Perodua aims to achieve bigger numbers in 2023; targeting 314k sales

KUALA LUMPUR: After ending 2022 on a satisfied note, Perodua is now ready for a bigger run this year. The automaker has announced its production and sales targets for 2023 that are higher than the last year on the grounds of outstanding orders carried forward from 2022 and continued demand for its cars so far this year.

Perodua aims to sell 314,000 units in 2023 which represents a hike of 11.3% over the previous year. Upon setting this target, the company’s President and Chief Executive Officer Dato’ Sri Zainal Abidin Ahmad said, “This year (2023) provides a golden opportunity for us as consumers still have confidence in the automotive market. In fact, more than half of our targeted volume is from bookings we collected last year but have yet to deliver.”

In terms of production, the country's largest automaker will be making 330,000 units with a 14.2% annual growth. Currently, the automaker’s normal installed annual production capacity for Perodua Manufacturing and Perodua Global Manufacturing plants is at 320,000 units on a two-shift cycle. It can increase by improving productivity and by instituting overtime, says Dato’ Sri Zainal.

According to him, the impact of higher production would be significant on the Malaysian automotive industry as the company will be purchasing parts worth RM 10.0 billion from local suppliers to meet its yearly targets.

“The increase in production will give a much-needed boost for our local industries to improve their economies of scale and to better compete with their counterparts abroad,” Dato’ Sri Zainal added.

As for the expansion, Perodua’s head confirmed that a total allocation of RM 1.15 billion has been earmarked for this purpose. The company will be expanding its Pre-Owned Vehicle (POV) and Subscription business, driven by the positive response received by the Ativa Hybrid.

Also read: Perodua Ativa Hybrid Subscription Plan: All you need to know

“We have also allocated RM537.1 million on the development of a new model, as well as RM247.1 million to further modernise our operations, which also include upgrading existing 1S and 2S centres into 3S centres,” Dato’ Sri Zainal said.

Potential risks that the company may encounter in 2023 are higher inflation, an increase in interest rates, and higher external cost factors. On this concern, the company’s head said, “These cost factors, if they rise too steeply, will have a negative impact on the momentum that we are currently on. The increase may not only have the potential to depress the market but also erase gains made by the industry as it was just getting its second wind.”

Also read: 2023 Perodua Axia bookings open, specs and est. prices revealed