Perodua anticipates a challenging 2017 – no price increase for now, will continue to absorb forex impact

Perodua anticipates a challenging 2017 – no price increase for now, will continue to absorb forex impact

Last year was quite an eventful one for Perodua. The Malaysian market leader (top for 11 consecutive years now) launched its first ever sedan – the Bezza – but saw fellow national carmaker Proton roll out four new models in the Perdana, Persona, Saga and Ertiga. Despite that, the Rawang-based carmaker still ended 2016 with an all-time high market share of 35.7%, up from around 32% in 2015.

“Despite 2016 being a challenging year, we are pleased to announce that all our models – from the Bezza to the Alza – are number one in their respective categories. Despite being launched in July, we’re happy to announce that the Bezza sold over 36,000 units in 2016, making it the number one sedan in the A-segment,” said Perodua president and CEO Datuk Aminar Rashid Salleh.

Perodua is no stranger to defying odds, but even the company isn’t anticipating a rosy year ahead, for both the economy and consumer sentiment, as well as auto sales. Aminar expects this year to be as tough as 2016 or worse, with intensifying competition. “Everyone wants a piece of the pie,” he said.

Perodua’s sales target for this year reflects this – at 202,000 units, it’s 5,000 units or 2% less than the 2016 total. On a projected 2017 total industry volume of 590k, that would be around 34% market share. Lower than 2016’s, but last year’s record gain was an unexpected one as rivals’ share of the pie shrunk in a competitive market. Production volume for this year will also be lower to match the reduced sales target – 197,000 vs 213,000 units for 2016.

The Axia facelift – now in showrooms – and the Bezza will make up the bulk of Perodua’s 2017 sales

Another issue, not just for Perodua but all car manufacturers and importers, is the decline of the ringgit against major trading currencies. At around 4.45 against the US dollar, the ringgit has weakened considerably since late 2015, when Perodua first hinted at a price increase and the RM was at 4.2 against the greenback.

“For the time being, we’ll continue to monitor (the forex effect) and we’ll continue to absorb (the higher cost). We will hold prices for as long as we can, hoping that it will weaken (USD vs RM) in the later part of the year,” Aminar said, adding that while Perodua’s localisation rate is high (previously revealed to be over 90% for all its models), it does import “precision” parts such as ECUs, electronics and metallic paints, and that most trading is conducted in USD.

That’s for existing models. The Axia facelift – which is in showrooms today and will be officially launched this Friday – has seen prices climb by up to RM2,773, but the refreshed hatch does come with an improved engine and fuel consumption, plus new features across the board to compensate. Click here for full details, pricing and live galleries of the 2017 Perodua Axia facelift.


GALLERY: Perodua Axia 1.0 Advance facelift
GALLERY: Perodua Axia 1.0 Standard G facelift with GearUp bodykit

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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

  • Albert on Jan 17, 2017 at 5:49 pm

    The basic auto Axia is almost rm 37000.
    All car lovers must evaluate VALUE FOR MONEY now.
    NO doubt,a new car is just buy and drive and no need repair.
    However,the price have SHOT thro the roof.
    There r 500,000 pre owned units available at the click of mouse.
    We need not buy new.
    Maybe 2-4 years old.
    We dont need to fulfill MAA’s sales forecast.
    Car buyers must be wiser now.
    Once committed,the loan is 84-108 months!!!!
    It is better to be safe than sorry.
    Let the target set…fail.It shouldn’t bother car buyers.What is important is whether we can AFFORD and have plans B n C in case the economy worsens.

    Like or Dislike: Thumb up 52 Thumb down 7
    • Gargantia on Jan 17, 2017 at 6:07 pm

      Aldy expensive at starting price, yet still need to look at for ex?!?! Cronies in Malaysia never fall to impress Rakyat !!!

      Like or Dislike: Thumb up 27 Thumb down 1
    • Then i suggest you work harder.

      Like or Dislike: Thumb up 0 Thumb down 1
    • Look at above ad. 10 year old viva (m) at rm 27k or better to buy new Axia basic at rm24k.lol

      Like or Dislike: Thumb up 4 Thumb down 0
    • Open Letter to Aminar from Kunta Kinte on Jan 18, 2017 at 7:55 am

      Aminar, your increase of RM2773 on your Axia yesterday is a lot of money to the lower income group. This is not fair as the National Car company was created to give cheap cars to Malaysia.

      This is why Japanese cars went 3 fold in price from the 90s to 2016. Before Proton and Perodua, one can buy a good brand new Japanese car for RM20k. But Mahathir said, he was going to create Proton and Perodua that will give Malaysians a cheaper and better car than the Japs. We trusted Mahathir.

      After that, to protect Proton and Perodua, Government imposed heavy taxes and increased the prices of Japanese cars 3 fold and it became unaffordable.

      Again, the spirit of a establishing 2 local national car companies was to give cheap cars to Malaysians. By the way, my first Saga I bought was RM18k in cash. Brand new car. Proton Saga 1.3S

      So, the past 30 years, Malaysians had to rely on either Proton or Perodua as we, the rakyat, allowed the Government to protect Perodua and Proton. It is unfair to raise prices since we have supported Proton and Perodua all these years.

      Secondly and more importantly, as CEO of Perodua, which is GLC UMW owned, Aminar should ask his big boss Najib to honour his promise to reduce car prices by 30%. Already, Malaysians pay the highest car prices in the world. Aminar should ask Najib where is this 30% car price reduction Najib promised the rakyat 4 years ago.

      By right, the Axia should not be raised by RM2774 but be reduced by RM7500 (30% price reduction promise)

      The rakyat is suffering. It is up to the 2 famous CEOs, Aminar and Kenali from Proton to ask their big boss to honour the 30% price reduction promise.

      After all, if national car company cannot approach Najib for this, how else are the local Jap car companies going to approach Jib for this?

      Like or Dislike: Thumb up 15 Thumb down 4
    • Faiz Roslan on Jan 18, 2017 at 11:02 am

      Syabas to Proton for slashing prices when others are hiking. We as dutiful rakyat must recognise that any soft loan or grant to Proton in the end rakyat wins. This years line up as usual ride, handling, NVH, FC, RV all superior and will for sure sell in Indonesia, Chile, etc like hot cakes. Support Malaysia with every single drop of our blood! – Faiz Roslan CEng

      Like or Dislike: Thumb up 0 Thumb down 9
    • OVERPRICED CARS on Jan 18, 2017 at 3:50 pm

      Until a few years ago, I never thought Perodua cars are overpriced. But now I’m convinced beyond doubt that it is.

      You see, Proton could sells basic IRIZ at 40K, but basic MYVI is also the same price. Compare these two cars side by side, the MYVI are just expensive rip-offs.

      Proton don’t have ECONOMIES OF SCALE. Individual parts are more expensive than what Perodua could get. Perodua does have economies of scale. It has Daihatsu by its side, and by extension, Toyota too. Huge pool of resources. But you see what kind of cars they give us – 10 year old cars!

      I always wonder whether Proton has intentionally sell its cars at a loss (underprice) so that it will still be in business. Or whether its current cars’ price is reflective of market value.

      Like or Dislike: Thumb up 3 Thumb down 0
  • Market share being eaten up by P1, still dare to up price?

    Like or Dislike: Thumb up 24 Thumb down 10
    • Raja Celup on Jan 17, 2017 at 8:39 pm

      John Dedak still dare to sell Accordana at RM129k price?? What a joke.

      Like or Dislike: Thumb up 4 Thumb down 1
    • camtakpro on Jan 17, 2017 at 9:36 pm

      I don’t think so, P1 is still in their misery.

      More like dozens of factories closed, where most of the workers are Perodua customers.

      Like or Dislike: Thumb up 0 Thumb down 0
    • Same L0rr on Jan 18, 2017 at 6:18 am

      Softloan rm1.5B pay already aa?

      Like or Dislike: Thumb up 6 Thumb down 0
      • On the way. Do u payback a large sum loan just soon as u took ’em? No? Why din u payback immediately?

        Like or Dislike: Thumb up 1 Thumb down 2
      • Henry on Jan 18, 2017 at 10:54 am

        It will be converted to equity. So, no need to pay. Simple as that.

        Like or Dislike: Thumb up 0 Thumb down 0
    • pondan on Jan 18, 2017 at 8:43 am

      Once bitten twice shy. That’s the true proton owner feeling. Fyi, I have been bitten 4 times. I have to remind myself to learn and avoid P1 for good.

      Like or Dislike: Thumb up 9 Thumb down 2
    • Perodua has been selling more expensive cars than Proton for years and they are still leading. You should go to toilet to ponder why you are losing out despite selling cheaper and bigger cars.

      Like or Dislike: Thumb up 8 Thumb down 3
      • R u referring to the Rarer-than-Perdana2 Nautica? What happen to that? Still fortune-telling from toilet bowl kah?

        Like or Dislike: Thumb up 1 Thumb down 2
        • They withdraw the model immediately upon learning that the model cannot sell. But Proton still clinging to they Arena, Tiara, Savvy, Suprima, Satria and now Perdana, Iriz, Preve for years even though it cannot sell. You Proton just lack of business acumen.

          Like or Dislike: Thumb up 6 Thumb down 2
    • Mikey on Jan 18, 2017 at 10:37 am

      It should read “Market share being eaten up by P2” for more than 11 years. Please update your reading.

      Like or Dislike: Thumb up 4 Thumb down 0
  • Faiz Roslan on Jan 17, 2017 at 6:38 pm

    When it’s challenging for Perodua means it’s good for Perodua. With competition, Perodua should improve further on its product offerings and services. This will incentivise the manufacturer to come out with the best products and prices to compete for customers. In the end, consumers and Malaysians get to benefit.

    Like or Dislike: Thumb up 0 Thumb down 0
  • kzm (Member) on Jan 17, 2017 at 6:41 pm

    Axia facelift face look much better than pre-facelift though..

    Like or Dislike: Thumb up 0 Thumb down 0
  • 12yrsold on Jan 17, 2017 at 6:46 pm

    Hello P2. Just bcos U are champion for 11 consecutive years does not gives U the right 2 dictate how much U can increase the price of your products.

    Someone commented that U are champion not bcos U are the Best but bcos U are the cheapest. Try increase too much & see if Rakyat still buy your car or P1.

    This is a time for buyers to choose which car manufacturer gives them the best in terms of Price, products & Services. In other words, Cash is King.

    You should earn less now since U have already earn enough for the past 11 years & start passing some of your profits in-lieu of improve services & specs for your customers.

    In short, U should do some Corporate Social Responsibility(CSR).

    Like or Dislike: Thumb up 3 Thumb down 0
  • Uberian on Jan 17, 2017 at 7:48 pm

    The price hike is hardly noticeable. People who buy Axia will take years of loan. That translate to negligible amount of increase on their monthly repayment. In return Perodua added a new engine and some tech such as fancy keyless entry. It is very reasonable. As a Perodua owner, I am very grateful to Perodua because we have not been able to own Japanese quality cars at a reasonable price since the inception of Proton. They are not perfect, but thank Perodua for being there when Proton screw us up.

    Like or Dislike: Thumb up 1 Thumb down 1
  • Y U Fuk on Jan 17, 2017 at 9:37 pm

    Perodua uses Daihatsu/Toyota technology & design. Not like the mamaks’ Proton which tries their hand at designing keretas ! Perodua make very good cars, albeit badge engineered, and deserves to be at the top spot. The only failure in design was the BEZZA. Is it a Myvi with a boot ? They really hashed the backside, less said, decide for yourself. To get a sedan, they should have rebadged the previous VIOS. They should also bring back the NAUTICA in some SUV form, because today SUV ‘s the world over are in great demand.

    Like or Dislike: Thumb up 2 Thumb down 2
    • lettew on Jan 18, 2017 at 1:18 pm

      Nautica cannnot sell, tak laku!

      Like or Dislike: Thumb up 1 Thumb down 1
      • camtakpro on Jan 19, 2017 at 7:16 am

        90k for a Perodua? Of course Nautica cannot sell. Try selling some where between MyVi and Alza price.

        Like or Dislike: Thumb up 0 Thumb down 0
    • ahmad ariff on Jan 18, 2017 at 1:34 pm

      just sharing knowledge.. Bezza is axia with boot.. yea u r right, it is one of the worse rear design of a sedan i’ve ever seen in my entire life…

      Like or Dislike: Thumb up 2 Thumb down 0
      • Sam Prabanathan Loo on Jan 18, 2017 at 7:03 pm

        IMO, if slightly tonggek for a sedan is still acceptable (such as Iswara/Saga and Wira with slightly jacked up rear springs) to reduce chances of scraping over the undercarriage when passing through speed breaker (worse with full load). But Biza ‘tonggekness’ is too weird and awful.

        Like or Dislike: Thumb up 0 Thumb down 0
  • old horse on Jan 17, 2017 at 9:44 pm

    seriously, we want to know how much U$ parts and JPY parts they are using instead of RMB parts.

    this is the fundamental problem of a local-only production where none can be export.

    those exporter happily collecting u$ and creating productivity for the country by using local resources. economy 101 for self sustain. (unless you are cronies obviously)

    Like or Dislike: Thumb up 0 Thumb down 0
  • tokmoh. on Jan 17, 2017 at 10:24 pm

    When want to be seen as local carmaker, bangga la >90% localisation.

    Forex loss sikit, terus threat might increase price. LMAO, for parts that’s 90% parts that’s reduced cost since ringgit weakened? Diam2 masuk poket.

    Like or Dislike: Thumb up 4 Thumb down 0
    • pondan on Jan 18, 2017 at 6:47 pm

      parts local, raw material to make the parts import. besi import, plastic import, labour import, getah import ( have u seen any rubber estate lately), pasir (for glass) import, electronic components import, technology import, cotton import. macam macam import tapi parts tu local.

      apa macam? ada logik tak?

      Like or Dislike: Thumb up 0 Thumb down 0
  • Faiz Roslan on Jan 17, 2017 at 10:28 pm

    Perodua never fails to surprise. From producing state of the art budget car to helping Malaysians own their own car with very affordable pricing, Perodua has proven to be the people’s car. I’m surprised that they are still able to make profit and be a self sustaining company despite pricing their car so low while the spec remains competitive against the likes of more expensive counterparts.
    This proves that when a company is well run, anything is possible. Well done Perodua, syabas to bumi entrepeunership ! – Faiz Roslan CEng

    Like or Dislike: Thumb up 1 Thumb down 5
  • rocker on Jan 17, 2017 at 10:32 pm

    govt pls bring down your taxes, ease perodua in absorbing forex damage, help maintain affordable price of cars..

    Like or Dislike: Thumb up 0 Thumb down 0
  • sohai on Jan 17, 2017 at 11:02 pm

    haha…Malaysian product talks about forex. how ironic and pathetic.
    if there is something we want to hear about the weaken ringgit, it is that it should make our export more attractive and further boast the car sales!!

    what sampah car industry we have!

    Like or Dislike: Thumb up 5 Thumb down 0
  • Henry on Jan 18, 2017 at 10:32 am

    Because your profit margin is already so high. Do you dare to increase price? Sudah lah. LoL.

    Like or Dislike: Thumb up 3 Thumb down 0
  • Naik banyak, Turun sikit on Jan 18, 2017 at 3:22 pm

    Welcome to Malaysia…The Land of Everything Naik.

    Like or Dislike: Thumb up 3 Thumb down 0
 

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