The newly launched SUV, which is now locally assembled at Proton’s plant in Tanjung Malim, is cheaper by RM1,000 to RM5,000, depending on the variant.
An analyst from a local bank-backed brokerage said the new X70 will certainly sell well, going by its popularity since it was launched in December 2018.
“The new model boasts of a host of upgrades. But most importantly, it is cheaper than its predecessor, which is what will appeal most to local buyers.
“The original Proton X70, which was completely-built-up, was well received when it was launched in late 2018. When it was announced that Proton was going to launch a completely-knocked-down variant, many people held back their purchases in anticipation that the newer one would be cheaper.”
Proton sold more than 26,000 units since it launched the X70 in 2018.
Total vehicle sales finally exceeded 600,000 units in 2019 after failing to surpass that mark for three consecutive years, rising 1% year-on-year to hit 604,287 units.
The pick-up in sales was largely driven by the surge in demand for local car companies, specifically Proton. The national carmaker’s total domestic and export sales for 2019 surged by 36,077 units or 55.7% year-on-year to 100,821 units, making it the country’s second-biggest car seller, a marked improvement from its fourth ranking in 2018.
Overall market share for the year stood at 16.7%, the company’s highest since 2014.
After a gap of 40 months, Proton returned to second spot in total sales for Malaysia’s automotive market in July last year. The last time the company was in a similar position was in March 2016, while the last calendar year it finished second was in 2015.
An analyst said he expects total industry volume to continue being dominated by the national makes this year.
“For Proton, the new X70 will certainly help drive sales until the company launches its X50 in the second half this year. This will definitely benefit DRB-Hicom, ” he said.
Proton is targeting a 30% jump in vehicle sales to 132,000 for 2020, following a stellar performance last year.
The company’s four models – X70, Saga, Exora and Persona – ended December as best-selling models in their respective segments.
DRB-Hicom recorded a net profit of RM40.08mil for its third quarter ended Sept 30,2019, compared with a net loss of RM11.42mil in the previous corresponding period driven by strong demand for Proton vehicles.
CKD X70 and CBU version (below).
Revenue during the quarter increased to RM3.59bil from RM3.18bil a year earlier. DRB-Hicom changed its financial year end to Dec 31 from March 31, previously.
For the nine-month period ended Sept 30,2019, it recorded a net profit of RM86.29mil compared with a net loss of RM78.02mil in the previous corresponding period, while revenue during the period jumped to RM7.03bil from RM5.84bil a year earlier.
In a statement, the company said its automotive division, led by Proton, recorded revenue of RM2.42bil for the three-month period to September 2019, rising almost half-a-billion ringgit against the same period in 2018.
“For the six-month period to Sept 30,2019, revenue was RM4.66bil, up RM1.33bil from a year ago.
“The new X70, the revamped Saga, Persona, Iriz, and Exora have all boosted the brand’s appeal to the market, ” it says.
On the prospects for the remainder of its financial year, DRB-Hicom said it has been steadfast in the prolonged challenging environment, backed by its automotive division.
