Perodua chief downplays knee jerk reaction on Geely’s Malaysia entry

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Picture Credit: Chinaautoweb.com

Perusahaan Otomobil Kedua Sdn Bhd (Perodua) CEO Aminar Rashid Salleh today said the company was concerned with the entry of the Chinese auto giant Geely promising to smash the local market with new car models.

Geely had signed a definitive agreement with Malaysia’s ailing national car maker Proton that will see the Chinese company take up a significant stake in the Malaysian carmaker, and its Lotus subsidiary.

As part of the deal, Geely is to roll out its popular Geely Boyue, which has been previously confirmed as the first new Proton model in the Geely era according to the Chinese company.

The Boyue will be Proton’s first-ever SUV and as Perodua does not have an SUV in its current line-up, Proton’s Boyue will also be the only SUV with a local badge in the market.

It will put Proton in the lead in a segment where Perodua is missing and this might cause a shift in the market share between the two competing local giants.

However, the Perodua chief said though they are concerned about the partnership they are focussing on what matters most, that is needs of their customers.

He said in order to counter any negative impact of the Geely entry in the market with Proton, the company is rolling out its transformation 2.0.

He said the company will continue to defend their 35% market share as Perodua has provided job and business opportunities to the ecosystem.

During today’s press conference, he said: “We wish them (Geely and Proton) all the best and the partnership was needed to improve the ecosystem.”

Perodua’s export strategy is one of the thrusts espoused in its second five-year business plan, dubbed Transformation 2.0 Roadmap.

The main idea behind the second transformation plan is the company’s aspiration to be a regional auto player by 2021.

But there are doubts whether the company can achieve these plans on its own.

Geely has the expertise, the manpower and the cash to push Proton to greater heights, though the Chinese company will have to deal with the inherent and typical problems that have bogged down the national car maker for years.

And these revolve around the ‘mentality’ that has installed itself in the local car producer’s work play.