Perodua Case Study

1566 Words Mar 28th, 2011 7 Pages
The PERusahaan Otomobil KeDUA Sendirian Berhad, is Malaysia's second largest automobile manufacturer after Proton. It was established in 1992 and launched their first car, the Perodua Kancil in August 1994.The shareholders of Perodua are UMW Corporation Sdn Bhd with 38% stake, Daihatsu Motor Co. Ltd. (20%), MBM Resources Bhd (20%), PNB Equity Resources Corporation Sdn Bhd (10%), Mitsui & Co. Ltd (7%) and Daihatsu (Malaysia) Sdn Bhd (5%).
The company started operations in 1994 and the ever so popular Perodua Kancil was introduced to the Malaysian market in August the same year. To date, the following vehicles have rolled out of the Perodua plant:
• The Perodua Rusa - March 1996
• The Perodua Kembara - August 1998
• The Perodua Kenari
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What needs to be done is to take these linkages to a higher level, which can be further helped with the consolidation of the auto vendors in the country.
This is where the Ministry of International Trade and Industry (MITI) can help and show the way by facilitating and consolidating local vendors. They have been consolidated from 500 to about 250 now with nearly 100 shared by Proton and Perodua. Pushing for higher quality and competitiveness will also help further develop competitive vendors for car firms not only for the country also the region. It must be remembered that the car vendors do not only service Proton and Perodua, but the entire automotive industry in the country.
Also, it is only fair that Perodua be given the chance to implement its five-year road map premised on improving quality, costs and efficiency to stay competitive as a regional motor vehicle player. It plans to reduce costs through efficiency, a move seen as crucial to keep the prices of its new cars low.
Otherwise, the company will be forced to raise car prices to achieve returns on investment since a sizeable sum is spent for every new model and maintaining brisk sales for Perodua cars. It is also to make Perodua competitive in the post-2015 scenario, and in this regard, vendors have to seize opportunities and see the big picture and not just

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