Perodua expects to spend RM5 billion on part and components this year

Perodua expects to spend RM5 billion on part and components this year

KUALA LUMPUR: Perusahaan Otomobil Kedua Sdn Bhd (Perodua) is expected to spend over RM5 billion on parts and components to produce 209,000 vehicles this year.

President and chief executive officer Datuk Dr. Aminar Rashid Salleh said the amount will be spent on Perodua’s 132 local vendors.

“This is certainly a significant amount, our contribution towards our vendors does not end with parts purchases but also our participation in their development and growth,” he said at Perodua Chinese New Year Luncheon, here, yesterday.

Aminar has raised the confidence that the sales momentum would continue to be encouraging this year; hence it would surpass the RM5 billion mark.

“Since three years ago, Perodua spent between RM4.8 billion and RM4.9 billion to purchase part and components annually,” he added.

Aminar said Perodua would work hand-in-hand with its vendors to ensure the vehicle production running accordingly.

“We expect parts purchases to be slightly increased this year from 2017. We will also help to reduce wastage and thus increase the efficiency of their operations, with the aim of further improving their profitability,” he said.

Aminar said Perodua would also guide its vendors to modernise and improve their operations in order to remain competitive.

Perodua Sales Sdn Bhd managing director Datuk Dr Zahari Husin said Perodua would want to expedite the delivery of the new Myvi to shorten its waiting period.

“Since its introduction nearly three months ago, the sale momentum has been strong. We hope it will continue at least until Hari Raya,” he said.

Zahari said currently the bulk of the new Myvi bookings about 83 per cent for the 1.5 and the remaining for the 1.3 variant.

“In terms of delivery, we are making adjustment overtime. Currently, we have delivered 76 per cent of the 1.5 variant.

“We will continue to monitor the situation and try to make adjustments accordingly as we want to reduce the waiting period,” he said.

Zahari pointed out there was cannibalisation among Perodua vehicle linups, however, he said it was still manageable.

Perodua also retained its leadership in the country as the number one carmaker for 12 consecutive years.

“For our vendors and dealers, the growth in sales has resulted in better growth opportunities for their respective businesses,” Aminar said.

Aminar added the market still offers Perodua growth moving forward, despite being close to saturation.

“Based on our internal estimations, we see our sales volume of 17,693 units for the month of January 2018 to be the highest-ever monthly market share of above 40 per cent, against a total industry volume (TIV) of 43,930 units,” he said.

Aminar said the strong deliveries spurred by the new Myvi as well as continued strong demand for other Perodua’s models.

“To date, we have delivered over 20,000 new Myvis in Malaysia,” he said.

As of January 2018, Perodua models retained its leadership in its respective vehicle segments, delivering 9,029 Myvis, 4,085 Axias, 2,776 Bezzas and 1,803 Alzas.

Aminar said Perodua would work overtime to meet all its current outstanding bookings at 48,000 units.

As of December 31, 2017, Perodua said its total number of carried-over stock of the new Myvi was a mere two units.

“Our new Myvi stockyard was virtually empty going into the new year, and all the cars delivered this year were manufactured in 2018,” said Aminar.

On the impact of its car sales due to the hike in interest rate, Aminar said it was still early for the company to evaluate the impact, citing that customers’ monthly loan payment will not be too high.

“Of course, interest on loans will go up but at the same time it is good for savings. Most of customers have taken up the loans between five and seven years of period.

“We will monitor this situation closely. We hope our bankers will continue to support us,” he said.

Aminar said Perodua expects it can stabilise its production planning for the new Myvi within two to three months, which in turn would reduce the waiting period.