This article first appeared in The Edge Financial Daily on August 3, 2018

KUALA LUMPUR: Proton Holdings Bhd announced yesterday its car sales grew 31% month-on-month (m-o-m) to 8,102 units in July, saying it was the strongest sales number it recorded in the last 30 months.

The better sales achievement was boosted by improving local demand for its Saga and Persona models, and the resumption of its exports to popular Middle Eastern countries like Jordan, Iraq and Iran.

“While Malaysian sales were driven by customers looking to take advantage of the zero-rating of the goods and services tax, and before the implementation of the sales and services tax (SST) in September, the resumption of export activities by the company was what delivered a boost to the overall numbers,” Proton said in a statement yesterday.

According to data from the Malaysian Automotive Association, Proton car sales in July 2018 rose 12.14% year-on-year from 7,225 units in July 2017, and were up 31.25% m-o-m from 6,173 units in June 2018.

Due to the improving sales, Proton said its market share grew for a third consecutive month to 11.7% in July, from 9.6% in June.

Malaysians are opening their eyes to the attractive buying proposition offered by the current range of Proton cars, said Proton Edar Sdn Bhd chief executive officer Abdul Rashid Musa.

“We are therefore hopeful of carrying over this momentum even after the SST has been introduced as we gear up for the launch of our first SUV (sport utility vehicle) later in the year,” said Abdul Rashid. Proton Edar is the marketing and distribution arm of Proton cars.

Proton said its Saga model continued to lead its passenger car sales, breaking through the 3,000 unit barrier for the first time this year.

“The continued popularity of the Saga is attributed to its class leading affordability, spaciousness and handling as well as the ‘Best Saga deal in 10 years’ promotion where a brand new Saga could be bought for less than RM30,000 in June and July this year,” it added.

As for the Persona, Proton said it had achieved a new high point for the year, with over 2,221 units sold, and breaching the 2,000 threshold for the first time since May 2017.

On exports, Proton said it had started selling its cars abroad and shipped 517 cars in July to Middle Eastern countries like Jordan, Iraq and Iran. “With more shipments due before the end of the year, the company is confident of achieving its export sales target for 2018, which will act as a springboard to selling even more cars internationally over the coming years,”