Published on January 16th, 2015 | by Daniel Sherman Fernandez0
Perodua Sales Targets To Surpass 200,000 Units In 2015
Perodua has set a sales target of 208,000 units for 2015 an increase of about 6% from 195,600 units recorded in 2014 based on the continued demand for its current model line-up. The compact carmaker has also retained its position as the most preferred compact automotive brand for 9 years in a row.
“We are humbled by the response and support shown to us and we will continue to offer better value proposition in both our products and services to our customers,” Perodua President & CEO Datuk Aminar Rashid Salleh said.
“That being said, we remain cautiously optimistic to achieve our sales target of 208,000 units despite the challenging economic and market conditions,” he added.
During a presentation of Perodua 2014 performance to the media, Aminar said that the demand for the Axia is still healthy at 66,400 units booked since 15th August until 31st December last year; and of that number, 29,100 units has been delivered to its customers.
“We believe that the New Myvi will also be well accepted by the public and expected to generate sales of 6,000 units a month,” he said.
Since the Myvi was launched in 2005, it has sold over 800,000 units – making it the most popular Perodua model in the company’s history. On the Perodua Alza, Aminar said that it was the most popular MPV in terms of sales last year and demand for the model still remains strong. Moving forward, Aminar said that the national compact car company will give greater attention to its after sales business as Perodua sees better growth potential in that area in its mid and long term plan.
Perodua targets to increase its intakes (vehicles patronising its service centres) to 1.97 million from 1.92 million recorded in 2014 – an increase of 2.4%, while growing its parts and accessories sales by 6.2% to RM258.9 million this year from RM243.7 million in 2014. Aminar said that based on the expected rise in intake, Perodua also expects revenue from its intake to increase this year to RM306 million from RM303 million last year – an increase of 1%.
“We foresee the growth coming from the increase number of new Perodua vehicles on the road to be serviced as well as our efforts to further improve our after warranty customers coming back to our service centres,” Aminar said.
“While the growth in our after sales business may not be that significant this year, better results are expected in the coming years as more after sales facilities and resources come on board,” he added.
He elaborated that Perodua will also further improve is value propositioning and engage in more awareness campaigns for its customers. On the automotive supply chain, Aminar said that Perodua is actively working with its vendors, vendor association and the Malaysian government to further improve local vendor competitiveness especially in the area of quality, cost and efficiency.
Last December, Perodua together with the Malaysia Automotive Institute announced that the former will further improve the payment terms for its vendors thus improving turn-around time.
“The mechanism is two-pronged; the first is reducing the payment terms from 60 days to 30 days and in certain cases, reduced to 16 days,” Aminar said.
He said that the reduction in payment terms is to facilitate better cash flow for the vendors; the first reduction in payment time is immediate.
“The second initiative is to pay for the raw materials up front when making an order for selected vendors to further help in their cash flow,” Aminar said.
He said that a number of 23 vendors were interviewed for the second programme and from that list, 12 qualified to be under the initiative. Perodua has a total of 119 local vendors.