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Perodua targets sales of 314,000, 45% market share by 2023, purchases of local parts worth RM10 billion, new investment of RM1.15 billion

After hitting a record high 282,019 delivered last yearPerodua has set itself an even more ambitious target for 2023. At its outlook media conference today, the local automaker announced plans to sell 314,000 vehicles this year, equivalent to corresponding to an increase of 11.3%.

Based on its internal data, last year’s total industry volume (TIV) forecast will reach 720,000 units (720,658 actual units, according to MAA), Perodua holds 39% market share. By 2023, the company’s projected TIV has been set at 705,000 units, and the company has set a target to increase its market share to 45%.

“In terms of the overall market, we believe there is still a bright spot for the industry despite numerous cost pressures. We believe the total volume of the industry could exceed the 650,000 units announced by the Malaysian Automobile Association,” said Perodua President and CEO Datuk Zainal Abidin Ahmad.

The higher sales target will of course be met with higher production, and Perodua says this will increase 14.1% from 289,054 units in 2022 to 330,000 units in 2023. If production volumes are reached That would be the highest level since the company’s founding in 1993 – the company will celebrate its 30th anniversary this year and said in the release that it has produced 4.68 million vehicles since then. since production began in 1994.

“This year (2023) presents a golden opportunity for us, as consumers still put their faith in the auto market. In fact, more than half of our target volume is from pre-orders that we obtained last year but have yet to deliver,” said Zainal.

“As the conventional installed annual production capacity of our Perodua Manufacturing (PMSB) and Perodua Global Manufacturing (PGMSB) plants stands at 320,000 units on a two-shift cycle, we still have can increase its volume by improving productivity and by setting up overtime,” he added.

On the basis of one model after another, axis will command a quarter of total production this year at 25%. This is followed by beza (23%), the myvi (21%), the Ativa and Alza (11% each) and Aruz (6%), the rest accounted for 3% (the company that assembles the Toyota Rush and Veloz for the Malaysian market).

The jump in production planned for 2023 also ensures an increase in domestic parts purchases, which is to be expected as the company says its models have a localization rate of 95%. . This year, the company will spend RM10 billion on local source parts, 20.5% higher than the RM8.3 billion it spent in 2022.

That’s not the only area where Perodua splurges, as the company also highlighted an increase in capital expenditures (capex) to RM 1.15 billion in 2023 from RM 850.5 million in 2022. The plan includes the development of new models (RM537.1 million) to be launched in 2024 and 2025 – the company did not go into specifics.

Meanwhile, RM247.1 million will be invested to modernize operations, including upgrading existing 1S and 2S centers into 3S centers. The company also plans to expand its used vehicle (POV) business and registers following the positive response to the Ativa Hybrid introduced last September.

Last but not least, on the after-sales aspect of the business, Perodua said it expects service intakes to grow 7.3% from 2.64 million units in 2022 to 2.83 million units by 2023. This will see the carrier’s share of the take-out increase a modest 1% to 74% this year from 73% last year.


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