Perodua expects more competitive auto business environment

KUALA LUMPUR: Perusahaan Otomobil Kedua Sdn Bhd (Perodua) expects a more challenging business environment with stiffer competition in the country.

“We are maintaining our sales target of 194,000 this year, and whoever takes the top position is irrelevant,” president and CEO Datuk Aminar Rashid Salleh said in response to a question of Proton being a threat to Perodua.

Up to the end of last month, Perodua had sold about 82,000 units, up 6.5% from 77,000 units in 2012.

Aminar: ‘Competition is good and it pushes everyone to outperform each other.

“This is already post-election, I hope this won't get politicised. If Proton is able to sell more, it will raise the total industrial volume.

“Competition is good and it pushes everyone to outperform each other,” he told a press conference which was called following confusion in the market that Perodua had reduced its on-the-road car prices.

The second national carmaker had clarified that it had reduced the total cost of car ownership for consumers, instead of cutting its retail price directly.

He said the reduced car ownership cost was done with the launch of its S-Series variant across its product range.

“The monetary value we give to our customers for both increased specifications as well as the three-year free service package is worth between RM4,500 and RM5,600,” he said.

“The price reduction was correct but it's not the on-the-road price that was mentioned,” he said.

He said with the new S-Series variant, Perodua had reduced the price by RM2,000, compared to the old variant.

“You should not just look at the reduction but also the total car ownership cost arising from savings from the three-year warranty, and in increase of specifications,” he said.

He said Perodua had achieved an overall reduction in cost of 12%, which was still below its 15% targeted by end of this year.

“This is done via cost reduction activities carried through the entire supply chain including improving efficiency and eliminating wastages,” he said.

Ultimately, he said, Perodua intended to bring its cost down by 30% by 2016.