New Exora set to boost Proton sales

PETALING JAYA: The launch of the Proton Exora will boost national carmaker Proton Holdings Bhd’s sales, enhance competition in the multi-purpose vehicle (MPV) segment and lift the total industry volume (TIV), analysts said. The Exora, launched on Wednesday, is Malaysia’s first locally produced MPV.

OSK Research auto analyst Ahmad Maghfur Usman has estimated that the Exora could account for 22% to 25% of Proton’s revenue if the company could sell 25,000 units by year-end.

Another analyst from a local research house agrees, saying the Exora could contribute 15% to 25% of Proton’s sales by year-end.
Nancy Boyd with her brand new Proton Exora. Boyd was one of the 10 earliest Exora customers who received the keys to their car on Wednesday

As of yesterday, Proton had received some 3,500 orders for the Exora since Feb 21. Maghfur reckons more than a few potential buyers will flock away from the current popular MPV models given the Exora’s cheaper price and “very spacious interior.”

“Likely models to be affected would be the Toyota Innova and Nissan Grand Livina, given their higher prices relative to the Exora,” he said.

According to the Malaysian Automotive Association, as of February 2009, the local MPV segment had been dominated by UMW Toyota Motor Sdn Bhd’s Avanza and Edaran Tan Chong Motor Sdn Bhd’s Nissan Grand Livina.

The Avanza, with its 1.3 and 1.5-litre models, collectively comprise 34% of the local MPV market while the Grand Livina has 31.6% share. The Exora is about to give the Avanza, Innova and Grand Livina a run for their money, analysts said.

“Challenges faced by the Exora would be meeting the expectations of new and more affluent customers in terms of quality, performance and reliability,” said Kavan Mukhtyar, Frost & Sullivan partner and head of automotive and transportation practice for Asia Pacific.

“If the Exora can meet these demands, then it is likely to steal market share from the medium-to-large car segment and current MPV models.

“We believe that customers will go for newer-looking, contemporary and stylish models since the existing MPV models have been in the market for a few years,” he added.

An industry observer, who claimed to have tested the Exora, said he was impressed with the MPV. “It’s really not bad. I think it will give the other players a run for their money,” he said.

Affin Investment Bank analyst Chong Lee Len said the selling point of the Exora was its price.

“The Exora is not subject to import duties, hence the ability to be priced lower than its competitors. Parts and components are also 90% local,” she said.

Mukhtyar said: “The Exora will definitely help boost TIV for 2009 but it will not be very significant due to the relatively small MPV segment, which accounted for about 10% (of TIV) in 2008.”

“There will be some replacement buyers from the MPV and mid-segment car customers and it will have some positive impact on MPV sales,” he told StarBiz.