Perodua to ramp up production to cope with demand

Perodua to ramp up production to cope with demand

20 Jul 2022

Perodua plans to ramp up production to resolve the long waiting time amid the rise in bookings which currently stands at 243,000 units. 

The carmaker is facing a supply shortage of foreign workers and semiconductor chips, resulting in an average waiting time of between six and seven months depending on car models, said president and chief executive officer Datuk Zainal Abidin Ahmad.

To solve the chips shortage, he said Perodua has sought alternative suppliers so that it can source from other vendors, he told reporters after the launch of the new Perodua Alza model.

The use of local components can protect Perodua from global market uncertainties, he said, adding that the new Alza has a high local component rate of 95 per cent.

Bookings for the new Alza started on June 23 at RM62,500 for the X variant, RM68,000 for the H variant, and RM75,500 for the AV variant for Peninsular Malaysia with the sales and service tax (SST) but without insurance.

Meanwhile, on the foreign workers issue, that is being resolved incrementally.

“So, for Perodua it would not have a huge impact on production for this year at least. The 2022 sales target is still on track,” he said.

Perodua has targeted sales of 247,800 units in 2022, an increase of 30.2 per cent from 190,291 vehicles sold last year.

Zainal Abidin said production balancing will be done to ensure that the waiting period issue can be addressed, especially among sought-after models like Perodua Myvi, Alza and Aruz.

“We need to manage these models carefully. We need to (come to a) balance,” he said, adding that maybe the waiting time for Aruz can be (adjusted to) less than three months, while for Alza, it can be more than three months.

Zainal Abidin said the company has recorded bookings of 30,000 units, its highest ever. Of its total bookings so far, nearly 15 per cent of it is for the new Alza, he said, adding that the company aims to produce 3,000 units of the model monthly.

About 4,300 units of Alza units are expected to be registered this month, he said.

“The first all-new Alza unit was registered today and will be delivered,” he said. Perodua has invested RM770 million to develop the all-new Alza since April 2018.

On the impact of the SST exemption coming to an end, he said it is too early to assess its impact on demand.

Asked on possible production of electric vehicles (EVs), he said Perodua is still studying the matter.

“It is in the planning stage. We will will make an announcement when there is concrete cooperation with other national companies,” he said.

Prime Minister Datuk Seri Ismail Sabri Yaakob suggested earlier that Perodua forge a cooperation with national utility company Tenaga Nasional Bhd to introduce affordable EV charging rates for the people.

Ismail Sabri said TNB was currently working to increase its energy production by using renewable energy sources and to provide adequate EV charging stations.

“At the same time, Perodua can use this opportunity by exploring new fields such as producing high-quality EVs that Malaysian families can afford,” Ismail said.

Source: Bernama