THE country’s two national car companies are set to intensify their rivalry with the launch of new compact models as they move to arrest sliding sales and boost market share.
Proton Holdings Bhd is banking on its Global Small Car (GSC) to make a “hurtful” challenge on the hugely popular Perodua Myvi in the B-segment of the local car market.
Perusahaan Otomobil Kedua Sdn Bhd (Perodua), which has been Malaysia’s top-selling car company for the past eight years, is turning to the smaller Axia model in the A-segment to boost sales.
Bank Negara Malaysia’s credit-tightening policy and stiffer competition have affected Perodua and Proton’s market shares in recent months. This was despite the total vehicles sales in the country growing 9.2 per cent yearon- year (y-o-y) and 4.7 per cent month-onmonth (m-o-m) to 58,561 units in June, driven by stronger performance from the non-national passenger vehicle segment.
The industry’s total sales in the first six months grew by 6.3 per cent y-o-y to 333,142 units, making up 49 per cent of the Malaysian Automotive Association’s new forecast of 680,000 units for 2014.
Perodua, however, saw its market share fall to 28.7 per cent in June and 28.4 per cent in the first six months, despite selling more cars (4.4 per cent m-o-m and 6.7 per cent y-o-y to 16,814 units in June).
Proton, which is owned by DRB-HICOM Bhd, posted a weaker market share of 17.2 per cent in June and 18.9 per cent in the January-June period. Its sales slipped 0.9 per cent m-o-m and 6.9 per cent y-o-y to 10,060 units in June.
Analysts said the companies could see sales affected in the second half of the year as their main market — the lower income consumers — is seeing higher loan rejection rates following tigher credit assessment for car loans after the rise in interest rates recently.
However, Proton GSC and Perodua Axia could sway the tide in their favour.
The GSC is a Proton Savvy replacement and is known internally as P2-30A. But in the blogsphere, rumours are rife that the five-door hatchback will officially be called “Proton Iriz”.
The 1.6-litre Iriz seems set for its debut within weeks after the launch of the Axia, which is expected to be as early as next week.
Some insiders have described the Iriz as stunning.
The Iriz may not be bargain-basement cheap, though. The car is likely to be in three variants, with prices starting from RM40,000.
“Now Proton wants to produce cars that are of world standard, but you have to pay a higher price. You can’t have a good car and pay a bad car price,” Proton chairman Tun Dr Mahathir Mohamad was quoted as saying last month.
DRB-HICOM executive chairman Tan Sri Mohd Khamil Jamil had said that the new compact car will be the starting point for a fresh Proton range, and a good platform for it to be Malaysia’s No. 1 car company again.
“We are positive of making a comeback to the No. 1 slot within two years,” Khamil said after launching the naming contest for the GSC last year.
Perodua, meanwhile, started accepting orders for the Axia from last Friday. It can be booked at any of Perodua’s 180 sales showrooms nationwide with a booking fee of
RM250 to RM300, depending on the variant.
The Axia will debut in four variants — Standard E, Standard G, Special Edition and Advance. The base Standard E model will be priced from RM24,900 in Peninsular Malaysia with a solid paint exterior and manual transmission.
The Advance version will sell at RM45,300 with metallic paint and RM44,900 with solid paint.
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