Proton has announced that the newly-launched 2024 Proton X50 has received an overwhelming response, amassing a total of 8,000 bookings within just one month since its debut in June. This positive demand has far exceeded our expectations, setting a new benchmark for its segment. Since its original debut in 2020, the Proton X50 has been Malaysia’s best-selling SUV, with 115,262 units sold up to June.
Ramp up production to meet overwhelming demand
The enthusiastic reception of the 2024 Proton X50 underscores its prominent position in the SUV market. In response to this overwhelming demand, Proton is ramping up production to expedite delivery timeline for eager customers by August 2024. All customers who are entitled for early bird promotion of RM7,000 cash discount and RM1,000/ RM1,500 trade-in support will receive it accordingly.
Volvo Cars has reported an impressive operating profit (EBIT), excluding joint ventures and associates, of SEK (Swedish Krona) 8.2 billion for the second quarter of 2024. This figure represents the highest quarterly profit in the company’s history and marks a 28% increase compared to the same period in 2023.
Core EBIT Margin and Profitability
The core EBIT margin reached a record high of 8.1%, up from 6.3% last year. This improvement in profitability can be attributed to Volvo’s focus on pricing discipline, internal cost control, and sustained growth in sales.
Sales Growth and Electrification
Global retail sales for the quarter rose by 15% year-on-year to 205,400 cars, driven largely by the company’s electrified vehicle offerings. Sales of plug-in hybrids and electric cars increased by 43% compared to the same period last year. Notably, 48% of Volvo Cars’ global sales volume during the quarter consisted of plug-in hybrid (PHEV) and fully electric (EV) cars, with EVs alone accounting for 26% of sales.
UMW Toyota Motor Sdn Bhd (UMWT) concluded June 2024 on a high note with a monthly sale of 7,600 units. This achievement propels the year-to-date sales to 47,000 units, showcasing the company’s robust initiatives and successful customer-centric promotions.
UMWT’s dedication to providing innovative mobility solutions and engaging in broader community initiatives is evident in this positive sales performance. The company attributes this success to its focused promotional efforts and a steadfast commitment to customer satisfaction and social responsibility.
The sales of diesel vehicles, particularly pickup trucks, are anticipated to drop by over 50% due to the introduction of floating fuel prices. Used car sales advisor Khairil Anwar Jaafar, 45, noted a significant slowdown in sales over the past month, with potential buyers adopting a wait-and-see approach.
As a result, Khairil’s company has decided to temporarily stop accepting diesel-engine vehicles. “The decline in sales has been noticeable for more than a month, even before the announcement of targeted diesel subsidies. We have about 15 to 20 diesel vehicles that remain unsold,” he said.
UMW Toyota Motor Sdn Bhd (UMWT) reported a successful month in May 2024, achieving total monthly sales of 8,422 units for both Toyota and Lexus brands with the Toyota Vios and Corolla Cross being the two best-selling models. This brings the total year-to-date sales to 39,211 units.
Commitment to Community and Environmental Sustainability
UMWT remains dedicated to community engagement and environmental sustainability, as demonstrated by its various initiatives. The 23rd Toyota Eco Youth (TEY) program, launched in collaboration with the Ministry of Education, is a key example. This national-level program empowers students aged 13 to 17 from 16 schools across Malaysia. The initiative promotes Toyota’s 8 Steps Problem-Solving Method (PSM) to develop critical thinking and problem-solving skills. Since its inception in 2001, the TEY program has engaged over 300,000 students from 521 schools, fostering a legacy of environmental stewardship. TEY 2024/2025 offers cash prizes totalling up to RM80,000, incentivising innovative solutions and aligning with UMWT’s environmental action plan to achieve zero CO2 emissions by 2050.
Proton has reported a significant 13.6% increase in sales for May, with 12,522 units (domestic and export) sold. This surge has cemented the company’s second position in the national automotive sales ranking, achieving a forecast market share of 19%. The company’s sales for the first five months of the year closed at 62,697 units.
The growth in Proton’s sales aligns with the overall trend in the Total Industry Volume (TIV), which is estimated to have grown by 20.7% to approximately 70,000 units in May. The year-to-date (YTD) TIV figure is estimated at 330,236 units, marking an 8.8% increase over 2023.
Export Sales Surge
Proton’s efforts to expand into international markets, including Trinidad and Tobago, Bangladesh, and Iraq, have been fruitful, with export sales reaching 509 units in May—the highest shipment recorded for 2024 so far. Since February, the best-selling export model has been the Proton Saga, leading with 360 units exported in May. Cumulative export sales have reached 1,344 units since January.
Proton has achieved its best January sales performance since 2013 by selling 12,882 units (domestic and export). This marks a 1.3% increase compared to December 2023 and a significant 10.3% increase compared to January of the previous year. With this strong start, Proton comfortably retains the second position in the sales table, and its estimated market share for the month is 19.5%, showing a 3.3% increase from the previous month.
The Total-Industry-Volume for January is estimated to be 66,134 units, reflecting a decline of 15.6% compared to December. This drop is attributed to the traditional year-end push for higher vehicle sales in December 2023.
The newly launched Proton S70 has made a notable impact, with 1,442 units delivered in January and over 8,000 bookings. The model has received a positive response from customers and has already made its way to an export market in Brunei, with 15 units delivered ahead of its official launch this month.
In a recent report, RHB Research forecasts a decline in the total industry volume (TIV) for car sales in Malaysia, estimating a decrease to 625,000 units in 2024 after achieving a historic high of 799,000 in 2023. The research firm remains circumspect about the industry’s outlook, citing a lack of compelling factors to propel sales and earnings to new peaks.
As reported by NST, the year 2023 witnessed a robust performance, with the total production volume reaching 774,000 units. This surge was attributed to pent-up demand and the introduction of new car models. Notably, the second half of the year experienced an 18% uptick in TIV compared to the first half.
RHB Research attributes the exceptional sales performance in 2023 to pent-up demand and underscores the absence of similar catalysts in 2024. The research maintains a neutral stance on the auto and auto parts industry, with Bermaz Auto (BAUTO) identified as a top pick due to its 10% yield and resilient car sales.
Chinese automaker BYD has reported a significant milestone in its electric vehicle (EV) sales, with a record-breaking 3,024,417 new energy vehicles sold in 2023. This figure represents a remarkable year-on-year increase of 62.3%, surpassing the previous year’s sales record of 1,863,494 vehicles.
The impressive growth in sales is attributed to BYD’s commitment to new energy vehicle production, with 3,045,231 units manufactured in 2023—a 62.2% increase compared to the previous year. The commercial vehicle segment played a crucial role, recording sales of 11,511 units, including electric buses, trucks, and other vehicles, experiencing a notable uptick of 88.2%.
In the passenger car business, BYD’s sales reached 3,012,906 units, marking a year-on-year increase of 62.2%. Notably, the sales of pure electric models surged, totalling 1,574,822 units with a robust year-on-year growth of 72.8%. Battery electric vehicles (BEVs) accounted for 52.3% of total passenger car sales, reflecting increasing consumer preference for electric mobility.
Perodua has reported a remarkable 28.3% increase in sales for the third quarter of 2023, compared to the same period in 2022. In this quarter, Perodua sold 88,537 units, a substantial growth from the 69,011 units sold during the third quarter of 2022.
This surge in sales can be attributed to Perodua’s efforts to enhance production operational efficiency. In the third quarter of 2023, Perodua manufactured a total of 91,528 units, marking an impressive increase of 21.7% when compared to the 75,196 units produced during the same period in 2022.
The third quarter of 2023 marked the beginning of an initiative to boost the company’s monthly production to over 30,000 units per month. This became possible as supplies of raw materials and parts could finally meet the rising demand.
For the year-to-date figures, Perodua has produced 245,341 units as of September 2023. This represents a substantial 18.6% increase from the 206,837 units produced during the same period in the previous year. This growth showcases the potential of the Malaysian automotive ecosystem, as it continues to enhance economies of scale without compromising quality and cost efficiency.
In terms of year-to-date registrations, Perodua reported 233,227 units for the first nine months of 2023, compared to 196,354 units for the same period in the previous year. Among these registered units, the most popular Perodua model during this period was the Perodua Bezza, followed by the Perodua Axia and the Perodua Myvi.
Perodua is on track to achieve its registration target of 314,000 units for this year. In September 2023, the company registered 28,995 units, marking a 17.7% increase compared to the same month in 2022. In terms of production, Perodua manufactured 31,447 cars in September 2023, reflecting a 8.2% increase from the 29,077 units produced in September 2022.
