Datuk Zainal Abidin Ahmad
KUCHING: Perodua has voiced its support for the government’s initiatives to sustain Malaysia’s automotive industry amidst the ongoing Covid-19 situation following a recent announcement by the Malaysia Automotive, Robotics and IoT Institute (MARii).
“Perodua is in full support of the government’s aim to fortify Malaysia’s automotive industry in these trying times, and its various initiatives to achieve that aim,” said Perodua president and chief executive officer Datuk Zainal Abidin Ahmad in a press statement yesterday.
“As Malaysia’s biggest carmaker by volume, we are eager and ready to step forward and work with the government to ensure the industry’s continued survival in this difficult time.”
MARii estimates a 28 per cent drop in new car sales this year due to the Movement Control Order (MCO) brought about by Covid-19, and that a minimum 500,000-unit total industry volume is needed in 2020 for automotive businesses’ continued survival.
Among the incentives MARii outlined to stimulate demand are a temporary waiver on down payments, reduced loan interest rates, and joint subsidies between carmakers and the government for road tax and insurance for a limited time period.
“It is indeed a challenging time for all of us, however, Perodua is confident that with the government’s collaboration, the industry as well as its ecosystem of suppliers and dealers will be able to weather the storm together,” said Zainal.
Perodua has sold 52,920 vehicles as of the first five months of 2020, giving it a 41 per cent market share against an estimated year-to-date total industry volume of 129,401 units.
All current Perodua models have over 90 per cent local content, and last year, the carmaker purchased RM5.4 billion worth of components from Malaysian suppliers.
“Perodua is also doing its part to sustain its vast ecosystem of suppliers and dealers. Besides our volume, we assist and support them through investments, purchases and advance purchases, longer credit terms, as well as various operational transformation initiatives and development programmes,” he said.