Published on June 4th, 2020 | by Amirul Mukminin0
Perodua Ready to Work with Government to Ensure Survival of Auto Industry
Perodua has released a statement saying they are in full support of the government’s aim to strengthen Malaysia’s automotive industry during this challenging period caused by COVID-19.
This is in response to MARii’s recent statement, in which the agency estimated a drop of 28% in new car sales this year due to the Movement Control Order (MCO).
According to the agency, a total industry volume (TIV) of at least 500,000 units is needed in 2020 in order to ensure that automotive businesses do not fall into crisis.
MARii suggested that innovative incentives can be introduced to lower buyers’ commitment to own a car, such as a temporary hiatus on down payments, reduced loan interest rates and joint-subsidies between carmakers and the government for road tax and insurance for a limited time period.
The agency claimed that a combination of the above incentives will remove the burden to buy a car, but do not affect their purchasing power as there will be a negligible difference between the monthly repayment amount for car buyers, at any level or segment.
Find out more in the press release below:
Following a recent announcement by the Malaysia Automotive, Robotics and IoT Institute (MARii), Perodua is voicing its support for the government’s initiatives to sustain Malaysia’s automotive industry amidst the ongoing COVID-19 situation.
“Perodua is in full support of the government’s aim to fortify Malaysia’s automotive industry in these trying times, and its various initiatives to achieve that aim,” said Perodua President and Chief Executive Officer Dato’ Zainal Abidin Ahmad.
“As Malaysia’s biggest carmaker by volume, we are eager and ready to step forward and work with the government to ensure the industry’s continued survival in this difficult time,” he added.
According to reports, MARii estimates a 28% drop in new car sales this year due to the Movement Control Order (MCO) brought about by COVID-19, and that a minimum 500,000-unit total industry volume is needed in 2020 for automotive businesses’ continued survival.
Among the incentives MARii outlined to stimulate demand are a temporary waiver on down payments, reduced loan interest rates and joint subsidies between carmakers and the government for road tax and insurance for a limited time period.
“It is indeed a challenging time for all of us, however, Perodua is confident that with the government’s collaboration, the industry as well as its ecosystem of suppliers and dealers will be able to weather the storm together,” Dato’ Zainal said.
Perodua has sold 52,920 vehicles as of the first five months of 2020, giving it a 41% market share against an estimated year-to-date total industry volume of 129,401 units.
All current Perodua models have over 90% local content, and last year, the carmaker purchased RM5.4 billion worth of components from Malaysian suppliers.
“Perodua is also doing its part to sustain its vast ecosystem of suppliers and dealers. Besides our volume, we assist and support them through investments, purchases and advance purchases, longer credit terms as well as various operational transformation initiatives and development programmes,” Dato’ Zainal said.