business

Proton sales down 41pct in March, rise in first 3 months

KUALA LUMPUR: Proton Holdings Bhd’s sales rose 20.4 per cent year-on-year (YoY) to 21,757 units in the first quarter (Q1) of 2020, contributed mainly by the Saga, Iriz and Persona.

The national carmaker said this increased its share of the total industry volume from 17.4 per cent in Q1 2019 to 20.1 per cent.

Proton, which is a 49.9 per cent owned by Zhejiang Geely Holding Group, said it had sold a total of 3,277 units in March, or 41 per cent decrease from March 2019 and a 67 per cent reduction from February 2020.

Proton said the lower sales recorded attributed to Movement Control Order (MCO), which has affected all its sales outlets due to closure since March 18.

It added that the closure was expected to affect its car sales drastically this year.

The Saga saw its sales increased 36 per cent to a total of 8,824 units in Q1.

The Iriz grew 602 per cent with 2,009 units, while the Persona posted a 243 per cent gain with 5,677 units, followed by the Exora which rose 17 per cent to 1,091 units.

Proton’s sport utility vehicle the X70 posted a 48 per cent reduction in sales with a total of 4,145 units sold in Q1.

Proton chief executive officer Dr Li Chunrong said although its performance in January and February was strong and far ahead of 2019, the momentum was slowed due to the MCO.

“However, the safety of Malaysia and our people is far more important than any commercial considerations, so we stand by the government on the measures taken,” he said in a statement today.

Proton expects 2020 to be challenging as the fallout from Covid-19, saying that the pandemic would put businesses in unchartered territory even after the MCO ends.

Proton will continue to operate with its staff working from home and a skeletal workforce, approved by the International Trade and Industry Ministry, while maintaining critical equipment at its facilities.

“We are using this time to strategise and plan our next moves. Challenge is something that we embrace. In a sense, because Proton has fought to return to a much stronger position, my team and I are prepared to weather this storm.

“Considering our improvement over the last two years, I am quietly confident that Proton will be able to overcome this crisis as we stay focused on our long-term goals,” Li added.

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