Ringgit drop affecting profit by up to 5% – Perodua

Perodua_Axia_Standard_vs_Advance_ 001

The automotive sector is one of those categorised as negatively affected by the sharp drop in the value of the Malaysian ringgit versus the US dollar. While emerging markets across the globe have been hit, the ringgit is Asia’s worst performing currency this year.

The greenback is the main currency that most auto companies – whether Japanese or European brands – trade in. Costs have increased for imported cars and components, but current car prices will be held for as long the car companies can take it, according to Tan Sri Asmat Kamaludin, group chairman of UMW Holdings.

“Unless its absolutely necessary, car companies will not increase prices,” said Asmat, who is also Perodua chairman. This is due to the local car industry being very competitive, he told reporters at the official opening of Perodua Sentral in Petaling Jaya today.

Perodua, despite having a high localisation rate of almost 90% (average across three models – Axia, Myvi, Alza), is also affected by the forex situation as the company imports in USD. “We have been impacted. To give you figures, it’s 2 to 3% of our bottom line (profit before tax) two to three months ago; now (at current rates) it’s 5%,” he revealed.

Minister of International Trade and Industry, Datuk Seri Mustapa Mohamed, who officiated the facility’s opening, said that MITI will engage with the automotive industry and will be meeting with the players to learn more about the issues affecting the sector.

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Danny Tan

Danny Tan loves driving as much as he loves a certain herbal meat soup, and sweet engine music as much as drum beats. He has been in the auto industry since 2006, previously filling the pages of two motoring magazines before joining this website. Enjoys detailing the experience more than the technical details.

 

Comments

  • Loads of bull****/cow dung! P2 no need to involve in any R&D, just take any design, modify a little, throw in 20 years old engine. Don’t tell the rakyat about losing money!

    Selling overpriced B-segment small car tin kosong MyVi for RM56k (against a C-Segment fully safety-spec loaded Preve for 55k) is ridiculous!

    Like or Dislike: Thumb up 27 Thumb down 12
    • kzm (Member) on Sep 04, 2015 at 3:38 pm

      they still need to buy certain part n component outside eg airbag

      Like or Dislike: Thumb up 5 Thumb down 11
      • Import berak dan taik on Sep 04, 2015 at 4:07 pm

        Contradictory statement. First Asmat says 90% localization. Then he says they are affected because must import parts.

        Contradicts la bang. If you are 90% localised, lagi nak import apa? Taik kah?

        Like or Dislike: Thumb up 19 Thumb down 2
        • dugongx on Sep 04, 2015 at 4:37 pm

          Import takata airbags and premium perodua logo…

          Like or Dislike: Thumb up 12 Thumb down 0
          • Asmat Senyap Sangat on Sep 04, 2015 at 5:59 pm

            this what happens when our leaders and politicians are stealing billions and all of them are doing it. they are so busy, they got no time to protect the consumer and car buyers like us

            Like or Dislike: Thumb up 8 Thumb down 2
          • Malaysia - ZERO investors on Sep 04, 2015 at 6:20 pm

            but Utusan said ringgit drop very good for Malaysians. All the Utusan readers like kzm were very happy when they read that

            Like or Dislike: Thumb up 9 Thumb down 1
          • Malaysia - ZERO investors on Sep 04, 2015 at 6:23 pm

            Asmat, pls don’t lie to Malaysians. Even ringgit jatuh also, you are making clean profit of at least RM10k per Myvi sold.

            Please don’t think Malaysians are stupid.

            Like or Dislike: Thumb up 10 Thumb down 1
          • nameless on Sep 05, 2015 at 10:31 am

            tricolor italian flag logo..

            Like or Dislike: Thumb up 0 Thumb down 0
        • Contradict what? lagi 10% import la.

          Like or Dislike: Thumb up 5 Thumb down 8
          • Asmat Senyap Sangat on Sep 04, 2015 at 5:47 pm

            But our Menteri Menteri UMNO said ringgit jatuh very good for the country and people will benefit a lot.

            Mana ada?

            Asmat tak Tanya Nazri dan Menteri lain lain yang kata ringgit jatuh banyak bagus

            Like or Dislike: Thumb up 12 Thumb down 1
      • Otak Udang on Sep 04, 2015 at 4:24 pm

        buda bodo. Still believe what the gomen tell you is it? Gomen tell you makan sampah, you makan sampah?

        this is why our leaders can steal RM2.6 billion and tell people like kzm it is donation and he believe.

        Like or Dislike: Thumb up 14 Thumb down 3
        • Gargantia on Sep 04, 2015 at 5:25 pm

          Finally someone that make sense. Too bad Rakyat still believe “donation and taxes” will help nation? In fact onlying benefiting cronies.

          Like or Dislike: Thumb up 8 Thumb down 0
          • policeman on Sep 04, 2015 at 6:11 pm

            The stench of jealousy is strong here.

            Like or Dislike: Thumb up 4 Thumb down 0
      • Penjilat UMNO tegar detected!

        Like or Dislike: Thumb up 7 Thumb down 4
        • Asmat Senyap Sangat on Sep 04, 2015 at 5:52 pm

          He should take a pay cut. Infact Board of Directors of UMW untung so much when Ringgit was very strong. For 20 years mengaut keuntungan lumayan.

          Each of them, bonus run into Millions. Now Ringgit jatuh, they should take a pay cut. After all, for 20 years enjoy millions in bonus every year

          Like or Dislike: Thumb up 6 Thumb down 0
      • kzm (Member) on Sep 04, 2015 at 8:03 pm

        What do I say is wrong? Are there any airbag company built airbag in bolehland? Seriously I don’t know one. Even national car brand no 1 gearbox n ESP is imported let alone airbag

        Like or Dislike: Thumb up 2 Thumb down 1
        • kzm (Member) on Sep 04, 2015 at 8:21 pm

          Correction..there is company built airbag in boleh.. Autoliv Hirotako for national car brand no 1

          Like or Dislike: Thumb up 5 Thumb down 1
        • Go back and enjoy your Myvi then. Penjilat UMNO tegar. I hope you d** in crash in your MyVi

          Like or Dislike: Thumb up 2 Thumb down 1
          • kzm (Member) on Sep 06, 2015 at 2:03 am

            U really new to paultan rite?.. pipu call me p1 fanboy u know..now u call me p2 fanboy.

            Like or Dislike: Thumb up 4 Thumb down 0
    • Where is Najib's Promise? on Sep 04, 2015 at 4:05 pm

      The question Asmat must be asking is, where is Najib’s promise?

      Where is Najib’s promise? Najib promised 30 million people 2 years ago before the election that he would reduce car prices by 30 percent.

      He said the 30 million people need not worry because BN always kept their word and never mungkir janji. He said if people voted for BN, he was 100% sure to reduce car prices by 30 percent.

      Najib, in his speech told people that BN knew how much people suffered paying for their cars and he felt very sorry for the people, thus, he was sure to reduce car prices by 30%.

      It is a well know fact, that we Malaysians are paying 3x the global prices of cars. And double whammy, not only we pay 3x the global prices of cars, our cars are stripped down so bad, it hardly lacks any safety features. Even our top D segment cars each have about 20 less safety features than the same car costing 3 times less overseas. For example, a 10 airbag Toyota Camry CBU in the US cost US$22,000. In Malaysia, this cost RM180k. And loads of safety spec taken out. For example Tyre Pressure Monitoring System and many others. Camry Hybrid in the US is US26,000. Come to Malaysia, should be tax free. CKD it using Malaysian parts should be even cheaper. But here sell RM175k

      UMW has been making so much of money from each Toyota and Perodua sold the pst 20 years.

      Now, what happened Najib? Where is your promise?

      Najib also said that by 2020, we would become high income nation. He said our GDP per Capita would be US$48,000. That would mean, per month, the average Malaysian would be earning US$4000 (RM15,000) per month.

      Raja Nazrin, Sultan of Perak said this was pure lies. He said it is an utter lie because 78% all EPF contributors are earning RM1200 and below.

      Do you see the average Malaysian earning RM17k per month by 2020?

      Like or Dislike: Thumb up 21 Thumb down 2
    • You Proton, sendiri buka aib sendiri. Dah tahu Preve sales teruk, nak cerita lagi. You tak malu ke P2 is selling more myvi that your C-segment and cheaper preve.

      Like or Dislike: Thumb up 0 Thumb down 7
      • bunny on Sep 05, 2015 at 10:06 am

        I finally known ioma’s true colour. He is a blind supporter of p2 n basher of p1. Nowonder p1 articles he bash kaw kaw. Thats how bad the bashing was that made him noticabl which is reminiscence of ‘motorhead’
        Im not p1 n p2 supporter but do realise thay no matter how badly u want p1 n p2 to close down.. remember 1 thing.. taxes, import duties will never be demolished unless u change the govt!
        Wake up la ppl! This govt is as good as s*it!

        Like or Dislike: Thumb up 4 Thumb down 0
      • iomasark on Sep 05, 2015 at 10:24 am

        This is not about sales number. People asked why p2 tin.milo kosonv is overpriced? Understand?

        Like or Dislike: Thumb up 3 Thumb down 0
        • I am replying to the person talking about overprice myvi. Read the thread b4 commenting.

          Like or Dislike: Thumb up 1 Thumb down 2
          • iomasark on Sep 06, 2015 at 10:34 am

            Sales number dun indicate it’s value for money. Myvi is still overpriced

            Like or Dislike: Thumb up 2 Thumb down 0
          • Yea … the people willing to donate to p2.

            Like or Dislike: Thumb up 1 Thumb down 0
    • Example: use RM4 buy overpriced Roti Kosong but stupid Malaysian thought that he or she buy the Roti Sardine.

      Like or Dislike: Thumb up 2 Thumb down 0
  • Tell this to UMNO lah

    Like or Dislike: Thumb up 7 Thumb down 2
    • policeman on Sep 04, 2015 at 6:09 pm

      Why? Opposition is the one causing this. Demonstrating in the streets like uncivilised Sakai.

      Like or Dislike: Thumb up 2 Thumb down 11
      • Yet its the ministers that sound more Sakai each time they make q public statement

        Like or Dislike: Thumb up 4 Thumb down 2
  • George Abdul on Sep 04, 2015 at 3:38 pm

    BN supporters must be proud of the cronies that earn millions just receive from AP system. So the supporters can work for until 80 years old…

    Like or Dislike: Thumb up 6 Thumb down 1
  • seancorr (Member) on Sep 04, 2015 at 3:54 pm

    No need meet with players from this sector to find out about the issues affecting this industry. We all know WHOSE fault this is and its just ONE man and his wife that is screwing up the entire country. We also know when prices go up they will NEVER come down again. Just take a look at our retail and food prices now.

    Someone needs to pull the trigger on that fag…

    Like or Dislike: Thumb up 8 Thumb down 3
    • camtakpro on Sep 07, 2015 at 12:14 pm

      Normal trigger can’t help. Need at least those use for dinosaur.

      Like or Dislike: Thumb up 0 Thumb down 0
  • Open Letter to Asmat on Sep 04, 2015 at 3:59 pm

    Please don’t be proud Perodua and si Asmat. Yes you have done well in the past in sales but it is merely because MITI has jacked up the prices of all other cars by RM30k that we Malaysians are forced to buy your car, being the cheapest.

    But your car has ZERO safety features which puts of lives and our family in constant danger. We can only pray that we don’t meet an accident. If that happens, we are dead on the spot.

    Again I tell you, don’t be proud of your sales to Malaysians. You have indeed done well but at our detriment and at the expense of our safety.

    People always pick and condemn Proton but you too have got all the Protectionism like Proton. Yes, Proton may have sucked tens of billions to stay afloat, but you Perodua, though you have not sucked that much, you have benefitted from MITI protectionism which has made all Malaysians suffer the past 20 years.

    And now you Asmat, say, you don’t know how long you can hold your prices. Hello, your Camry is only USD$22,000. This also a highly specced 10 airbag Camry CBU with about 20 safety features taken out in the CKD. Yet, you sell your Camry here for Rm180,000 despite it being CKD. Your cost for a CBU camry hardly can come to US$15k also. The CKD Camry is about US$12k. And yet, you charge Malaysian RM180k. And now you say you don’t know how long you can sustain the current prices of your cars?

    Honda for instance was about to sell their Honda City for RM50k. But this proposal was shot down by MITI. How do I know? Well I used to work for Honda at a very high level. We used to negotiate with MITI. But MITI was always demanding we increase our prices.

    Surprising why MITI is asking us to increase our prices. What else? It is to protect Proton and Perodua.

    So, Perodua, don’t be proud of your achievements and come here like a cry baby pre warning people that you are increasing your prices. Your cars, still can be reduced further. We are overpaying you as you have still not reduced your car prices by 30% as promised by your big boss Najib.

    You are still screwing the lower income people. The big guns in Perodua Boardroom all earn 6 figures per month so they don’t know about the man on the street who still earns RM900 per month. People say, even with RM10k is hard to live in KL. Can you imagine somebody earning RM900?

    We tend to blame Toyota and Honda for high prices but let us assume they are for the middle class.

    Perodua is still very pricey and burdensome for the lower income. Don’t be proud Perodua

    Like or Dislike: Thumb up 24 Thumb down 2
  • Same L0rrr on Sep 04, 2015 at 4:00 pm

    Buy perodua better.. good & better RV than Proton..

    Like or Dislike: Thumb up 2 Thumb down 7
    • Malaysia Car Prices vs Global Car Prices on Sep 04, 2015 at 4:12 pm

      We are overpaying the Government and all the crony GLC owned car companies too much the past 20 yrs. You see, ALL car companies are really owned by the Government. From BMW to Honda and Toyota to Proton and Perodua.

      These are US car prices with US duty and import tax paid, which are just like Malaysian car prices with duty and tax also paid, but here, you will see, they are much lower and less exorbitant than in Malaysia.

      Bear in mind all cars are CBU (complete built up) Japan, CBU South Korea or CBU Germany.

      The following cars we get here are CKD (complete knocked down) cars with more than 50% Malaysian content and “supposedly” are cheaper due to their being CKD and supporting Malaysian manufacturers.

      I cannot understand, we support our own Malaysian manufacturers and beli barang buatan (buy local) Malaysia too, and yet the prices can be higher than barang buatan (made in) Japan or German, which is usually higher in quality.

      And yet, to make matters worse, US people’s GDP per capita is higher than Malaysia’s and the average American earns five times more than the average Malaysian.

      Below are car prices based on exchange rate of USD 3.0 as it was 2 years ago when I wrote my article. These Malaysian car prices were also 2 years ago, so, it is fair to use the exchange rate of 3.0. But even if you calculate 4.0, our car prices are still exorbitant.

      Malaysians car prices VS Malaysian Prices

      Mainstream Car Prices

      Honda Accord 2.4 US$21,480 (RM64k)vs RM180k

      Honda CRV 2.5 US$22,495(RM67k) vs RM170k

      Honda Civic 2.0 US$15,955 (RM47k)vs RM115k

      Toyota Altis 2.0 US$16,130(RM48k) vs RM139k

      Toyota Camry 2.5 US$22,055(RM66k)vs RM180k

      Kia Sorento US$23,150 (RM69k)vs RM160k

      Hyundai Tucson US$19,245(RM57k) vs RM140k

      Hyundai Sonata US$20,895 (RM62k) vs RM150k

      Hyundai Elantra 1.8 US$16k (RM50k) vs RM118k

      Luxury car prices

      BMW 328i US$36,500 (RM109k) vs RM300k

      BMW 528i US$46,900 (RM149k) vs RM420k

      BMW 535i US$52,500 (RM157k) vs RM600k

      BMW X5 US$47,500 (RM142k) vs RM580k

      Mercedes E350 US$51,000 (RM153k) vs RM400,000 (In M’sia for only CKD E250)

      Jaguar XJ US$73,700 (RM221,000) vs RM900k

      Porsche Cayenne US$48,850 (RM146k) vs RM580k

      Every Malaysian must realise they are being cheated on car prices and have been cheated for the past 30 years.

      Most Malaysians pay close to 50% of their salary for their monthly payments for their cars.

      Not only do the banks get an easy ride (cause everybody is “forced” to take loans), we have to live in debt for over seven years, depriving our family of better food and clothes.

      Like or Dislike: Thumb up 12 Thumb down 3
      • dugongx on Sep 04, 2015 at 4:40 pm

        brader…your cut and paste is dated. Now USD conversion rate is 4.2 already but your calculations are showing 3.1 only.

        Like or Dislike: Thumb up 3 Thumb down 7
    • policeman on Sep 04, 2015 at 6:04 pm

      Then why did you buy Saga for your son?

      Like or Dislike: Thumb up 2 Thumb down 0
  • Beckscum7 on Sep 04, 2015 at 4:25 pm

    Is the UMW Group Chairman dumb or dump? All the minister in the government is saving low ringgit is VERY GOOD FOR THE ECONOMY.

    Like or Dislike: Thumb up 1 Thumb down 1
    • Asmat Senyap Sangat on Sep 04, 2015 at 5:50 pm

      He should take a pay cut. Infact Board of Directors of UMW untung so much when Ringgit was very strong. For 20 years mengaut keuntungan lumayan.

      Each of them, bonus run into Millions. Now Ringgit jatuh, they should take a pay cut. After all, for 20 years enjoy millions in bonus every year

      Like or Dislike: Thumb up 5 Thumb down 0
  • Kancil Hybrid on Sep 04, 2015 at 4:44 pm

    “U make profit or not that is your problem. What I care is that I already made RM2.6b of profit”.

    Like or Dislike: Thumb up 1 Thumb down 2
  • Beckscum7 on Sep 04, 2015 at 4:48 pm

    Oh since our minister stated low ringgit will spur economy and truck load of tourist will be visiting Malaysia. Why don’t P2 just open showroom in KLIA, Penang airport, Senai airport and might I add along the Thai border where illegal immigrant will enter to sell the car. Something like Blue Ocean Strategy to Create Uncontested Market Space. They potential buyer will say, oh there is the P2 car, what a marvellous piece of engineering, let buy one since its cheap. That way UMW can counter their reduction in margin via economies of scale. Wawasan 2020, here we come.

    Like or Dislike: Thumb up 0 Thumb down 2
  • buahdoyot on Sep 04, 2015 at 4:59 pm

    thats how stupid our menteri and ppls are…90% locally assembled and yet price need to be increased? talk to the hand guys…perodua got most of its original parts from oversea, and that’s the main reason they want to up the price…stupid malaysians only to buy perodua

    Like or Dislike: Thumb up 2 Thumb down 1
    • Asmat Senyap Sangat on Sep 04, 2015 at 5:57 pm

      the guy is lying. You mean the engine makes up only 10% of the car?

      the engine come from Japan. That is what Perodua claim. Or is this true?

      Like or Dislike: Thumb up 1 Thumb down 2
    • Failed Math on Sep 05, 2015 at 9:57 am

      You must have double PHD from UiTM.
      He said > Perodua, despite having a high localisation rate of almost 90%.
      Double PHD you said > talk to the hand guys…perodua got most of its original parts from oversea, and that’s the main reason they want to up the price…stupid malaysians only to buy perodua

      Like or Dislike: Thumb up 2 Thumb down 1
  • Bungkus on Sep 04, 2015 at 5:03 pm

    How about the other company making car at profit only RM500?

    Can they still maintain the profit or not?

    Like or Dislike: Thumb up 2 Thumb down 0
  • applegreen on Sep 04, 2015 at 5:07 pm

    A few years ago government told us that car prices will drop by 20%. But actually today we see ringgit will drop by 20% against usdollar

    Like or Dislike: Thumb up 4 Thumb down 0
  • Aero (Member) on Sep 04, 2015 at 6:01 pm

    This is why being self-sufficient matters. In 2011, Perodua’s sales were also affected by the Tohoku earthquake. Now this currency depreciation is affecting their profit margins.

    To assume that Proton is not affected is just as wrong. Proton probably imports a greater variety of components than Perodua, like their airbags, safety computers, transmissions and whatnot, but Perodua imports only a few components in high volume. It’s because Perodua has only 3 models while Proton has many more.

    Whatever happens, Proton & Perodua must brace the current economic storm, just as they did in the 1997 financial crisis.

    Like or Dislike: Thumb up 2 Thumb down 1
    • kadajawie on Sep 04, 2015 at 7:58 pm

      How’s Proton financial result 2014? Still suffer billions losses or not?

      Like or Dislike: Thumb up 1 Thumb down 0
  • kapchai on Sep 04, 2015 at 7:07 pm

    The REALITY is : despite what they tell you that 90% of the car is localised, but a high percentage of the raw materials are still IMPORTED. Example say the car body is Made in Malaysia, but the steel is imported. The engine may be Made in Malaysia, but you still have to import the metals to make the engine block. The seats is Made in Malaysia, but the fabric and other component parts are still imported. The electronic parts are definitely not made in Malaysia. These materials cannot be sourced from Malaysia, but imported from Japan, Thailand, Taiwan, Europe and of course China. This does not only apply to the automotive industry but also many other industries in Malaysia. Example the corn used to feed our chickens are imported. And unfortunately they are all mostly denominated in USD. So guys, like it or not, be prepared for INFLATION.

    Like or Dislike: Thumb up 3 Thumb down 1
  • cendol (Member) on Sep 04, 2015 at 7:16 pm

    I believe in Najib leadership

    Like or Dislike: Thumb up 3 Thumb down 2
  • Big brotherly Sista on Sep 04, 2015 at 7:54 pm

    thanks to the BN govt clowns, the rakyat suffer….harder, bitter and longer

    Like or Dislike: Thumb up 2 Thumb down 0
  • Jobless on Sep 04, 2015 at 10:31 pm

    Who cares.. When making billions in gud times year after year due to protection u quiet..nw baru few weeks nilai RM jatuh sudah threaten to naik harga..btw Mivi so overrpiced even if jobless oso me wont buy

    Like or Dislike: Thumb up 2 Thumb down 0
  • Apekgoh on Sep 05, 2015 at 10:38 am

    I rather get used car then go for any p2 car.

    Like or Dislike: Thumb up 1 Thumb down 0
 

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