Global chip shortage issue affects car deliveries

Bermaz Auto Bhd (BAuto) forecasts the automotive sector to face challenges this year until 2023, as referring to the company's latest annual report.

The obstacle derives from global shortages of semiconductor chips and components impacting delivery delays to the local auto sector due to the Covid-19 lockdown in China.

With the worldwide crisis ensuing, Bermaz Auto shifted to focus on the sales of its Mazda, Peugeot, and Kia vehicles to compete in the market with affordable pricing and improve the company’s dealerships including its aftersales network in strengthening the company’s brand position.

2022 Kia Carnival (interior)

In 2022, the fourth generation Kia Carnival has been debuted with a price starting from RM231,228.80 for the base 2.2D 8-seater variant, RM247,228.80 for the mid-spec 2.2 8-seater (High) variant, and RM261,228.80 for the 2.2D 7-seater (High) range-topper which excludes insurance costs

According to Executive Chairman of Bermaz Auto Berhad, Datuk Seri Yeoh Choon San has stated that it is still eligible for customers who booked their vehicles on or before June 30, 2022, to register them with the Road Transport Department until March 31, 2022 despite the tax incentives have ended.

Image attached only for illustration purpose

Due to solid backlog orders for Mazda, Kia, and Peugeot vehicles which estimately gathered around 12,000 units since the end of June, have affected orders in July which turns out to be slower as expected.

Meanwhile, net profit for the company’s financial year ended on April 30, 2022, was reported to grow from RM133.84 million in the previous financial year to RM155.72 million this year.

The uptick in net profit causes mainly a higher margin from the sales mix of locally built vehicles.

Also, the reports claim that revenue rise by 1.6% to RM2.33billion from RM2.29billion previously, thanks to huge sales contributions from Peugeot and Kia car brands which redeem its lower sales volume from domestic Mazda operations.

Source: The Star