How Perodua took the Malaysian market by Storm

The two big time rivals of the Malaysian auto market, Proton and Perodua are the real game changers. These two manufacturing giants obtain the maximum share of the Malaysian auto market competing with others like Toyota, few Japanese ventures and small production units.

Looking over the current figures of sales of Perodua, which is assumed to be a national maker now have the lion's share, leaving behind Proton which had a significantly higher share till 2010-11. Although, the Malaysian Automotive Market squeaked under the GST effect following the sharp fall reported in the month of May 2015. The local manufacturing units have faced widely negative loose of 9 percent over the market from the previous year. However, Perodua kept its position intact and managed to rage the momentum.

Out of the total Malaysian market, 50.3% of the May 2015 market was controlled by local makers. Of which, Perodua being on top of the list with mammoth figures of 17.290 vehicles sold at 34.0% share, which was still down to 5.4 points from the stellar previous month's performance. According to a report, its year to date sales were 92.027 (+29.8%). Considering all these stats Perodua maintains its high position with 33.7% of market share ahead of Proton with 16.2%, Toyota with 16.0% and Honda with 12.1%.

The reasons behind the success of this manufacturing unit are combined efforts put by the engineers, new and innovative business approach and sentimental value of the trust that Malaysians surmise for Perodua. Few points, considering the same:

- 770$ million investment for company's growth

- As of February 2015, total number of manpower of Perodua was about 11,000

- The plant has the capacity to produce 350,000 units per annum

- PSSB has 182 sales branches and 183 service branches nationwide Vehicles are sold in countries like Singapore, Indonesia, Nepal, Brunei, Fiji, Mauritius and Sri Lanka

The investment of 770$ million includes a second car plant planning in order to boost indigenous production by 50 percent, as said by the company at a press conference in Kuala Lumpur on January 2015. Perodua sold over 189,000 vehicles in 2012 which is its highest ever sales record, accounting for an estimated market share in Malaysia of 30.2%.

The company is now focusing on low-priced compact cars of which the Myvi, based on the second generation Daihatsu Sirion and Toyota Passo, is the most popular. The launch of its Myvi brand proved to be another milestone for the company and resulted in a sales drop for its competitor Proton. It has ramped up its competitiveness in other areas as well, such as quality improvement and cost cutting measures.