For the first time, Proton will have a direct competition with another national car manufacturer. While other models before this compete indirectly because of their pricing, this time they will compete in the same class. Proton cannot use the cheap Korean cars and excessive APs argument anymore. This time, the second national car manufacturer, Perodua, is a real national car manufacturer as Proton does, although they are taking different approaches.
Perodua took a restructuring approach that sees its manufacturing division controlled by its Japanese partner while its sales and distribution remains Malaysian-controlled. Meanwhile, Proton ended its ties with Mitsubishi and designed its new generation of cars on its own with help from other technical partners such as Lotus and Renault. The result of Proton’s approach is Waja and Gen2 with TRM next, while Perodua is starting its new generation of cars with Myvi. With TRM entering the market, we will see a direct competition against 2 national car manufacturers. Perodua Myvi vs Proton TRM.
Myvi represents a new benchmark in terms of build quality of national cars. Perodua claims that they can achieve 0.2 defects per car, a figure that is much better than any previous Peroduas and current Protons can achieve. Positive comments can also be seen in the Internet, and with 18,000 bookings recorded, Myvi is going to be another success story for Perodua. Therefore, Myvi is already winning the battle even without TRM entering the market.
This is also due to the negative comments about this new Proton even before it is officially launched. Some comments are justified such as possible build quality problems just like Protons before it and possible high maintenance cost due to its Renault mechanicals. Announcing a launch date only to postpone it also did not help.
Proton should be blamed for prematurely announcing TRM’s launch last year. They should take their own time to ensure that any possible quality problems will be eliminated before it is launched. Therefore, by announcing its launch when it is really ready should be the right approach.
TRM’s build quality is difficult to judge since it is not yet launched. With Myvi as a direct competitor, build quality expectations will be very high. While TRM must show a better build quality than previous Protons, it must also match what Myvi has to offer and makes good of Proton’s claim in its TUV ad. Proton’s TUV ad made bold claims such as commitment to improve quality, making quality of its cars right the first time and other claims. If TRM fails to achieve such claims, imagine what comments will flow from the Internet.
Waja 1.8 owners have complained that maintenance costs of their cars are high due to its Renault mechanicals. Therefore, Proton should tackle this problem in TRM because it will be using Renault mechanicals. One approach is to reduce replacement parts costs by localizing as much as possible. Another is to offer free maintenance that also includes parts.
If TRM is able to offer build quality to match its competitors and also cheap maintenance costs, Proton’s battle is already half-won. The other criteria such as styling, packaging, comfort, performance etc are also important, but Proton should be able to do a good job in these criteria against its competitors even though it may not be the class best. Therefore, eliminating the negative perceptions of Proton in terms of build quality once and for all with this model is crucial to ensure its brisk sales as Myvi does. Ultimately, it is a sign that Proton is improving and will have a better future.
A comparison test between Myvi and TRM is an absolute must. It will show how far these companies have gone and how much they can learn from each other. It will also show how their approach paid off. In the end, it is about deciding which is the better car.
Saturday, June 04, 2005
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