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Market share key to profitability

Perodua chairman Tan Sri Asmat Kamaludin (centre) said that a company will be able to export profitably if it reports solid business performance domestically.

Perodua chairman Tan Sri Asmat Kamaludin (centre) said that a company will be able to export profitably if it reports solid business performance domestically.

NATIONAL car manufacturers need to achieve more than 50 percent market share in the local automotive industry to ensure the survival of their vendors, said Perodua chairman Tan Sri Asmat Kamaludin.

“The higher the market share, the better. We expect our national car brands to achieve more than half of the total industry volume as we have a higher degree of localisation,” he said after the launch of the Perodua Global Manufacturing EEV plant recently.

“A bigger volume of national branded cars will create more opportunities for localisation by local vendors.”

Cars Bikes & Trucks understands that Perodua currently purchases RM5 billion worth of vehicles parts locally.

Asmat added that commanding a larger market share will prepare a manufacturer to expand its market outside its country of origin via export. He cited brands such as Hyundai and Kia which have successfully attained about “60 to 80 percent” share in their domestic markets.

“A bigger share will prepare us for successful export activities. Then again, we need to make sure that our own market is secure before we can export profitably,” he said.

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