Proton's January sales eroded by flash floods

By CARSIFU | 7 February 2022

SUBANG JAYA: Proton sold only 4,453 cars in January as a result of the knock-on effect of the severe flooding in Selangor at the end of 2021.

After ending the previous calendar year with its highest annual sales figure since 2014, volumes for the first month of the new year have dropped due to a lack of available stock.

The figure of 4,453 included export sales, and was a reduction of 25.3% from the same month in 2021 and equivalent to an estimated domestic market share of 11.3%.

Parts supply issues affected production of all models.

PROTON service centre

While Proton’s production facilities in Shah Alam and Tanjung Malim were unaffected by the floods in
December, the company’s vendors were not as lucky.

Many have production facilities in Shah Alam and were thus hit by rising flood waters. This had a direct effect on production volume in January, leading to a shortage of units to fulfil orders.

The situation was further compounded by minimal carry-over stock from the previous month as the company worked to close the gap between supply and market demand.

“After a successful end to 2021, January was a very tough month for Proton," said Proton Edar chief executive officer Roslan Abdullah.

"Our short supply situation became magnified by the lack of units being produced, creating a severe shortage for our dealers. Thankfully, production for all our models resumed in January, though some required more time than others.

"We are, however, confident of meeting our targets for 2022 based on market projections as well as our sales and marketing plans for the rest of the year.”

Among all models, the X50 and X70 were the firsts to resume production and this was reflected in their January sales volume.

A total of 2,601 units of the X50 and 799 units of the X70 were delivered last month and although the individual totals were modest compared to the previous month, combined they helped to position Proton as the number one SUV brand in Malaysia.

PROTON service centre2

One and a half months after the December floods took the nation by surprise, over 1,200 flood affected Proton vehicles have been received at authorised service centres.

They are then divided into four categories, depending on the severity of the damage suffered, before assessments are made and repairs get under way.

“Proton would like to remind all customers with flood damaged cars to send their vehicles to our network of
authorised service centres to enjoy benefits such as free towing and car wash services as well as discounted
parts and labour charges.

"We are also thankful to the government for the RM1,000 assistance voucher, which has proven to be invaluable for many of our customers,” said Roslan.