This article first appeared in The Edge Financial Daily on April 9, 2020

KUALA LUMPUR: Proton Holdings Bhd’s car sales volume improved 20.4% to 21,757 units in the first quarter of 2020 (1Q20) from a year earlier. The sales growth was mainly driven by higher sales for its Iriz, Persona, Saga and Exora models.

“A total of 21,757 units were sold in the first three months of the year, which resulted in the company’s market share growing from 17.4% to 20.1% of total industry volume,” said Proton in a statement yesterday.

In comparison with 1Q19, Proton’s volume seller, Saga, showed an increase of 36% with a total of 8,824 units sold, while sales for Iriz grew by 602% with 2,009 units.

At the same time, Persona recorded a 243% gain with 5,677 units and Exora grew by 17% to 1,091 units. As for Proton X70, despite seeing a decline of 48% with a total of 4,145 units sold, it still achieved the distinction of being the bestselling sport utility vehicle in the country in 1Q20.

The national car manufacturer said that on a monthly basis, sales volume in March, however, dropped from a year earlier and against the preceding month due to the movement control order (MCO) to curb the Covid-19 pandemic.

Proton sold a total of 3,277 units in March — down 41% year-on-year and 67% month-on-month. The carmaker attributed the decline to the MCO, which has seen all sales outlets shut since March 18 and is expected to affect car sales drastically this year.

Proton chief executive officer Dr Li Chunrong said in the statement that while the company’s performance in January and February 2020 was very strong and far ahead of 2019, momentum was slowed due to the MCO.

“However, the safety of Malaysia and its people is far more important than any commercial considerations, so Proton stands by the government on the measures taken,” Li said.

Looking ahead, the company said it sees 2020 as a very challenging year as the fallout from Covid-19 after the MCO ends puts businesses in uncharted territory.

For now, Proton has continued to operate with its staff working from home while a skeletal workforce, approved by the ministry of international trade and industry, maintains critical equipment at its facilities.

“Challenges are something that we embrace. In a sense, because Proton has fought to return to a much stronger position, my team and I are prepared to weather this storm. Considering our improvement over the last two years, I am confident that Proton will be able to overcome this crisis as we stay focused on our long-term goals,” said Li.