Organization Background
Perusahaan Otomobil Kedua Sendirian Berhad which is also known as Perodua is one
of the largest car manufacturers in Malaysia followed by Proton. Perodua was established in
1993 where they collaborated with Daihatsu Motor Company of Japan to provide the public
with a better and high-quality services. This also gives an image of Japan association.
Perodua has sold over 650,000 EEVs in the past which make them as Malaysia’s first and
biggest Energy-Efficient Vehicle (EEV) manufacturer (“Welcome to Perodua”, n.d.). This is
also one of the Perodua’s commitment to provide Malaysian with vehicles that are affordable
to own and buy.
The automotive industry in Malaysia is one of the important and significant
manufacturing industries in Malaysia. This industry contributes almost RM30 billion to
Malaysia’s GDP and has provided employment to about 710,000 people. There are 27
different manufacturing and assembly plants which produce passenger and commercial
vehicles, motorcycles and scooters (“Automotive Industry”, n.d.). By this, Perodua and
Proton are acting as the highly owned car brand in Malaysia as around 90% of Malaysian
own a Perodua or Proton. In the first half of 2019, Perodua and Proton sold 165,300
passenger cars, accounting for 61.1% of total units sold for the period (Rahmi, 2019). Since
Proton and Perodua take place in automotive industry in Malaysia, demand for cars is
increasing for each year.
The top 3 competitors of Perodua are Proton, Nissan and Honda where the
competition between Proton and Perodua is more severe as both companies’ production is
almost the same. Proton which is also known as Perusahaan Otomobil Nasional is Malaysian
sole’s national brand car manufacturer which was being established in 1983. Before Perodua
was established, Proton was the only leading car manufacturer in Malaysia. The close
competition can be seen by their close number of sales. Perodua sold 240,341 units in 2019
with a rise of 5.8% compare to 2018. Proton was in second place with 100,183 units sold
which is a 54.7% increase compare to 2018 (Salena, 2020). Besides, Proton has higher
investment capabilities as compare to Perodua. This might lead to Perodua being overtaken
by Proton in terms of R&D investment.
Perodua mainly targets middle- and upper-class public as their important car segment
is mainly on mini and super mini cars. The mostly owned cars are the Perodua Myvi, Axia,
and Bezza. As the demand for these cars increase, this actually increase their market share by
45% in 2019. Besides, due to the increase in fuel price, public would prefer to use small car
in order to save petrol. A smaller car has a lighter weight where it is less taxing on the car.
This would increase the profit of companies who produce small and affordable car like
Perodua and Proton.
Welcome to Perodua. (n.d.) Retrieved Feb 20, 2020 from https://www.perodua.com.my
/corporate-branding/about-us.html
Automotive Industry. (n.d.) Retrieved Feb 20, 2020 from https://www.miti.gov.my/miti/
resources/2._Automotive_Industry_.pdf
Salena, P. (2020). Perodua tops 2019 passenger vehicle sales with 240,341 units. Retrieved
Feb
20, 2020 from https://www.freemalaysiatoday.com/category/nation/2020/01/23/perodua-
tops-2019-passenger-vehicle-sales-with-240341-units/
Rahmi, Y. (2019). Perodua and Proton’s rise hurting Japanese rivals. Retrieved Feb 20, 2020
from https://themalaysianreserve.com/2019/07/24/perodua-and-protons-rise-hurting-
japanese-rivals/
