in 2014. Couple this trend with the rise of Honda in 2015 (now the leading foreign brand ahead of Toyota) and you get a shrinking national market share that not even P2’s record sales can arrest.
Observers would say that it’s the inevitable effect of liberalisation. But this trend is not good for the local automotive ecosystem, Perodua argues.
“While we understand the government’s intention to liberalise the automotive industry in the near term, we believe that the country’s automotive eco-system, consisting of local vendors and dealers, as well as original equipment manufacturers like Perodua, has yet to reach a point where we can fairly compete with other established global brands,” P2 chairman Tan Sri Asmat Kamaluddin said the official opening of the Perodua Global Manufacturing plant last week.
“This is because we have yet to reach the level of maturity, in terms of economies of scale, cost competitiveness and even quality, which other established global brands. If the percentage continues to slide to below 45% then many of the local dealers and vendors may have to cease operations and this will have a negative impact on the economy as a whole,” added Asmat, who is also the group chairman of Perodua stakeholder UMW Holdings Berhad.
The point was reiterated by P2 president and CEO Datuk Aminar Rashid Salleh today. He also revealed that Perodua purchased a whopping RM4.9 billion worth of parts and components from local vendors in 2015, up 26% from 2013, although the total is expected to fall slightly to RM4.6 billion in 2016. All of Perodua’s current models – Axia, Myvi and Alza – have a localisation rate of over 90%.
Perhaps the outspokenness of Perodua’s top brass on this matter stems from the increased “responsibility” on the company to support the local vendors as Proton flounders. Something that isn’t very welcome in the current climate, where forex has impacted the remaining 8-10% of imported components (Axia engine components in USD, Myvi/Alza parts in JPY), negatively affecting profitability by 25-30%. Also, consumers are increasingly opting for lower end variants, where margins are thinner.
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*smiles*
Malaysia Boleh!
See below and you will know why Proton has lost so much market share. We have given enough support to Proton for 30 years now. Every family has at least bought a Proton in their life to support Proton.
We supported the company so much from 1985. Now it is doing badly because their workers are MALAS.
Japanese workers :
“We must work hard. We must focus in our work. We take pride in our products and must deliver excellent quality. Only then, we can enjoy our remuneration for the hard work done. We must aim to be more hardworking than our other Japanese car plants”
Proton Malaysia workers:
“Rilak lah bang, buat apa nak keje ni. rilak lah, nanti boleh buat. Letih lah ni, mari meh tido sekejap kat bilik stor, boss takde ni. Eh tengok awek kilang cun tu, bezz lah dapat kongkek dia. Syiok. Jom lah, mari pegi kantin minum teh dan makan kuih lapis. Tak payah keje kuat ni, kerajaan nanti tolong. Buat apa keje kuat ni?
When there is problem happened
Japanese worker:
“Apologized for the issue, we will analyst and rectify the problem. If the problem involve more user, we will announce recall to fix the problem for all.”
P workers:
“Ni memang macam tu bro.Rilak la bro…you can’t expect we inspect every car as we produced thousand a day tau.Eh…time for teh tarik again…jom mari mari”
Good cars, everyone buy it, that’s why you see Perodua make sales records again. Poor quality like junk, discount RM100k also no one bother. Everyone waiting to see when it close shop.
Rolls Royce also low sales. Maybe it’s the bank loan fault too.
Lexus also low sales. Maybe it’s the bank loan fault too.
Proton is just not a focussed company. Proton and Hyundai started about the same time. Hyundai car manufacturing (not Hyundai as a whole) maybe started about 8 years earlier. Just see where both companies are.
Hyundai is a global player. They sell about 7 million cars per year globally. They are No 4 in world rankings for car sales. Toyota is No 1.
Proton, which stated about the same time, with MITI 100% protecting them and forcing 30 million rakyat to buy their cars, all Government departments strictly told to buy only Proton every year, PDRM also strictly told to buy Proton every year, Bomba, Telekom Malaysia and all GLC also told to buy Proton every year and yet, it can go into financial difficulty and about to be bankrupt.
Every year also Spanco buys berpuluh puluh ribu Protons to lease to the government.
How can Hyundai and Proton be so different. Both started about the same time. Korean government also initially protected the local auto industry but later allowed free market forces. How can they do so well Globally?
Something is wrong with Proton. It needs to be shut down. Given so much of help and still also now sucking the Government big time.
Even in private DRB hands also, every year, Proton quietly sucks billions from our LHDN in the disguise of R&D just to keep the company afloat.
Well said!
Kasi BUNGKUS PLOTON
Seriously ah? Korea and japan open market ah?
you must be kidding
U think US open market ah? so open ah?
all sorts of difficulty to get in, an when you’re number one they cook up story about accidental acceleration
want to buy out their company? cannot, sensitive technology
puiiii
Here got haters by the truckload lah,
why don’t you try to be different and be fair and sensible instead….
really dude, you do realize Hyundai founded in 1967 have been making locomotive, Tanks, submarine and they have enter automotive way before Proton did, go read wiki la, some people are just too damn stupid simply copy and paste without even a proper research https://en.wikipedia.org/wiki/Hyundai_Motor_Company
This is good news. Customers should pressure them more to buck up and reduce price. Same for non national car too.
Lets continue using our current rides and avoid buying any new cars (national abd non national) and avoid buying from grey importer or AP kings.
Buy second hand. If we do this together, whatever ministry, policy makers, MAI, MITI, banks, MAA statenents will become irrelevant. Stock will not moving, inventory will go up and finally customer will control the market and price.
When the buying stop, the killing can too.
If we work together, we can win this
Impossible lar….. Malaysians, maintaining face very important. Complain alot only, but at the end, still record car sales here and there….
Agree with you, I just bought second hand Myvi.
agree. i just bought 2nd hand F10.
Looking for
1. Safety
2. Reliability
3. Fuel Saving
4. Comfort
You won’t go wrong with our Prius C, only worth RM60k for used unit now.
Some ignorant Proton fanboys may say it is powerless, but it actually beat all non-turbo Proton with its 10.5s.
Why new Prius C so expensive? Thanks to Proton!
If proton wants to succeed their staff and vendors need to buck up and stop spending too much time trolling on the internet.
Empty showroom no visitors memang boring bro.
Sam Loo lagi boring no customer
This is like MAS. Every single Government department is told to fly by MAS and using mainly Business Class. And yet MAS can go bankrupt.
Proton is the same. Every single Government department is told to buy Proton. Spanco alone buys berpuluh puluh ribu per year to lease back to the Government at a super high price. then every Ministry, Kementerian, Bomba, Telekom, JKR, Syabas, Tentera, TUDM, TLDM,PDRM, Askar… and hundreds more departments are told yearly to strictly buy mainly Proton.
With all this paksaan also, Proton sales can drop.
How is this so??
Hidup segan, mati tak mau.
Who else can rescue them other than those cash rich China car companies. Lelong sama BYD or Dongfeng is enough lah.
Just like the Ringgit currency, Proton is falling down hard!
Best of luck in achieving 13% or less market share this year, Proton.
substitute National/Non-national with BN/PKR and the graph will be almost the same :p
Perodua = Kipidap!
Proton = Karipap!
Well-written informative article.
“This is because we have yet to reach the level of maturity, in terms of economies of scale, cost competitiveness and even quality, which other established global brands. If the percentage continues to slide to below 45% then many of the local dealers and vendors may have to cease operations and this will have a negative impact on the economy as a whole,” added Asmat, who is also the group chairman of Perodua stakeholder UMW Holdings Berhad.”
Look, without Proton and Perodua, and a liberal automotive policy, Malaysia would be the clear hub for automobiles just as it is for almost all manufacturing in SEA.
You can close shop tomorrow, save our taxpayer money and open up the car market. We already assemble 100,000 foreign-brand cars today in Kulim, Pekan, etc. Proton and Perodua can disappear tomorrow and there’ll still be market for domestic parts manufacturers, many of whom are supplying to Inokom in Kulim.
Don’t for once believe this nonsense about ‘protecting’ local dealers when it comes from Proton,Perodua.
Lets not forget that these parts suppliers are also supplying the non-national makes as well. Perodua would like to trick us into believing that only them and Proton can keep these suppliers in business.
Ya la….. tricks everybody with 3 months warranty lawya parts which came from backstage factory that support the tipu kiri tipu kanan workshop corners.
We Should buy part from OEM company at 4S center which will cost about more, a year warranty, and its original parts….
Don’t try to misguide others..
To buy Perodua is to boycott Proton.
all i can say is… all the best to Proton in 2016.
“Oh noes, this will be bad for local car industry!” – no one
when Hitler create Volkswagen ,(that right Hitler) he do so because car are so expensive only super rich afford it. he creat German automotive industry hence alot of new job. the first car is Volkswagen beetle which is the most cheap car at that time. even cheap the car build to last. now vw own Lamborghini, audi, seat, skoda and ect, they still producing affordable, quality car. now compare thar to Malaysia automotive industry Dr.m creat proton to produce cheaper car, but fail. hence force foren car to increase they price. interesting they manage to sold saga at UK as the cheapest car. proton has so bad reputation for production low quality car,(check when uk,austrilia review proton car they recommen viewer to not buy proton cause the quality so bad,FC is so high). proton suck fund from gov for RnD , to develop “global” car and hybrid which they fail.
Kicking out Suzuki off the market? Even Hitler will have mercy and not do it.
he talks as though foreign brands doing assembly here don’t take supply from local vendors, don’t hire locals in their factories, don’t contribute to the local economy. Not to mention that perodua is a national car ASSEMBLER , they don’t make ground up models.
Basically if i don’t do well, i want everybody to fail also, nvm if it means local people lose their jobs.
Liberalization is win-win, more people get jobs, we get cheaper cars.
“Basically if i don’t do well, i want everybody to fail also, nvm if it means local people lose their jobs.”
Dengki much?
That happens a lot here now isn’t it.
That has always been the rot here. If I can’t do better than my neighbour, I will do everything possible to sabotage them…..even to the extent of breaking my own rice bowl.
Even if Perodua’s vendors are local, I’m sure that the vendors themselves are not immune to the fall in the ringgit. Plus Honda and Toyota (non-nationals) also have local manufacturing facilities, which also contributes to the local economy. #justsaying
Nice nickname there dude. XD
Thanks :)
just wanted to thank the paultan team for releasing the market statistics once again!
Isi tersirat:
-Proton held more than 50% local market share at one point, while Perodua is nowhere near that.
-Perodua still wants to be protected.
-Perodua admits they’re quality is low.
-Perodua admits to conning consumers with high spec variants so that they get more profit.
Isi tersurat:
Perodua makes crappy cars…
hidden msg:
Macamlah Proton tak kurang jahanamnya.
Just bring back maximum 5 years loan repayment, you will see Proton perodua overtake non nationals.
This i agree – heck it might even force house prices down somewhat
Excellent. I sincerely wish and pray that market share of Proton will fall to 10% by end 2016 and single digit by 2017. Proton please launched more models of yours (garbage) so you can close shop faster! We are cheering and celebrating for your extinction.
Both hands and legs up.
If its happen in 2017 I will take 1 week off celebrate it party drinking nonstop yahooo hoorayyy woohooo dingdong the devil bully is gone dingdong!!
No problem. If sales go south, proton will give excuse and blame banks for not giving loan to ppl.
hahahaa. Proton always give excuse. Always ask extension of time. Always say “little boy still learning”. Alway need protection….Alway refuse to grow up. Always syoik sendiri and prefer being delusional….
Lousy car always dies off
Losers always give excuses and blame everybody but themselves as proven by P1P2 CEO..by his arrogant speech alone i shall boycott P2 for eternity
Time for the excuses to increase the price of national cars.
I am so happy! MY PREDICTION CAME TRUE! Since the begining of 2015, I have been saying Proton’s TIV share will drop to 15‰ in 2015. I even name my avatar “Proton achieving 15‰ TIV in 2015” ! You can google it, I have been predicting this not long after Iriz was launched.
Throughout the year, fanboys, irrational blind supporters, donkey butt licker has been attacking me. Now who’s proven right? I speak with facts and figures, not some twisted logic and emotional arguments. Now they can’t deny my fact, John the BN cybertrooper even try to spin further, saying sales figure is not important??? LOL Hell yeah, according to fanboy lickers twisted logic, you can sell badly, lose money and still able to thrive in a business. I bet John has a 2.6 billionaire grandfather who can support his syiok sendiri, failed business adventure, just like Proton! As for the MAJORITY, avarage Malaysian, we don’t have a 2.6 billionaire grandfather who can donate money to us. So we cherish our money and stay away from Proton.
Where are the fanboys? Where is a the bu-ha-ha, jaguh kampung euphoria whenever Proton launch a new model?
I like facts and figures, they are solid slap-on-the face for people living in denial. I just can’t keep smiling, it is so rewarding watching that blue line keep on slumping to the bottom in that graph. Come this year, I have changed my avatar to “Proton achieving 13‰ TIV in 2016”, for obvios reason.
Come on Proton! I support you! Launch more new models, please make more new “High-tech GDI” engines, use more fund to make undesirable cars so that you’ ll slump even faster. Don’t dissapoint us, make it happen! I love you Proton, let’s make yourself the MINORITY share in your home market, and towards single digit TIV in 3 years time. I believe in Proton! Yes Proton can!
Couldn’t care less, Proton is not my father’s company.
If Proton is successful, fine, if not, doesn’t bother me.
Yeah same goes to oil price, dun mind if the price is plummeting, said bozoman
Kudos to you!
As usual the Proton blind kids are missing when its negative news.
My prediction is total bankruptcy and cash flow crunch by Oct 2017. Lets hope for the best for the country and all our fellow Malaysians.. the demise of Proton!
From a true patriotic Malaysian!
You’re spot on. Actually the “real” Proton’s market share is below 15% already and you can celebrate already. Reason is many are bought by various govt department such as police, customs, taxi etc… From the stats, it is clear that Proton is no longer a desirable car for many Malaysians.
I remebered thepotong CeO boasted they will sell TIv of 500,000 cars annually or someting similar..just two years ago or even last year he said tat and at that time the whole TiV just 500,000 to 600,000..where is the fella hiding nw?
Correction. That was MAI chief. He announced proposal car scrap programme and it will increase car sales in huge margin to 700k cars. He said that before MITI minister Tok Pa (his boss) have any idea about it. In the end the whole crap was scrapped for good.
Really a joke lah. Just like that NAP, EEV policy until now not up to expection as carmakers still stick to Thailand and invest more in Indonesia instead. And what the hell Indonesia wanna do its another national car with struggling Proton when Emseka brand still there. Fail to plan is plannng to fail indeed.
Oh yeah that Asean car project. Seriously? How are you gonna sell it when entire Asean carbuyers regard Toyota as its national car? It seams that someone trying to sell its delusion of national car falsehood on larger scale across Asean market. Stop the insanity please.
This so called Proton and the sohai Perodumbass should shut down completely and cease to exist like the rest of the world including Thailand, Indonesia and Japan.
Proton: Disgrace to Malaysia and the world
Perodua: Disgrace to Toyota and Malaysians
Dear Proton:
In Sufi teaching, each student receives advice and lessons appropriate to his own case and his degree of development. The Sufi tales, or teaching stories, constitute the keystone of this deep spirituality.
Mahmud did not know how to live his life. He took advice from a Sufi sage, “Go into the forest, Mahmoud. Learn from the wild that will give you a life lesson” Mahmoud obeyed. In a bush, a fox was laying, belly full and well. Yet he has no legs. Mahmoud was puzzled. “How does that fox manage to eat? How could it be so healthy?” Willing to understand, he kept watching silently. After a while, Mahmud saw a bear killing a doe, noisily devours before abandoning the carcass.
Then the fox crept out of the bush, up to the prey for nibbling on leftovers. “Victory!” triumphs Mahmoud, “This is a lesson very easy to understand!” Sure of his way, he left the woods, determined to take advantage of this excellent life lesson. Two years later, a hungry tramp goes to the wise Sufi. Under filthy rags, in the emaciated, the Sufi recognizes Mahmoud who starts to cry: “Your advice did not help me, nature has given me a bad lesson,” said Mahmud.
“I went into the forest, I saw a fox that had no legs, yet he lacked for nothing. I too was sitting doing nothing. Like the fox, I waited and waited, but nothing good has happened, and now I am destitute” The sage nodded and answered: “The lesson was perfect, but the student was not. Since you have legs, why did you imitate the fox? Your model is the bear. You got to help yourself and help the weak. This was the lesson you missed.”
Dont gamble our hard earn money and life just because you want to save your so called what “country automobile eco-system” .. I wont gamble mine..
I wanted to buy a Perodua Axia, but not anymore because I heard a few stupid statements by the CEO.
Go ahead buy Proton you fool.
Not necessarily have to be Proton, there are Almera, Vios and City to choose.
Honda CEO will be like “mission accomplished” Well done, it’s an enjoyment to see the downfall of arrogant Toyota
It’s probably coincidence but interesting to note that support for national cars seem to be going down in lieu with dwindling support for the current government. It’s 47% vs 53%. Sounds amusingly familiar. Btw this is just an interesting observation, not analysis.
So he’s saying we should sacrifice quality of the vehicles we purchase just to keep these guys in business? *ptui*!!!!
This is tough time for Proton, market opening and people having more choice and Proton making some awkward choices, like building cars that are no longer considered affordable and as a result people not buying,
Quality issues are also a problem and hopefully it’s slowly being ironed out
what is important for Proton is offering affordable and reliable cars that people want to buy.
The Saga is still true to Proton, and the Persona is also a good car
hopefully new Saga and Persona follow the tradition
Exora is becoming a good tradition also
Ssatria is an interestign car, if they got money, OK to do
As for Preve and Suprima, its nice and full of features but price is outside most Proton fan’s range… sadly