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by RAHIMI YUNUS / photo by MUHD AMIN NAHARUL
PROTON Holdings Bhd’s highly anticipated new SUV, the X50, is expected to impact the sales volume of other models from different brands in the same class, including those in the DRB-Hicom Bhd portfolio.
Roslan Abdullah, CEO of Proton Edar Sdn Bhd, said that the X50, the company’s first B-segment SUV, offers the latest technology with more affordable prices than other competing models that were introduced a few years ago, giving it to the model an additional advantage.
He said the models that could be hit the hardest by X50 competition are likely from Japanese manufacturers, compared to mainland brands, as the latter is in a different market segment and is relatively small compared to other mass-market vehicles. .
“Some of the models were introduced four or five years ago, while the X50 comes with the latest technology. If we look from that perspective, of course, they should be affected, but at the moment, I can’t say how much the impact would be because each brand has its own strength and loyal following, ”said Roslan. Malaysia Reserve (TMR) on the X50 media preview in Sepang recently.
In segment B, he said customers will be able to choose between Proton’s X50 and other cars from different brands.
He noted that price could be the most important factor determining the local market.
“When selling cars, we touch customers emotionally and sometimes the most important factor for the Malaysian market is price. We are providing the product with an affordable price and superior technology ”, he added.
DRB-Hicom, which has a 50.1% stake in Proton, while Zhejiang Geely Holding Group Co Ltd has 49.9%, controls more than 30% of the market share in the local automotive industry through a distribution and / or companies jointly controlled by Honda, Mitsubishi. , Isuzu, Volkswagen, Audi and Tata commercial vehicles.
The group also meets Mercedes-Benz cars in Pekan, Pahang.
The X50 is in the same class as Honda HR-V, Toyota C-HR, Mazda CX-3, Mitsubishi ASX, Volkswagen Tiguan, Audi Q2, and Mercedes-Benz GLA 200, among others.
Kenanga Research analyst Wan Mustaqim Wan Ab Aziz said that HR-V and CX-3 would be among the X50’s closest competitors.
Said Honda CR-V, BR-V and also the older brother of the X50, the X70, could be competing indirectly with the X50 despite the fact that they are seven seats.
“People who can afford to buy those B-segment SUVs can choose the X50. There is also an alternative option between the X70 and the X50, ”said Wan Mustaqim. TMR.
In the media preview, Roslan said the X50 is “capable of competing with some brands that Proton normally doesn’t compete with before” given its technological advancement and economic advantages.
As for DRB-Hicom, Wan Mustaqim agreed with Roslan that the X50 may have an impact on some of the other brands in the group, particularly Honda models.
Proton had an estimated 16.7% market share at the end of last year and secured the No. 2 position behind Perusahaan Otomobil Kedua Sdn Bhd (Perodua) and ahead of Honda Malaysia Sdn Bhd in third rank.
Proton closed 2019 at 100,821 units, 55.7% more than in 2018 and the first time it crossed 100,000 marks since 2015.
Perodua delivered a higher volume of 227,243 units in 2018 to 240,341 units last year.
Honda posted a decline in sales from 102,282 units in 2018 to 85,418 in 2019, but maintained the number one spot as a non-domestic automaker.
Wan Mustaqim said Honda’s sales for this year are expected to increase as a result of the new launches.
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