Shortage of stock pulls Proton's volume down in January

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Shortage of stock pulls Proton’s volume down in January

After ending 2021 with its highest annual sales figure since 2014, new deliveries for Proton in the first month of the new year dropped to 4,453 units (domestic + export) from 14,147 units the month before. Besides the drop of over 60% was higher, the total volume was also 25.3% lower than what was reported for January 2021. According to Proton, lack of available stock was the main factor as parts supply issues affected production of all models.

This was also the crystallisation of the knock-on effect of the severe flooding in Selangor at the end of last year. While Proton’s production facilities in Shah Alam and Tanjung Malim were unaffected by the floods in December, its vendors were not as lucky. Many have production facilities in Shah Alam (having set up to be near the original factory) and were thus affected by flood waters.

This had a direct effect on the output in January, leading to a shortage of units to fulfil orders. The situation was further compounded by minimal carry-over stock from the previous month as the company worked to close the gap between supply and market demand.

Persona was the bestselling Proton passenger car for the month, although this was largely dependent on stock available for deliveries to customers. Parts shortages prevented the two factories from being able to assemble more vehicles.

“After a successful end to 2021, January was a very tough month for Proton. Our short supply situation became magnified by the lack of units being produced, creating a severe shortage for our dealers. Thankfully, production for all our models resumed in January, though some required more time than others. We are, however, confident of meeting our targets for 2022 based on market projections as well as our sales and marketing plans for the rest of the year,” said Roslan Abdullah, Deputy CEO of Proton.

*Proton X50 – bestselling model of the brand in January*

Among all models, the X50 and X70 SUVs were the first to resume production and this was reflected in their sales volume for the first month of 2022. 2,601 units of the X50 and 799 units of the X70 were delivered during the month. Although the individual totals were modest compared to the previous month, when combined, they helped to position Proton as the number one SUV brand in Malaysia.

Flood relief efforts
One and a half months after the December floods took the nation by surprise, over 1,200 flood-affected Proton vehicles have been received at authorised service centres around the country. They are divided into 4 categories, depending on the severity of the damage suffered, before assessments are made and repairs get underway.

“Proton would like to remind all customers with flood damaged cars to send their vehicles to our network of authorised service centres to enjoy benefits such as free towing and car wash services as well as discounted parts and labour charges. We are also thankful to the government for the RM1,000 assistance voucher, which has proven to be invaluable for many of our customers,” added Encik Roslan.