Perodua supports moves to strengthen auto industry

RAWANG: Perodua says it supports government initiatives to sustain Malaysia’s automotive industry amidst the ongoing Covid-19 pandemic.

The Malaysia Automotive, Robotics and IoT Institute (MARii) had recently estimated a 28% drop in new car sales this year due to the movement control order (MCO) brought about by Covid-19, and had declared that a minimum 500,000-unit total industry volume was needed in 2020 for automotive businesses’ continued survival.

Among the incentives MARii outlined to stimulate demand are a temporary waiver on downpayments, reduced loan interest rates and joint subsidies between carmakers and the government for road tax and insurance for a limited time period.

“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,” said Perodua president and chief executive officer Datuk Zainal Abidin Ahmad (pic).

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 bought 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,” said Zainal.