RAWANG: Perusahaan Otomobil Kedua Sdn Bhd (Perodua) is maintaining its full-year sales target of 247,800 units following the end of the Sales & Services Tax (SST) exemption despite foreign labour shortages, mainly faced by vendors, as well as shortages of parts.
Perodua president and CEO Datuk Zainal Abidin Ahmad said while problems on foreign workers from Myanmar and Nepal have been resolved, those concerning Bangladesh have not. Other steps to make sure sales target can be achieved include working closely with suppliers and in some cases providing Perodua staff to work at vendors’ premises.
“We hope the manpower issue can be resolved quickly as the impact to the industry and to some extent the country is significant,” he told a press conference at Perodua Mid-Year Get Together with the media today.
The group has no plans as yet to offer more competitive salaries to attract workers.
“We are following the government’s proposition of RM1,500. Whether it is enough or not enough depends on the government announcement. For us in Perodua, our workers are satisfied with what we are offering. Now, our only focus is to make sure we produce and deliver the cars before the end of March next year.
“Our production capacity now is about 28,000 per month. We can produce more than 240,000 up to the end of March next year. So don’t worry, customers who book before June 30, rest assured, they will enjoy the SST exemption,” Zainal Abidin said.
Perodua has received bookings for 200,000 units, which need to be fulfilled by March 31, 2023, the last day for registration of SST-exempted cars.
In terms of margin compression, Zainal Abidin said Perodua will be able to absorb whatever cost increase it is facing.
There was a significant rush in vehicle bookings, especially when the government extended the registration period to March 31, 2023. In the first six months of this year, Perodua sold 127,343 vehicles, a 30% jump from 97,290 units sold from January to June 2021, on the back of strong demand for vehicles due to the sales tax exemption deadline.
Of the 127,343 units registered, the Perodua Myvi remained the most popular model with 8,059 units followed by Perodua Axia (29,183 units) and Perodua Bezza (28,719 units). However, Perodua Bezza has been gaining popularity as the most sought-after model.
“On the last day of the initiative, Perodua saw the highest single booking day on June 30, 2022, the last day of the sales tax exemption with 25,100 vehicle orders taken,“ Zainal Abidin said.
Aside from the sales tax exemption initiative that ended on June 30, 2022, the other key factor contributing to this performance was the low registration of vehicles in June last year due to the second movement control order to reduce Covid-19 cases.
In June 2022, Perodua sold 21,164 units while in June 2021, it registered 1,009 units. On a month-to-month comparison, Perodua’s sales increased 10.7% from 18,901 units registered in May 2022.
Zainal Abidin said the increase in registrations in June 2022 was also due to better supply parts compared with May 2022.
However, he noted that issues such as skilled labour and parts shortages are still present and asked for understanding from customers in terms of delivery.
Source: The Sun Daily
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