Perodua estimates its market share for 2016 to hit 35.7%, with over 207,100 vehicles sold out of the estimated 579,600 total industry volume (TIV) for last year which would make it the carmaker’s highest market share achieved in history.
“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,” said Perodua president & CEO, Datuk Dr Aminar Rashid Salleh.
The Bezza alone saw over 36 units sold, making it the best-selling compact sedan in the A-segment.
Perodua expects a slight improvement to the market in terms of TIV with a 2% growth from 579,600 units in 2016 to 590,000 units in 2017.
Based on this projection, it expects to capture 34.2% of the market share this year, with target sales of 202,000 vehicles.
Aminar said the market was challenging last year due to a tough market where consumers were still adjusting to the challenging economic condition, the prudent lending guidelines and the stiff competition by nearly all auto players.
Despite the tough sales environment locally, Perodua grew its export volume by 6% in 2016 to 4,700 units from 4,400 units in 2015; with over 60% of its exports to Indonesia.
Other export markets include Sri Lanka, Brunei, Mauritius and Singapore.
On profitability, Aminar said that Perodua would focus more on its after sales for revenue growth.
“We are investing more in our after sales business to further improve our earnings, in fact, 2016 saw many records being made with over 2 million vehicles visiting our service centres nationwide,” Aminar said.
He explained that with the increase in service intakes, Perodua recorded a service revenue of RM682 million compared with RM600 million service revenue in 2015.
On production, Perodua made 213,000 vehicles in 2016 compared with 229,000 vehicles in 201 due to decreased demand for vehicles in 2016.
“The reduction in production is in-line with the reduced sales in 2016; for 2017, we foresee production to be further reduced to 197,000 which is reflective of our sales target for the year,” Datuk Aminar said.
Besides that, the company would also be increasing its capital expenditure for the year from RM492 million to RM557 million, most of which will be put into the existing plants.
It is also identifying countries with potential for export, although Aminar was not able to divulge which countries the company is looking at.
Meanwhile, Perodua will soon begin construction on its first retail pre-owned vehicle outlet, which would be the first such outlet in Perodua history.