Proton Holdings Bhd. toppled national long time rival Perusahaan Otomobil Kedua Sdn. Bhd. (Perodua) as the market leader in automotive sales this year (2011). However, market analysts suspect that after part supply shortage due to tsunami recently totally resolved and supported by newly launched New Myvi, Perodua will strike back.
Analysts said top position is important for both car makers as both are selling cars in the affordable segment where volume was key in determining the profits.
"Perodua has a good chance of climbing back to the top of the sales chart but popularity of the Saga is strong," said an analyst who tracks the sector.
Proton has year-to-date sold more cars than Perodua. For the January to May period, the first national car company sold 72,229 vehicles compared with 70,752 for Perodua, according to numbers complied by an analyst from OSK Investment Bank.
Sales of the Saga averaged 5,000 units a month in the second half of last year but bumped up to 6,700 in the first 5 months of this year.
The best selling car for Proton during that period was the Saga, which registered sales of 33,649 for the period.
Analysts feel the drop in Perodua's sales was due to it phasing out of the old Myvi in view of the launch of the new Myvi which was introduced to consumers last month. "Many buyers were holding back until they saw the new Myvi," said the OSK analyst.
Sales of the Saga averaged 5,000 units a month in the second half of last year but bumped up to 6,700 units a month in the first five months of this year, said the analyst.
How long that will last is yet to be seen as analysts have said bookings for the new Myvi is strong. In the 12 days before the Myvi was launched, it had garnered 10,000 bookings.
"This is short-term visibility for us when we see demand for the new Myvi. Sales should pick up in July and August," said an analyst.
The lead Proton has built up, even though slim, is important as it does not have a new model planned for launch this year.
Analysts said a facelift of the Saga is all there is in terms of a refresher of its product line, but next year, a new model passenger car is expected to be launched. Additionally, in few days Proton will introduce more fuel efficient Saga which run using CVT transmission and upgraded Campro IAFM. This will help Proton to sell SAGA model better because customer can choose one out of many variants.
Analysts said the new model would be an addition to the Persona, which is another big seller for Proton, and said the pricing of the new car will have a bearing on the response from the public.
"Proton remains an affordable car for the masses and it has a lot of convincing to do for people to pay big money for its cars," said an analyst.
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