Thursday 28 Mar 2024
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RAWANG (Nov 16): Perusahaan Otomobil Kedua Sdn Bhd — which sold 146,951 vehicles in the first 10 months of 2021 versus 171,861 units a year ago — has said it is unlikely to meet its sales targets for 2021 due to a chip shortage.

The compact car manufacturer warned that uncertainties over the chip supply shortage will persist until next year.

"Looking at current conditions, it is very challenging (to achieve the sales target) due to chip shortage and stock levels… So, I cannot commit to any number now.

"In fact, if we can achieve (vehicle sales) beyond 200,000 (units) or 205,000 it (will be) good for us," Perodua president and chief executive officer (CEO) Datuk Zainal Abidin Ahmad told the media.

Perodua in September already revised its sales targets for 2021 by 26,000 units to 214,000 from its initial projection of 240,000 units. In comparison, Perodua sold 220,163 units of cars in 2020.

Zainal has expressed concerns over the chip supply shortage as he foresees the chip supply for the company to still be unstable next year.

He said there are disruptions in terms of production as the group has faced a lot of issues related to the chip supply shortage since the early part of this year.

"So, we are in constant communication and discussions with our suppliers and they are committed to supplying our requirements until the end of this year.

"But, in the first quarter of next year, we are uncertain as we have not gotten any commitment from them (chip suppliers)," Zainal said.

According to him, the chip suppliers do not commit more than three months of supply given the global shortages. The supply for the first quarter of 2022 will only be confirmed at the end of December.

He added that the shortage of chips, coupled with the production disruptions as a result of the compliance with the lockdown restrictions, has lengthened the waiting time for new cars up to six months.

Zainal noted that Bezza and Axia are the two models that have the longest waiting time of six months. It is about three months for other models.

"We have planned to buffer our stock level to ensure the waiting period can be reduced. But, it is very difficult for us because of the 11 weeks' production stoppage due to Movement Control Orders. And looking at the demand/bookings we have, it is impossible for us to buffer the stock level.

"We will never give up and will try to buffer our stock in the second half of next year," he added.

Edited ByKathy Fong
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