PROTON’s Automotive Sales Witness Decline For May, To Focus Plans For The Future

After two consecutive months of strong sales, Proton Holdings Bhd (PROTON) faced a reduction in sales of approximately 37.1 percent compared to the previous month, which accumulated 9,440 units (domestic and export) sold. 

This was also affected by Malaysia's automotive industry which receded to around 20 percent in May due to chip shortages as well as the national Movement Control Order (MCO) in effect. 

Up to the end of May, total volume was 57,283 units, with a year-to-date market share of 23.5 percent, a 2.4 percent increase over the previous year.

The Proton Saga lost its overall market lead in April, but it still finished the month as the A-segment sedan sales leader with 3,786 units delivered. The Saga is one of four Proton models to top their respective classes.

Similar to the previous month, both the Proton X50 and X70 continue to lead their segments by a significant margin - the smaller SUV achieved 1.899 units while the latter obtained 3,786 units delivered to Malaysians and overseas customers in May. The Proton Exora, the company's fourth segment leader, maintained its rigid position at the top of the C-segment MPV class.

Additionally, PROTON’s overseas sales continue to gain momentum, despite international markets going through different phases of lockdown. 

In May, the company's international sales division exported 669 units of the Proton Saga, Proton X50, and Proton X70, marking its best month since March 2013. As a byproduct, total export sales for 2021 are now less than 100 units behind total export sales for the entire 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, our 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 Proton Edar chief executive officer, Roslan Abdullah.

With the current lockdown which was in effect since June 1, car sales were to be suspended for at least two weeks or more, depending on the duration of the MCO. Unlike last year, service centers are permitted to operate, as such PROTON will accept cars from users who have scheduled appointments.

The company is also in plans of utilizing the break to reshape its sales plan for the remainder of 2021. This was in effect due to the boost by the extension of PENJANA incentives until the end of the year, as well as to take steps 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.

“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,” added Roslan Abdullah.