Perodua Smart Build Archives

‘Perodua Smart Build’ launched as carmaker’s first sustainable blueprint

‘Perodua Smart Build’ is officially launched today as the Malaysian carmaker’s first sustainable blueprint. It encompasses nearly the entire Malaysian automotive supplier and dealer ecosystem, with the aim of moving the industry towards greater globalisation in the future.

Explaining the blueprint, Perodua President & CEO, Dato’ Zainal Abidin, said, “Perodua Smart Build is an evolution of what Perodua and the Malaysian automotive industry were originally set up to do: to create a sustainable and robust automotive ecosystem.”

He said that Perodua Smart Build is also Perodua’s ‘Transformation 3.0’. It builds upon its previous milestones which began with the first transformation phase in 2011. At that time, the company worked towards building the Energy-Efficient Vehicle (EEV) ecosystem, stop defect outflow, set up Perodua Global Manufacturing Sdn Bhd, and change Perodua’s mindset to be quality conscious.

Transformation 2.0, which followed, was focussed on customer satisfaction, organisational development and the fostering of unity within the entire Perodua Group of Companies.

“Now, we are at the third phase of transformation to ‘build’ a sustainable future for both Perodua and its partners to a point where we will be able to find our own niche in the automotive industry,” Dato’ Zainal said.

He said that under ‘Transformation 3.0’, Perodua is working together with its business partners to rationalise the gap in quality, cost and delivery within the automotive ecosystem and get the industry to be in ‘the right size’.

Dato’ Zainal also said that Perodua is also working with all its partners to see where existing expertise can be utilised beyond Malaysia. He gave the example of how Perodua staff are now working to design Daihatsu models in Japan as part of Perodua’s effort to export local expertise abroad.

*Malaysian designers from Perodua are working with Daihatsu on the designs of future models.*

Dato’ Zainal said Perodua will continue to leverage on its close partnership with Daihatsu to realise Perodua Smart Build’s objective. “Perodua Smart Build will be accomplished with the help of our shareholder, technology and technical partner Daihatsu Motor Company of Japan; and the Malaysian government who had the foresight to create this ecosystem for the benefit of the country,” he said.

According to Dato’ Zainal, Perodua Smart Build is designed to help Perodua and the automotive ecosystem reap the benefits of the National Automotive Policy by making the industry more competitive and progressive.

Chief among the components of Perodua Smart Build are full product development by Perodua and its suppliers, the establishment of a first-class working culture and first-class thinking that will be able to contribute to the nation.

“Perodua Smart Build’s launch does not mean that we have reached the full potential of these components; rather, it marks the start of Perodua and its partners’ journey towards a higher level of competitiveness. We are grateful to Daihatsu for this opportunity and for their continuous support of Perodua since the very beginning. It is now time for us to fully extend this cooperation to our Malaysian business partners,” Dato’ Zainal said.

*Perodua has been committed to supporting Malaysian suppliers and keeps increasing the value of local sourcing each year.*

He added that a number of Malaysian suppliers are already part of Daihatsu’s global supply chain, and Perodua is working with the Ministry of International Trade and Industry to prepare more local suppliers to follow suit. “We are also focusing more on developing our dealers, including strengthening their operations and guiding them towards the adoption of global best practices to further improve customer satisfaction,” he added.

He explained that Perodua’s goal is to ensure its dealers’ business sustainability by providing guidance of best practices and the latest technology for growth. “We consider our dealers business partners in the same way Daihatsu is our business partner, and we are committed towards their prosperity as long as they, too, are committed to our goals.”

“Where products are concerned, our future offerings will better reflect contemporary trends without compromising our fundamentals – space, practicality, quality, dependability, fuel efficiency and unparalleled value,” said Dato’ Zainal.

Perodua aims for 9% increase in sales volume to 240,000 units in 2021

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Cautiously optimistic about the future, Perodua has set a target of delivering 240,000 vehicles in 2021 – a 9% increase from the 220,163 units sold in 2020 which got it a 41.6% market share and continued market leadership The 2021 target is close to the volume achieved in 2019 which was 240,131 units.

For 2021, the Malaysian Automotive Association has forecast a Total Industry Volume of 570,000 units. This is 8% higher than the 529,434 units achieved in 2020.

The Malaysian carmaker continues to see strong demand for its existing models, with help from the sales tax exemption being extended until June 30 this year. “With the extension of the sales tax exemption to end-June 2021, recent COVID-19 vaccine developments and all our models continuing to be in demand, we believe 2021 will be the year of recovery,” said Perodua President & CEO, Dato’ Zainal Abidin Ahmad.

He added that Perodua, and the Malaysian automotive ecosystem, appreciates the support for the industry and will extend its full cooperation to the government in ensuring that all standard operating procedures are followed in regard to COVID-19.

*Transmissions for Perodua vehicles are produced locally at a factory in Negeri Sembilan.*

Purchasing more from local suppliers
Dato’ Zainal said that with the estimated recovery of Perodua’s sales volume, the carmaker is expected to purchase a record RM6.5 billion worth of locally-sourced components in 2021. “In addition, with 2020 ending better than previously expected for both Perodua and the industry, we are looking to increase our stock by boosting our production target to 272,000 vehicles this year – the highest in our history. This increase will replenish our stock to ensure brisk delivery this year,” Dato’ Zainal added.

Perodua’s 2021 production target represents a 23% increase over the 220,968 units manufactured in 2020, and with all its models having over 90% local parts content, the carmaker remains the biggest buyer of automotive components in Malaysia.

**Myvi was most popular again**: Of the 220,163 units sold in 2020, Perodua registered 66,330 Myvis (30.1%), 59,651 Axias, 56,996 Bezzas, 22,494 Aruz, 14,691 Alzas and one other model.

Transforming for customers’ benefit
“In our efforts to further win our customers’ support, Perodua will transform our approach in every aspect, be it in customer engagement, values or even our operations – especially in our sales arm, Perodua Sales Sdn Bhd,” Dato’ Zainal said.

He explained that this approach, called ‘Perodua Smart Build’, will revolutionise Perodua’s offerings while further improving the compact car company’s operational capabilities. “More information and impact of the Perodua Smart Build initiative on Perodua, our partners, the automotive ecosystem and our valued customers will be announced in the near future,” he said.

Perodua is also expecting its service intakes to grow 20% from 2 million units in 2020 to 2.4 million units in 2021, comprising both current and new customers. With the huge volume of its vehicles on the road all around the country, the aftersales side of the business obviously generates a lot of income.

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