MIDF upbeat on Perodua to exceed sales target

KUALA LUMPUR (Aug 5): MIDF Amanah Investment Bank Bhd said Perodua may outperform its internal total industry volume (TIV) target of 247,800 units this year, in light of higher production.

It is understood that Perodua has tried to increase production to around 26,000 units per month in the second half of 2022, verses an average of 21,700 units per month in the first half, in order to shorten its waiting list, the research house said in a note on Friday (Aug 5).

"Perodua managed to garner around 24,265 new bookings in July, equivalent to around a month of Perodua TIV, despite the expiry of the sales tax exemption since June 30 this year.

"The strong July bookings signal strong sales momentum, which we think is partly driven by the recent launch of the new Alza, and broadly, a pent-up demand amid a gradually improving labour market in line with the macro recovery," MIDF said.

Perodua has also secured its supply of chips for the rest of the year to achieve its record annual TIV target of 247,800 units for 2022, a 30% year-on-year rise, the house said.

"Perodua is also looking at sharing resources with its vendors such as workforce placement, warehouse sharing and parts arrangements to address foreign labour shortage issues at the vendors, to ensure a smooth domestic supply chain.

"We anticipate these efforts to result in cost savings to a certain extent, which would help cushion the impact of higher material and logistic costs," it added.