Proton sees second MCO affecting new vehicle sales

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Proton sees second MCO affecting new vehicle sales

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Proton is usually the first to provide an overview of their sales for the previous month, and for the first month of the new year, they have reported a drop of 29.9% in sales compared to January 2020. During the month, the carmaker delivered 5,964 units and with its estimate that the Total Industry Volume for the month will be slightly above 32,000 units, that means a market share of 18.5%, about 1% less compared to the same month last year.

Proton points out that the overall figures are a reflection of supply not being able to meet demand rather than a reduction in bookings. Nevertheless, it is clear that there are economic effects on various industries and consumer confidence.

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Second MCO slows down sales
“January was a difficult month for Malaysia’s automotive industry. Hopes were high that the momentum built at the end of 2020 would be carried forward, especially after the announcement of PENJANA incentives remaining available until the end of June this year. Unfortunately, the second MCO (Movement Control Order) announcement put a damper on those hopes,” said Roslan Abdullah, CEO of Proton Edar.

“Still, Proton, as well as the rest of the industry, is in full support of all measures the government has in place to control the rate of infection. The safety of all Malaysians needs to remain as the main priority and companies need to pivot in order to achieve their goals in a changed market environment,” he said.

“Measures like the MCO have naturally affected the number of customers coming to showrooms, but we can receive bookings online helping to boost our sales,” he added.

*Bestselling Proton model in the first month of 2021.*

The Saga started the year as the bestselling model with 2,583 units delivered. The two SUV models – the X70 and X50 SUV twins saw lower volumes of 892 units and 1,082 units, respectively. To date, 4,809 units of the X50 have been delivered since its launch at the end of October last year.

Effect on production volume
While Proton’s order bank remains healthy with orders carried over from the end of last year, the company is still working hard for supply to catch up to demand. As an industry that depends on a global supply chain, automotive companies are acutely affected by delays to vendors that have a knock-on effect to their production lines.

“However, our supply lines have been disrupted over the last few months by the coronavirus making it difficult to ensure a steady flow of parts needed to build our cars. It’s something all car manufacturers have been facing for the past year but we are hopeful that with the arrival of a vaccine things will stabilise by the middle of the year,” Encik Roslan said.

Product launch plans remain
Despite the delays, Proton intends to pursue its product launch plans for 2021 as the company strives for more sales growth both domestically and abroad. “For now, Proton will stick to its 2021 product launch schedule. We have an exciting series of improved products in the pipeline while the Proton X50 will now be able to establish its standing in the market by benefitting from a full year of sales,” he said.