Pron Vs Perodua Essay

1258 Words6 Pages
Challenges
Too much protection from the government
According to (Rabiul Islam, Ahmad Bashawir Abdul Ghani, Bobby Kusuma and Eric Teh Yew Hong, 2016), to protect the local automobile industry, the Malaysian government has maintained a number of protective measures. It is important to protect the national car since it is still an infant industry. These measures aim to ensure that manufacturers and suppliers are ready to prepare themselves for domestic competition and eventually compete in the international markets. These protective measures include tariff and non-tariff barriers, the local content policies and licensing systems. There are only two national car manufacturers, Proton and Perodua in Malaysia. If to base on the journal above, it is important to protect our national automobile as it is still an infant industry, but Malaysia’s Proton has been in Malaysia industry since 1983 while Perodua has been in this industry since 1994 after launched their first car which is Kancil. Hence, our automobile industry cannot be considered as an infant industry anymore.
According to (Leow and Husin, 2015), in Malaysia, to ensure the competitive advantage of local car manufacturers, AP or approved permits were introduced over 20 years ago to ensure that imported cars were priced significantly expensive than local car manufacturers like Proton and
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This is because, in comparison of Proton and Perodua, Proton is the one who facing the biggest problem. According to New Straits Times on 30 March 2017, Proton have received soft loans from the government around RM1.5 billion, yet they cannot increase their production nor sales. On 2016, Proton sales volume was at 72,290 units, while Perodua recording sales volume of 207,110 units. Also in 2016, while Perodua's market share was at 40 per cent, Proton recorded only 14 per cent. Even its revenue has consistently dropped from RM7.7 billion in 2013 to 4.8 billion in financial year

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