Domestic Sales
Proton’s domestic car sales are up by 17.5% in August – 11,786 units – compared to the 10,018 units in July, which was in turn 21% higher compared to the 8,328 units sold in June. Proton Edar Dealers’ Association (PEDA) is confident September sales would follow the trend and breach 14,000 unit sales. Sales targets for this year will likely be reduced though, after reevaluation of market conditions. Proton’s previous target was to increase market share for the financial year of 2007 to 45.8 percent, from 2006’s 41.4 percent. Proton’s current market share to date is only 32.4 percent, which is a big drop from the 2006 financial year. Satria Neo sales have been 2,750 units so far, with 4,000 orders in hand since it’s launch since June. The figures outperformed estimates set by the company.
More after the jump…
Financial Status
While Proton made a loss in Q1 2006, it’s expected that on the overall, the company’s year 2006 financial performance will be profitable. The previous financial year had also shown a loss in Q1, but on the overall the financial year ended with a profit of RM779 million. However, we should note that this year’s losses were 3 times the amount lost in the same quarter last year, so comparing the numbers, turning around to profit this financial year should be tougher.
Inventory
Some dealers were holding stock of between 2.5 million to 3.5 million as of July, which translates to about 45 to 65 cars. There were some dealers who had it really bad, holding more than 100 units during the period. On average in an urban area, a dealer has to sell 30-40 cars a month to break even but some dealers were only doing fewer than 10 cars a month. Sales and production amounts are being monitored closely, and Proton wants to make sure stockpiles of cars do not exceed two months worth of production. Proton is working hard to clear it’s 2005 stock.
Quality Control
Warranty claims for the Proton Savvy and the Proton Satria Neo is currently at an average of 0.5%, which was quoted to be an improvement.
New Models
Proton acknowledges that a big problem with their sales is the lack of a fresh model range. Proton is making sure it’s new model development programs will result in new models that are designed according to market needs, not niche segment models. This will be very important for Proton to increase sales volume. This would mean no new niche models e.g.: pseudo-pickups, sporty hatchbacks. Volume = family sedans that are cheap enough for the bulk of the rakyat to buy, e.g.: perhaps an Iswara replacement? Two new models will be launched by mid-2007. Previously there was news of a car by the year end, but I guess this means it’s launch date is pushed back to before mid-2007.
Exports
Proton plans to increase CBU exports to the UK and Australia, as well as CKD assembly in Indonesia, Thailand, the Middle East and Eastern Europe. Proton is also studying the feasibility of CKD operations in China and India. Export shipments for the whole of 2005 was 13,512 units, while the exports for this year to date is 12,519 units – this means this year’s exports would exceed last year’s. Proton intends to raise exports to 100,000 units by the year 2008.
Proton also recently subscribed to an additional 255 million redeemable convertible preference shares in Proton Marketing Sdn Bhd at an issue price of 1 ringgit each – a total of RM255 million ringgit. This is to facilitate recapitalization and debt restructuring of Proton Cars (Australia) Pty Ltd and Proton Cars (UK) Ltd. Proton Marketing Sdn Bhd bought an additional 24 million redeemable shares at 1 pound each – 24 million pounds (RM164 million) in Proton Cars (UK) Ltd and additional 32.1 million shares in Proton Cars (Australia) Pty Ltd at 1 AUD each – 32.1 million AUD (RM89.5 million)
Partnerships
There are exploratory talks with PSA Peugeot Citroen. The talks with China’s Chery Automobile is also still underway, as previously reported in Proton’s Bursa Malaysia announcements. Second finance minister Nor Mohamed Yakcop says Proton and it’s majority stakeholder Khazanah Nasional (the government’s investment arm) are studying whether Proton needs a foreign investor or local entrepreneur’s help. “More and more, we think that there could be a role for a foreign investor who is in the motor industry to play an important role in bringing Proton to a higher level,” said Nor Mohamed Yakcop.
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no more sporty hatchback-no more proton savvy?
How about no more juara,that wira-pickup truck. I like Putra very much, though not sure I will see anymore in the future.
Proton, please laa…. dun use the word RAKYAT… u have used RAKYAT for 20 years ….
great move by proton, hope ya succed in future
hmm…. an Iswara Replacement model.. That sounds brilliant. Maybe it can compete with the City and Vios. I hope Proton will succeed.
I think the increase of sales in August 2006 is also contribute & affected by the 'crazy' discount that given during 'Bulan Kemerdekaan' promotion for government staff. Maybe this is a good promotion package, but better beware not to reduce or lower the car quality if u (Proton) want to maintain the support & sales from local buyers, otherwise you will turn into ashes!
Anyway, good luck Proton! Please laaaa… don't be tido or malas2 lagi. Rakyat sekarang ni dah semakin bijak tau!
Dump all the pickup line, hatback model, we need a decent 5 seater family car with good quality, good FC, better design without odd rear like savvy, odd interior like gen2 please…
If the government abolish protective taxes, I will wish Proton success. Until that very day, no thanks.
it is malaysian market…more like korean n japanese market as what jeremy told…
its about business, not passion of making cars…
Dragging by its quality issue and other factors, the sales plummeted in Q106.
The sale of Satria Neo increased but I do not think Q1 lost can be balanced.
The main problem of Proton is missing/lack of direction and strategy. Till now, no clear direction (eg, biofuel, hybrid, etc) is defined for its new or incoming product. This is clearly seen from the introduction of Satria Neo. Neither technology advancement nor consumer-friendly feature is available.
Also, Proton price is not competitive as it is remain unchanged for its old model.
Some foreign carmakers have in-progress research like hydrogen fuel cell, night vision, biofuel, and so for to anticipate the future market and energy.
They have planned well and innovated their product for the benefit of consumer.
Proton still has far to go and need to faster their pace. Else it will suffer and losing the battle of open trade market.
"Proton intends to raise exports to 100,000 units by the year 2008."
Hope P1 tak cakap kosong and do it. At this volume, I don't think P1 can adopt current VERY BAD BIZ MODEL: –
1. Export market – Sell at lowest price but highest quality.
2. Domestic market – Sell at highest price but lowest quality.
This is done at the expense of rakyat and under crappy NAP protection.
The good biz model are: –
1. Export market – Sell at competitive price but highest quality.
2. Domestic market – Sell at lowest price but best quality.
So, do it and dismantle the crappy NAP to show to rakyat that P1 is boleh and Malaysia boleh!
If still continue current bad biz practice, it is not surprising the total sale volume for domestic and export even plummet below 100,000 units by 2008 as there are many new models to be launch in 2007 in our market. Needless to say how many models for export market under free market!
I think deep down in malaysian heart we hope to see proton make us proud.
We hope to one day go to another country and see a proton on the foreign land and make us smile.
That day is now only a dream.
It wont happen if we get crappy quality at home and feel like being cheated with some shoody work and forced to buy because all other cars are jack up in price due to protection measures imposed.
P1, Let us Buy NOT because we have no choice but buy because we want to. the way the satria neo and Gen 2 design are coming, it looks positive…
as the comments above says, it takes more than just looks to sell a car.
Hope P1 finally will put their act together. 22 years of manipulation is enough. Stop manipulating before malaysian ban you for good. Look at the statistics Toyota / Perodua now is no 1 choice.
"The previous financial year had also shown a loss in Q1, but on the overall the financial year ended with a profit of RM779 million."
are you sure???How can they take in so much profit?????
Unachievable……Proton seems like to predict something which is very impossible
ask why we are so concern,busybody,nagetive thinking,etc,etc,commenting on proton,many will think,we are non patriotic,nothing to do,want to see proton failed,saddist.you are wrong,back in the good old days when i was a boy,i used to get punnish and cane by my dear father,after all the caneing and lecture,my father will console me with this words,( I punnish you becos I care about you future,I cane you becos I love you,) yes,our intention on proton are loud and clear,we love you so much,we dun want to see you failed,we wants to be able to feel proud about you! the reason why we commened so much on you is becos,you are so naughty and bad behaviour,please! wake up,start changing for the better,even if you need to married VW,OR MITSUBISHI OR GENERAL MOTORS,being a open mind father,I dun mind having a daughter in law,be it german,japanese or american,fine with me,so long you can be happy and sucessful in all your future undertaking!!!
"Satria Neo sales have been 2,750 units so far, with 4,000 orders in hand since it’s launch since June. The figures outperformed estimates set by the company."
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Satria Neo target annual sales is around 30K unit. Since launch in June 06 till today is approximately 3 months. If the figure is outperformed estimates by P1, then the delivered figure (2,750 units) shall take into consideration (June to Sept 06) and the orders 4,000 units shall be tabulated accordingly in coming month once it is delivered to customer! This shall be the case and say 4,000 units is delivered on or before Dec 06, then on average Satria Neo sales is around 1,000 units per month which is well below target!
There is no issue on backlog like Perodua MyVi case as currently, Proton plant according to their claimed is under capacity by 40%.
yea….watever happened to that legal action taken against previous staff of proton leadership etc? no follow up? well that was expected anyway. same as all of these high profile court cases we see in the newspapers.
it seems proton can turn up profits in the millions even with no car sales. amazing. maybe MAS can turn a profit by flying domestically only with one flight/week per destination. proton really is a miracle company.
if i was proton i'd be pissing in my pants right now. sales across the board are horrible and they expect to turn a profit by years end.
sell the stock cost price, then made iswara replacement at the same size with all new technology. Good luck proton.
Today's news on banks tightening the croteria in giving out loans, Proton sales will definitely be affected as Proton's customers are mostly the lower income bracket which will be singled out by the bank's new move. Good luck Proton and Perodua.
2 new models in mid 2007? Any spy shot yet??? Anybody??
nizam80 said,
September 9, 2006 @ 9:42 pm
hmm…. an Iswara Replacement model.. That sounds brilliant. Maybe it can compete with the City and Vios. I hope Proton will succeed.
your hope..will be hope..26 years old also can differentiate between car or junks
proton u can make it wan.
don listen to stupid ppl who oni noe how to critic but donno how to do other things wan.
wheres my comment ?
hey guys
proton financial year is in 31/3
FY 2006 the net profit was RM47k
FY 2005 net profit was RM 442k (previous publish income statement was RM 779k)
This info is from http://www.proton.com/about_proton/investor_relat…
FY 2006 the net profit was RM47 m
FY 2005 net profit was RM 442 m (previous publish income statement was RM 779 m)
Typo
waimak said, "2 new models in mid 2007? Any spy shot yet??? Anybody??"
Satria Neo spy shot last for more than 2 year, now there is nothing on spyshot for these 2 model, means earliest is beyond 2008, or non at all as all talk on partnership still blank.
What concerns the consumer the most is the offering of two new product. Let's us perdana replacement model. That's one. The other? Wira/Waja replacement might be good. As someone rightly point out the first picture of the SatriaNeo was two years ago, and there is none so far for any new model. Blowing hot air only? I wonder if they manage to secure a JV deal on certain models, would they be able to fulfil their promise?
So far, the new Proton models are not doing very well at all. Gen-2 depreciates like hell, Savvy can compete with Myvi, Neo well just doesn't appeal. Crash for collision? Sell now or regret later.
Joe's insight (and apparent inside line) to Proton's partnership discussions is impressive in the extreme.
You should be an investment analyst Joe – you'd make a packet and-a-half.
PROTON DARE TO CHANGE? Please do this if you want to capture market segmen (Offer existing models);
1. Further selling price discount (say 10% -50%)
2. Attractive finacing rate (say 2.5% – 3.0% p.a)
3. 3 year maintenance free waranty
Process of changing Mitsi badge to Proton badge takes less than 6 month. Think about Proton survival, dont think about poor performance Proton Vendor!
PROTON DARE TO CHANGE? PLEASE DO NOT CHANGE THIS MOTTO!