KUALA LUMPUR: After a record performance in 2022, Perodua is looking to upshift its production to 330,000 units and sales to 314,000 units this year underpinned by outstanding orders carried forward from last year as well as continued demand for its vehicles so far this year.
The 330,000 production and 314,000 sales targets are 14.2% and 11.3% higher than Perodua 2022’s 289,054 production and 282,019 sales performances respectively.
Overall, Perodua has produced a total of 4.68 million vehicles since it began production in 1994.
Perodua president and chief executive officer Datuk Seri Zainal Abidin Ahmad said the normal installed annual production capacity for our Perodua Manufacturing and Perodua Global Manufacturing plants are at 320,000 units on a two-shift cycle.
Zanal (second from right) chatting with Perodua Auto Corporation Sdn Bhd president Masanori Takahashi after presenting the 2023 Outlook briefing in Kuala Lumpur. With them are Perodua Auto Corporation Sdn Bhd vice-president Datuk Ahmad Suhaimi Hashim (left) and Perodua Sales Sdn Bhd chief operating officer Jh Rozman Jaafar.
“We can still increase our volume by improving productivity and by instituting overtime," he said at the Perodua 2023 Outlook media conference here.
Zainal said the impact of Perodua's production growth to the Malaysian automotive industry would be significant as the Perodua has earmarked RM10bil to purchase parts from local suppliers to meet its 2023 targets.
“This purchase commitment is expected to further encourage the Malaysian automotive ecosystem to further improve its production capabilities and quality standards.
“In short, the increase in production will give much needed boost for our local industries to improve their economies of scale and to better compete with their counterparts abroad,” Zainal said.
Zainal also said 2023 is a golden opportunity for the company 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,” he said.
He said Perodua still has an outstanding order of 220,000 units that is expected to be delivered by the middle of the year.
“For customers who have ordered their vehicles before the end of the Penjana sales tax exemption period on June 30 last year, we will do our best to deliver their vehicles before March 31 for them to enjoy the sales tax break,” he said.
In the event that the vehicles could not be delivered on time, Zainal said Perodua would subsidise the customers and absorb the price increase brought upon by the imposition of sales tax.
“Our customers are important and we want to show our appreciation to those who have stayed with us and waited a long time for their vehicles,” he said.
Zainal also said Perodua believed the total industry volume (TIV) for 2023 could go higher than the 650,000 units forcasted by the Malaysia Automotive Association recently.
“In terms of the overall market, we believe that there is still a bright silver lining for the industry despite the many cost pressures.
“Based on the waiting period for most brands, as well as the still strong demand for Perodua’s vehicles, the TIV has the potential to reach 700,000 units this year,” he said.
For 2023, Zainal said Perodua has allocated RM1.15bil capital expenditure to improve its group operations.
Among the key areas of improvements include its new business division where Perodua is expanding its Pre-Owned Vehicle (POV) and Subscription business,
especially after the positive response from the public post Ativa Hybrid launch in September 2022.
He also said the company had allocated RM537.1mil on the development of new models, as well as RM247.1mil to further modernise operations, which also include upgrading existing 1S and 2S centres into 3S centres.
The improvements planned for its network will enable Perodua to meet its target to increase vehicle intake at its service centres.
“For 2023, we target to see an increase in vehicle intakes to 2.8 million units from 2.6 million recorded in 2022. This growth would be a combination of improved service time as well as increasing our service bays throughout the country,” Zainal said.
Risk factors that can derail Perodua's ambitions include higher inflation, further increase in interest rates and higher external cost factors such as fuel, power as well as higher commodity and raw material costs.
“These cost factors, if rise too steeply will have a negative impact to the momentum that we are currently on. The increase may not only have the potential to depress the market but also erase gains made by the industry as it was just getting its second wind,” Zainal said.
He added that the semiconductor chip supply was still a factor for manufacturers, not just for automotive players but industries such as electric and electronics and other heavy industries that rely on the technology.
“We are monitoring this factor closely but as of now, we are positive that we have the chips needed to meet our targets,” Zainal said.
