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Perodua’s Backlogged Orders Decrease to 155,000 Units – RHB Research

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The Malaysian automotive industry has been experiencing shifts in market dynamics that are reshaping the landscape for major players like Perodua and Toyota, both under the umbrella of UMW Holdings Bhd. Recent data and insights reveal significant changes in order backlogs and sales trends, signaling adjustments within the industry.

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Order Backlogs Decline

Preliminary data from RHB Investment Bank Bhd indicates a notable reduction in order backlogs for both Perodua and Toyota. In August 2023, Perodua’s backlogs dropped to 155,000 units, down from 220,000 units in February and 190,000 units in May of the same year. A similar trend was observed for Toyota, with backlogs declining to 40,000 units in August, compared to 50,000 units in February and 52,000 units in May.

Factors Behind the Drop

Analysts attribute this decline primarily to the wave of new car launches earlier in the year and the lack of new incentives to sustain the high backlog levels. This suggests that consumers may have responded positively to the new models introduced.

Perodua’s Sales Performance

Over the past six months, Perusahaan Otomobil Kedua Sdn Bhd (PERODUA) successfully sold 144,690 units, compared to 127,343 units during the same period the previous year.

Toyota’s Sales Growth

UMW Toyota Motor recorded sales of 57,008 units from January to July 2023, reflecting an 8.5 percent increase compared to the same period last year.

Sales Projections

Despite the backlog reduction, UMW management remains optimistic about reaching their sales targets for both Toyota and Perodua, aiming for 93,000 and 314,000 units, respectively, by the end of the year. However, the article forecasts a more moderate sales outlook for the following year (2024) due to the declining order backlogs.

Economic Factors Impact Sales

RHB Investment Bank noted that vehicle sales in the second quarter slowed down due to a shorter period and scheduled shutdowns at production facilities.

Margin Impact

While Perodua’s sales declined by 16 percent, the contribution from UMW subsidiary declined by 37 percent. This was attributed to labor costs (bonuses), local spare part prices, and the depreciation of higher-end new models. Conversely, Toyota’s revenue decreased by 6.0 percent, but margins are expected to remain robust.

Sime Darby’s Stake Purchase

In a recent development, Sime Darby Bhd entered into a conditional share purchase agreement with Pemodalan Nasional Bhd (PNB) to acquire a 61.2 percent stake in UMW Holdings Bhd. Once the agreement becomes unconditional, Sime Darby plans to make a public offer for the remaining 38.8 percent of shares with the aim of delisting UMW Holdings from Bursa Malaysia. This acquisition is expected to position Sime Darby as a major player in the Malaysian automotive industry.

Source : Berita Harian

Conclusion

In conclusion, the Malaysian automotive industry is evolving in response to changing market dynamics, with a focus on adapting to consumer preferences and economic conditions. While the reduction in order backlogs may signal a shift in consumer behavior, the industry remains resilient, and key players like Perodua and Toyota are poised to navigate these changes successfully, particularly with strategic moves like Sime Darby’s stake acquisition. The coming years will be crucial for the industry as it strives to maintain growth and stability in a dynamic market environment.

If you’re considering purchasing a new Perodua car in light of the recent developments in order backlogs, you can explore the latest Perodua models and pricing options by visiting this link (Harga Kereta Perodua 2023). Stay informed about the available choices and promotions to make an informed decision on your next Perodua vehicle.

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