TOKYO (Oct 27): Perusahaan Otomobil Kedua Sdn Bhd (Perodua) says it is on track to meet its sales target of a record 314,000 cars this year, in anticipation of another record quarter for sales in the fourth quarter (4Q2023), thanks to further improvement in production efficiency.
The national carmaker had just posted its best quarterly performance in 3Q2023, with 88,537 cars sold, as monthly production volume had exceeded 30,000 units beginning September to catch up with demand.
The group still has a backlog of around 170,000 units across two to eight months depending on the model, according to Perodua executive director of manufacturing and vice-president of Perodua Auto Corp Sdn Bhd Datuk Ahmad Suhaimi Hashim.
Speaking to the press in conjunction with the Tokyo Mobility Show 2023, Ahmad Suhaimi also commented on industry concerns of a slowdown after record industry volume in 2022 and potentially 2023.
“What do analysts say about next year’s outlook? It’s the same as the outlook in 2022 or 2023, where the economy is very slow and things like that. [But] I presume [in 2023, we will] be doing more than last year,” he quipped.
“I think the suppliers, the vendors, the supply chain, they are able to pace us…maybe we can hit the target [of 314,000 units sold and 330,000 units produced for 2023]. This last quarter, this last lap, we will go out for it,” he said.
National car sales breached the 700,000 mark in 2022, supported by the sales tax exemption for locally assembled cars and 50% discount on imported cars registered before April 2023 (for vehicles booked before July 2022).
The continuation of industry order books also prompted the Malaysian Automotive Association to raise its 2023 total industry volume forecast by 11.5% to 725,000 units from 650,000 previously, back in July.
2022 was also the best year for Perodua, with 282,019 units sold, topping its target of 247,800 units by 13.81%.
Higher production capacity
Commenting on Perodua’s production, Ahmad Suhaimi said takt time — which is the product assembly duration required to meet customer demand — has been reduced to 1.1 minute currently, having increased the speed of the production line three times this year.
Compared with its 2023 production target of 330,000 units, the theoretical annual production capacity of Perodua’s plants is at 340,000, he said.
To improve speed, the company has also hired more employees to man the production line, and is being more flexible in adjusting the production of different models based on the demand situation.
That said, apart from the overwhelming orders and production line improvements, the prevailing issue of a semiconductor shortage on the supplier side still persists, although Ahmad Suhaimi assured that it continues to normalise.
“We managed to negotiate with the supplier of the particular component, so they have responded and, to a certain extent, managed to supply…we hope the situation will improve in the coming year.”
In a separate statement, Perodua president and chief executive officer Datuk Seri Zainal Abidin Ahmad said the company’s production and sales outlook for 4Q2023 would be “at their highest in the company’s history”.
“This increase in production shows the potential of the Malaysian automotive ecosystem as they further improve their economies of scale without sacrificing quality and cost efficiency,” he said.
“We remain committed to reducing our customers’ waiting period. We believe that the waiting period from January 2024 onwards would be better managed,” he added.
At 88,537 units, Perodua’s 3Q sales were up 28.29% year-on-year (y-o-y) and 33.89% quarter-on-quarter, helped by sales of the Bezza — its top performer so far this year — as well as the Axia and the Myvi.
Cumulative nine-month (9M2023) sales rose to 233,227 units, up 18.78% y-o-y from 196,354 units. Production in the period rose 18.6% to 245,341 units, from 206,837 units in 9M2022.
The latest performance represented 74.27% of the 2023 sales target, although things are seen improving for Perodua as monthly production rose to 31,447 cars in September, up 8.15% from 29,077 the year before.