Third year of growth in Proton sales in spite of challenging conditions

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Third year of growth in Proton sales in spite of challenging conditions

Although it is estimated that the Total Industry Volume (TIV) of new vehicles sold in Malaysia last year dropped by at least 4.6% to just over 505,000 units of passenger cars and commercial vehicles, Proton’s sales for the year rose by 4.5% over its 2020 volume. With December contributing 14,147 units, the Malaysia carmaker ended the year with a total of 114,708 units delivered (including export sales). It was the highest closing figure since 2014 and is the third consecutive year of volume growth for the company.

The brand’s market share in December is estimated to be 20.6% but for the whole of 2021, it would likely be 22.7% (pending official data from the Malaysian Automotive Association). This would be an increase of 2% over the market share in 2020, putting it is a firm second position in overall sales.

SUVs make big contribution
It’s not surprising that the two SUV models – the X70 launched in December 2018 and the X50 in October 2020 – have made major contributions to Proton’ sales numbers. This mirrors the global trend that has been going on many years now where SUVs are very popular.

With a total of 45,149 SUVs sold in 2021, Proton can claim to be the best-selling SUV brand in Malaysia. That number accounted for nearly 40% of its total sales volume. Individually, the X50 ended the year with 28,774 units, with December being its best month when 4,310 units were delivered nationwide. It was the second consecutive month the model exceeded more than 4,000 units.

Meanwhile, 16,375 units of the bigger X70 were delivered in 2021 with a final month figure of 1,616 units. This put it at the top of the SUV C-segment, and third in terms of overall SUV sales.

Saga still the bestseller
Nevertheless, the bestselling model for Proton was still the evergreen Saga, with 42,627 units sold. The model is also sold overseas and assembled in some countries as well, enabling better supply of cars to those markets.

Other models that performed well in 2021 were the Exora (4,035 units), Persona (16,153 units) and Iriz (6,708 units). Deliveries rose a bit during December as chip supply issue improved slightly.

Growing international sales
International sales were also a major highlight for the company. With 3,018 units exported in 2021, the total volume grew by over 100%. This made Proton the number one local automotive brand for export sales last year. With local assembly operations ramping up in overseas markets coupled to a hopeful loosening of trade restrictions, there is optimism the upward trend will continue in coming years.

“2021 was tough for the automotive industry as a whole and this is reflected in the reduction in TIV compared to the previous year. From a global chip shortage to a spike in COVID-19 numbers that led to another lockdown to skyrocketing transport costs, there were many challenges for industry players to overcome. That is why PROTON’S sales growth in a year where the market contracted was significant as it was the result of careful planning and juggling of available resources,” said Roslan Abdullah, CEO of Proton Edar.

“Regarding export sales, we are equally proud about being the brand with the highest export volume in 2021 as it proves we are gaining traction overseas thanks to the joint efforts of our International Sales division and our foreign partners. While increasing shipping costs are a growing concern, our planned activities in 2022 means we expect export sales growth to accelerate in the coming years,” he added.

7 new outlets opened
The Proton network of 3S/4S outlets started 2021 with 140 outlets and despite the challenges faced in terms of financing and construction works, another 7 outlets were in operation by the end of 2021.

“The growth of Proton’s ancillary businesses such as Proton Commerce and the increase in the number of outlets is directly linked to the number of vehicles we sell. As sales have grown so have our facilities to cater to an increased number of customers. I would also like to announce we have extended the warranty for the 6-speed automatic gearbox used by the CBU Proton X70 to 5 years with unlimited mileage. This is to further benefit our customers and give them added peace of mind,” added Encik Roslan.