Perodua Scales Down 2014 Sales Target

KUALA LUMPUR, July 16 (Bernama) -- Perusahaan Otomobil Kedua Sdn Bhd (Perodua) is revising downwards its sales target for this year to 193,000 units from 197,000 units forecast initially.

President and Chief Executive Officer, Datuk Aminar Rashid Salleh, said the lower projection was due to the softening of the market and more intense competition from non-national carmakers as well as effects from the revised overnight policy rate by Bank Negara Malaysia.

He said the impact from intense competition has already affected Perodua's first-half performance whereby its total sales slipped 2.5 per cent to 94,500 units from 96,900 units in the same period last year.

"Despite maintaining our position (as the leading carmaker in Malaysia), there has been a minor erosion of our market share to 28.4 per cent from 30.9 per cent in the same period last year," he told reporters at the briefing on the company's first-half performance here Wednesday.

However, he said, the total industry volume for the first six months was estimated to grow by 6.2 per cent to 332,800 units compared with 313,500 units in the same period last year.

Aminar Rashid said the next six months were predicted to continue to be challenging from the sales perspective.

He said the company hoped to do better in the area of after-sales.

"Revenue from vehicles visiting our service centres, or "intakes", and parts sales have shown improvement compared with the same period last year.

"Revenue from intakes have increased by four per cent to RM272 million from RM261 million previously," he said.

On the goods and services tax, Aminar Rashid said carmakers and distributors were expected to be impacted in the first year of the new tax regime implementation.

However, he said, Perodua hoped to minimise the cost impact through its cost-reduction and efficiency measures.


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