Cover StoryCommenting on the country’sautomotive industry, Dato’ SyedHafiz said that the total industryvolume reached an all time highof 551,000 units in 2005 and lastefficiency. With its target customersegment of families with youngchildren and young executives,we can imagine that sales of theMPV will closely mirror that ofwish to replace their existing carwith a new one (20%).year some 548,000 cars were sold, aits predecessors. “Every year, weslight decline considering the globalcome up with one new, major ideafinancial crisis. As for Perodua’sto sustain our business until thecar sales, it grew from 139,680 unitsnext year,” says Dato’ Syed Hafizin 2005, to 155,419 units in 2006regarding the upcoming launchand increased to 162,152 units inof the MPV and its relation to2007 and reached a record high ofPerodua’s sales and marketing167,393 units in 2008.strategies.The stiff competition in the industrymeans that consistent and effectivemotivation is needed to drivesuccess and performance of thecompany. “As a manufacturer andOn another positive note, thePerodua’s prospects for the nearseller of compact cars, we push for amotorization rate in Malaysia isfuture appear bright but as withcompact culture,” he explains. Theone of the highest in the region.any other industry, the automotiveexistence of solid affiliations suchMotorization rate refers to theindustry is a competitive business.as the 15-year partnership betweenpercentage of people who ownHowever, Dato’ Syed HafizPerodua and Daihatsu, one of thecars. For instance, in Malaysia, theis not too worried about anytop car manufacturers in Japan alsorate is currently 33%, meaning thatmajor competition from otherhelps the organization to run morefor every 100 people, 33 cars aremanufacturers in Malaysia orsmoothly. Dato’ Syed Hafiz alsosold. This figure is very healthyoverseas. “To me, there are twoplaces great emphasis on effectivecompared to countries such astypes of competition: direct andcommunication among staff toThailand, Indonesia and Philippinesindirect. Indirectly, everything isensure that everybody understandswhere the motorization rate barelyconsidered competitive for yourthe bigger picture that the companyreaches 5% to 10%. In addition,business including factors such asis striving for. On a more individualMalaysia is greatly aided by lowfuel price, economic factors andnote, he encourages a positiveinterest rates and non-performingage group. Directly, of course weattitude among staff: “Be excitedloans (NPL).have competitors but buyers ofabout going to work when youcompact cars are a different brandwake up in the morning. You mustThis November, people can expectof customers.” According to Dato’choose your mood instead of lettingeven more product variety fromSyed Hafiz, three categories ofothers do it for you.”Perodua as the company will bethese buyers exist: first-time buyerslaunching its newest product, thewho usually prefer to start withWith many countries still recoveringMPV. As with past cars, the MPVsmall cars (40% of Perodua buyers),from the blow of the economicaims to defy the convention of large,additional buyers who wish to addcrisis, how does this situation affectbulky family cars by emphasizinganother vehicle to their existing carMalaysia’s car exports? Dato’ Syedon practicality in size and fuel(40%) and replacement buyers whoHafiz views this as an opportunity10
up every morning feeling spirited todo their jobs.”On a personal note, he displays amore philosophical and spiritualside, valuing peace of mindover material wealth. “We haveinsufficient resources, yet we useit to make bombs and fight withone another; it is a waste.” He alsoexpresses an interest to visit wartorncountries such as Palestine tovisit refugee camps and make somekind of contribution when he hasthe time. “It is something I wouldlike to do soon,” he confesses,“because I believe in contributingto society while we are still younginstead of waiting until old agewhen we no longer have the energyto do so.”Cover Storyin the sense that Perodua has timeto advance to the level of its foreigncompetitors. “Many companies areclosing down their plants and layingoff staff. It will probably take fewyears for them to bounce back. Thiswindow of time allows Peroduathe chance to slowly go up to speedand match the level of internationalcompanies in terms of quality andstrength.”“We are driving a culture of different religions and interests wherepassion is the common denominator," says Dato' Syed Hafiz.Part of Perodua’s efforts to meetthis goal includes a December 2009target to meet the global qualitystandard of 0.2 DPU (defects perunit). In automotive terms, evena hairline scratch along the metalsurface of a car is considered adefect, so production quality plays asignificant role in ensuring minimaldefects. “Right now, we are at 0.3plus,” he reveals. “We are hopingthat by December, we can improveour quality to meet the standard.”Dato’ Syed Hafiz has been a witnessto many of Perodua’s successesas well as challenges. However,he admits that one of his biggestchallenges lies in continuouslychurning out new ways to maintainpassion not just in his staff but alsoin customers to keep purchasingtheir cars. “We are facing with aculture of different religions andinterests where passion is thecommon denominator. My jobis figuring out how to instil thatpassion in people so that they wakeRemarking on TNB’s service whichhas been valuable considering thelarge-scale size of the automotiveindustry and its dependence onelectricity to produce cars, he noteswhat others have also observed onits developments in recent years:“The service has improved a lot inthe past few years, and the staff hasbecome much more proactive. Oneof the major changes is that TNBhas stopped viewing the businessas a captive business and startedto operate as more of a serviceindustry. Where once it had a moreselective approach to customers,it has now become open to widerchoices.”With the MPV’s release comingup in November, more newproducts being planned and thesales of existing products arestill going strong, it is safe to saythat Perodua’s status as one ofMalaysia’s top car manufacturerswill last for quite some time.<strong>Tenaga</strong> Link 11