The Ertiga is a B-segment MPV which, in terms of dimensions, competes with Perodua’s Alza mainly, as well as the Toyota Avanza and Toyota Sienta.
KUCHING: Proton Holdings Bhd (Proton) had just launched its its fourth and final model for the year, the Ertiga, and analysts believe that this marks the company’s effort to expand its market share after a period of subdued growth.
In a report, the research arm of MIDF Amanah Investment Bank Bhd (MIDF Research) pointed out Proton’s market share dropped to as low as 8.5 per cent this year but since the launch of the Persona and Saga in the past two months, market share had rebounded to the latest 16 per cent in October.
It noted that Proton’s market share had gone back to 2014 to 2015 levels of 15 to 17 per cent.
“More importantly, the Ertiga is an entirely new model segment and expands Proton’s reach compared to the Persona and Saga which are model replacements, which is why the Ertiga is an important part of Proton’s offensive this year and suggests possibility of further market share expansion in the coming months,” it opined.
Meanwhile, the research team noted that while target volumes from Proton are not forthcoming yet at this juncture, Suzuki Indomobil Sales in Indonesia had previously indicated that it would be exporting 1,500 units per month of the Ertiga’s completely knocked down (CKD) kits to Malaysia for Proton.
Annualised, this would account for 15 per cent of Proton’s average three-year annual total industry volume (TIV) of 118,880 units.
“We don’t think the numbers are too far fetched as the Alza generates monthly volumes of 3,500 to 4,500 while the Exora generates volumes of 1,700 to 2,200 units a month,” MIDF Research said.
The Ertiga is a B-segment MPV which, in terms of dimensions, competes with Perodua’s Alza mainly, as well as the Toyota Avanza and Toyota Sienta, it added.
The research team noted that the Ertiga complements Proton’s Exora which is positioned as a C-segment MPV priced at RM67,000 to RM83,000.
All in, MIDF Research maintained a ‘neutral’ view on Malaysia’s automotive sector.