Perodua targets 314k sales, 45% market share by 2023, RM10b local parts purchase, RM1.15b new investment –

After reaching a record of 282,019 deliveries last yearPerodua has set an even more ambitious target for 2023. At its outlook press conference today, the local automaker announced that it plans to sell 314,000 vehicles this year, representing an increase of 11.3%.

Based on its internal data that projected total industry volume (TIV) last year to reach 720,000 units, Perodua captured a 39% market share. By 2023, the company’s expected TIV has been set at 705,000 units, and it has set itself the goal of increasing its market share to 45%.

“In terms of the overall market, we believe there is still a silver lining for the industry despite many cost pressures. We believe the total industry volume can exceed the 650,000 units announced by the Malaysian Automotive Association,” said Perodua Chairman and CEO Datuk Zainal Abidin Ahmad.

Naturally, the higher sales target will be met with higher production, and Perodua says it will increase 14.1% from 289,054 units in 2022 to 330,000 units in 2023. If it manages to hit that production volume, it would be the highest since the company’s inception. in 1993: The company celebrates its 30th anniversary this year and said in its statement that it has produced 4.68 million vehicles since production began in 1994.

“This year (2023) brings a golden opportunity for us as consumers still have confidence in the automotive market. In fact, more than half of our target volume comes from stocks we collected last year but have yet to deliver,” Zainal said.

“Since our normal installed annual production capacity for our Perodua Manufacturing (PMSB) and Perodua Global Manufacturing (PGMSB) plants is 320,000 units on a two-shift cycle, we can still increase our volume by improving productivity and instituting overtime.” , said. aggregate.

On a model-to-model basis, the axis will command a quarter of this year’s total production at 25%. This is followed by the Beza (23%), the mivi (21%), the átiva Y Rise (11% each) and aruz (6%), representing other non-Perodua vehicles 3%.

The big jump in production planned for 2023 also warrants more buying of local parts, which is to be expected since the company said its models have a 95% local content percentage. This year, the company will pay RM10 billion to source parts locally, which is 20.5% more than the RM8.3 billion it spent in 2022.

That’s not the only area Perodua will be spending money on, as the company has also highlighted an increase in capital expenditures (capex) to RM1.15 billion in 2023 from RM850.5 million in 2022. The planned investment includes the development of new models (RM537.1 million) to be launched in 2024 and 2025; the company did not go into details.

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

Last but not least, on the aftermarket side of the business, Perodua says it expects a 7.3% increase in service receipts from 2.64 million units in 2022 to 2.83 million units in 2023. This will see its admissions market share increase a modest 1% to 74% this year compared to 73% last year.

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