||Asean Affairs 18 June 2013
Proton makes makes Saga SV cheaper to win bigger market share
PETALING JAYA: Proton Holdings Bhd has turned aggressive with its aim to control 30% of the B-segment market by year-end, with more offerings for the public.
Its current 24% B-segment market share would be given a boost after the national carmaker launched the new Saga SV, which saw a further RM5,000 or 12% reduction in prices, without compromising on features, and at prices starting from RM33,438, is the cheapest among its competitors.
Among the B-segment cars includes the Proton Persona, Nissan Almera, Honda City, and the Toyota Vios, and is the more popular choice in the country among young executives and new families.
Proton executive chairman Tan Sri Mohd Khamil Jamil said the Saga would continue to drive volume for the national carmaker.
He said the national carmaker aimed to become the overall market leader again in three years.
Up till April this year, the national carmaker's overall market share stands at 21.3% of the passenger market, still below its closest competitor Perusahaan Otomobil Kedua Sdn Bhd's (Perodua) 30.6% slice of the pie.
“With the new Saga variant, we are targeting to sell an additional 2,000 cars on top of our monthly sales of about 5,000 units of Saga FLX.
“Hopefully the new product offering will garner support of the Malaysian public,” he said at the launch of the Saga SV.
This would see Proton selling about 80,000 units of the Saga annually, and is expected to contribute positively to its revenue and bottom line.
“The reduction is a holistic approach that we have taken up, whereby we passed on the savings back to the public after working with our vendors to bring the build-of-material (BOM) costs down,” he said.
He said this was done via means of value engineering after working hand in hand with its vendors.
“Our reduction does not compromise on quality and features. This is not the unsustainable way of price slashing by removing key features and at the expense of margins,” he said.
He said Proton was also working on the same programme to study ways to make its current line up more affordable, and is part of its support to the Government's initiative to lower down car prices.