Perodua targets 314k sales, 45% market share in 2023, RM10b local parts purchase, RM1.15b new investment

After hitting a record high of 282,019 deliveries last year, Perodua has set itself an even more ambitious target for 2023. At its outlook media conference today, the local carmaker announced it plans to sell 314,000 vehicles this year, which represents an increase of 11.3%

Based on its internal data that projected last year’s total industry volume (TIV) to hit 720,000 units (720,658 actual, according to MAA), Perodua captured a market share of 39%. For 2023, the company’s expected TIV has been set at 705,000 units, and it has set a goal to increase its market share to 45%.

“In terms of the overall market, we believe that there is still a bright silver lining for the industry despite the many cost pressures. We believe that the total industry volume can go beyond 650,000 units announced by the Malaysian Automotive Association,” said Perodua president and CEO Datuk Seri Zainal Abidin Ahmad.

The loftier sales target will naturally be met with higher production, and Perodua says this will go up by 14.1% from 2022’s 289,054 units to 330,000 units in 2023. If it manages to hit that production volume, it would be the highest since the company’s inception in 1993 – the company is celebrating its 30th anniversary this year and said in its release that it has produced 4.68 million vehicles since it began production in 1994.

“This year (2023) provides a golden opportunity for us, as consumers still have confidence in the automotive market. In fact, more than half of our targeted volume is from bookings we collected last year but have yet to deliver,” Zainal said.

“As our normal installed annual production capacity for our Perodua Manufacturing (PMSB) and Perodua Global Manufacturing (PGMSB) plants are at 320,000 units on a two-shift cycle, we can still increase our volume by improving productivity and by instituting overtime,” he added.

On a model to model basis, the Axia will command a quarter of total production for this year at 25%. This is followed by the Bezza (23%), the Myvi (21%), the Ativa and Alza (11% each) and Aruz (6%), with other accounting for 3% (the company assembles the Toyota Rush and Veloz for the Malaysian market).

The big jump in production planned for 2023 also warrants increased local parts purchase, which is to be expected as the company said its models have a local content percentage of 95%. This year will see the company pay out RM10 billion to source parts locally, which is 20.5% more than the RM8.3 billion it spent in 2022.

That’s not the only area where Perodua will splash the cash, as the company also highlighted an increase in capital expenditure (capex) to RM1.15 billion in 2023 from RM850.5 million in 2022. The planned investment includes the development of new models (RM537.1 million) that are due to be launched in 2024 and 2025 – the company didn’t dive into specifics.

Meanwhile, RM247.1 million will be invested to modernise operations, including upgrading existing 1S and 2S centres into 3S centres. The company also plans to expand its Pre-Owned Vehicles (POV) and subscription businesses following the positive response to the Ativa Hybrid introduced in September last year.

Last but not least, on the aftersales side of the business, Perodua says it expects a 7.3% increase in service intake from 2.64 million units in 2022 to 2.83 million units in 2023. This will see its intake market share go up by a modest 1% to 74% this year compared to 73% last year.

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