Automotive Industry and Car

Topics: Daihatsu, Automotive industry, Perodua Pages: 22 (6811 words) Published: August 12, 2011
Company History

Perusahaan Otomobil Kedua Sdn Bhd (PERODUA), established in 1993, is a joint venture company between Malaysian and Japanese partners. The shareholders of Perodua are UMW Corporation Sdn Bhd with 38% stake, Daihatsu Motor Co. Ltd. (20%), MBM Resources Bhd (20%), PNB Equity Resources Corporation Sdn Bhd (10%), Mitsui & Co. Ltd (7%) and Daihatsu (Malaysia) Sdn Bhd (5%).

Perodua mainly produces small-compact cars therefore does not directly compete with Proton for the same market niche. In the United Kingdom their cars are sold by Proton dealers who wish to attract customers seeking a smaller and cheaper alternative to the Proton range. Besides the UK and Singapore, Perodua also exports their cars to Brunei, Fiji, Sri Lanka, Nepal And Mauritius in small numbers by local dealers.

The company started operations in 1994 and the ever so popular Perodua Kancil was introduced to the Malaysian market in August the same year. To date, the following vehicles have rolled out of the Perodua plant:

• The Perodua Rusa - March 1996

• The Perodua Kembara - August 1998

• The Perodua Kenari – June 2000

• The Perodua Kelisa – August 2001

• The Perodua Myvi – May 2005

• The Perodua Viva – May 2007

• The Perodua Nuatica 4WD – May 2008

• The Perodua Alza – November 2009

As of 30 September 2010, Perodua has sold some 1.85 million units of vehicles of various models. Perodua headquarters is located on an 138-hectare site in Sungai Choh, Rawang, Selangor Darul Ehsan. It houses among others Perodua corporate building, R&D testing laboratories and styling studio, vehicle test track, manufacturing plant, engine plant, pre-delivery inspection area, vehicle distribution stockyard and parts warehouse. Perodua Auto Corporation Sdn Bhd (PCSB) was established in the final quarter of 2001. Besides Perodua, the two other joint venture partners of PCSB are Daihatsu Motor Co. Ltd. and Mitsui & Co. Ltd both of Japan. The manufacturing operations of the Perodua Group are being managed by PCSB.

Recent Company Development

As compared to Proton, Perodua has been quite successful in its business ventures. Its cars are very popular among Malaysians such as the recently introduced Perodua Myvi, which sold 7413 units in October 2010, outselling its rival’s bestselling car, the Proton Saga, which only sold 6535 units in Malaysia. In 2009 and 2010, Perodua became the bestselling car company in Malaysia. It is because Perodua knows how to fulfill the customer needs such as saving the transportation cost, customers don’t need spending a lot on petrol. Effect of the economy recession, consumers would like to buy a car which can save cost.

The company knows Perodua Myvi has good market demand, without losing such great opportunity, at July 07, 2010; Perodua launched a Myvi Limited Edition (Myvi LE)with added features to make it even more appealing to Malaysians. The new car has been given a fresh exterior look with newly design fog lamps, front grille, hood, grade mark with exclusive "Limited Edition" and emblem while the interior has been updated with new exclusive fabric, decorative cubic painting centre cluster, silver painted & chrome finishing steering wheel, chrome door inner handle. For further comfort and satefy, radio CD-player with MP3/WMA,USB & Bluetooth and dual SRS airbags at driver & passenger have also been added in. Prices for the Myvi LE range between RM48,100 to RM48,600. New colour has been added; Dazzling Red.

SWOT Analysis


80/20 rule

The price that offered by Perodua is cheaper compared to other competitors. Almost 80% of Malaysians are affordable to purchase Perodua’s product. 80% of Malaysians are employees; they can’t afford to pay more in buying a vehicle. So that, Perodua’s car will become one of their choices when they are planning to buy a car. According to 80/20...
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