UMW says its auto segment on track to achieve full-year sales targets

UMW says its auto segment on track to achieve full-year sales targets
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KUALA LUMPUR (Nov 4): The automotive segment of UMW Holdings Bhd is on track to meet its full-year sales targets following improved sales achieved by both UMW Toyota Motor (UMWT) and its 38%-associate company, Perusahaan Otomobil Kedua Sdn Bhd (Perodua), in October 2020.

In a statement today, UMW said the group’s automotive market share is estimated at 58% in October, a significant increase from the 51.4% registered in 2019.

It said the sales tax exemption announced by the government on June 5, effective from June 15 to Dec 31, has helped to lift sales in the second half of the year.

UMW said UMWT sold 6,468 units in October, an increase of 15.4% from the 5,605 units it sold in September.

It explained that the top sales contributors for the month were Toyota Vios, Yaris and Hilux.

“Having already sold 43,807 units for the first ten months of 2020, UMWT is on track to achieve its revised sales target of 53,000 units for the year,” it said.

On Nov 2, UMWT announced the launch of the newly-revised Toyota Yaris and opened its order books for registration. The Yaris was launched as a CKD model back in April 2019 and has been consistently No. 1 in the Non-National hatchback segment. 

“With further enhancement of its design and features, UMWT is confident that it will maintain its market leadership in this segment,” it said.

Meanwhile, Perodua once again broke its monthly sales record in October with total registration of 26,852 units, a 7.3% increase from the 25,035 units in September.

For the first ten months of 2020, Perodua sold 171,864 units, which is 81.8% of its target to sell 210,000 units for the year.

Perodua’s two plants have been running almost at their maximum capacity since August in order to meet the strong demand.

UMW president and group chief executive officer Datuk Ahmad Fuaad Kenali said the group has managed to stage a strong recovery in the second half of the year, thanks to the sales tax exemption implemented by the government to boost the local automotive industry following disruptions caused by Covid-19. 

“We are confident that the strong sales momentum would sustain until the end of the year, for us to achieve our sales targets for the year,” he added.

At 11.52am, UMW gained 1.33% or 3 sen to RM2.29, valuing it at RM2.68 billion.

Surin Murugiah