As market goes into downturn, Proton's sales also dip by 37%

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As market goes into downturn, Proton’s sales also dip by 37%

2021 for the auto industry started low but as the first quarter progressed, sales volumes rose. However, with the second quarter, it appears that the market is going into a downturn. By Proton’s estimate, the May Total Industry Volume (TIV) of new vehicles registered fell by around 20%. While the Movement Control Order (MCO) may have had some effect, but shortages of chips – vital components for the many electronic systems in modern cars – have been slowing down output from the assembly plants.

For Proton, after seeing strengthening sales with each month, it reports that its May volume was down 37.1% from April. The Malaysian carmaker sold 9,440 units (some of which were exported) and with this volume, its estimated market share would be 20.3%.

Up to the end of May, the cumulative volume reached 57,283 units which translates to a market share estimated at 23.5% and an increase of 2.4% over the same period in the previous year.

As with the previous month, the X50 and X70 continued to lead their segments by a considerable margin. 1,899 units of the smaller SUV model were delivered in May while the X70 had 1,523 new owners. This brings the cumulative total of 3,422 units for the domestic as well as export markets.

Exports reach new 98-month high
Meanwhile, Proton’s overseas sales continue to gain momentum despite international markets going through varying degrees of lockdown. With 669 units comprising the Saga, X50 and X70 exported in May, the company’s international sales division recorded its best month since March 2013. As a result, total export sales for 2021 are now less than 100 units behind the total for the whole of last year.

“Car sales in Malaysia dipped in May due to factors such as chip shortages and the implementation of MCO in the middle of the month. Despite most industry players having healthy order books, most brands struggled to meet demand. For Proton, the numbers were high enough to retain second overall in the sales table and we also received a welcome boost from our export division who set a 98-month high despite restrictions on international shipping,” said Roslan Abdullah, CEO of Proton Edar.

Focusing on the future
With the full lockdown in effect (tentatively until June 14), all Proton sales outlets have to be closed. However, its authorised service centres are allowed to operate. Proton owners are requested to make a prior appointment before going to the service centre (which should be within 10 kms of their home address).

The company will also be considering utilising the enforced break to retool its sales plan for the remainder of 2021. It aims to future-proof its business against regulatory changes and external factors such as the coronavirus.

“2020 proved to the world that business as usual can be disrupted without warning. To remain competitive in an unpredictable environment, Proton, along with its vendors and dealers, need to have the flexibility to pivot quickly to take advantage of unexpected opportunities. As such, we will intensify our efforts to implement a framework to meet upcoming regulations locally and internationally which is vital for future growth,” Encik Roslan said.

“We are also finalising our model launch plans for the rest of this year. The current MCO will push some of these dates back, but Proton remains committed to meeting our launch targets and creating some excitement for our customers in 2021,” he added.