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ECONOMIC ANALYSIS : ASSIGNMENT 1
Scenario 1
PROTON Holdings Berhad is the Malaysia’s first automobile manufacturer which was established in 1983. To date, PROTON has produced more than 10 models in various car segments since its establishment. Most successful model produced by PROTON was Proton Saga dan Proton Wira which is classified in C-Segment market. PROTON had ventured B-Segment market when they produced Proton Tiara in mid of 1990s which is later replace by Proton Savvy in mid of 2000s. These two previous model is not well received by the market in B-Segment since the launching of PERODUA’s cars such as Perodua Kancil in mid of 1990s and Perodua MyVi in mid of 2000’s which has grabbed more interest of the middle income citizen.
The latest model that has been launched by PROTON in September 2014 simply named Proton Iriz is the replacement model for Proton Savvy which is targeted to be place in B-Segment market with a very affordable price. This model is directly compete with Perodua MyVi which has a track record as the best-selling car in Malaysia for eight consecutive year, between 2006 and 2013 respectively.
Prior to its launch, Proton Iriz has been given 5-star in Adult Occupant Protection by ASEAN New Car Assesment Programme (NCAP) which reflects that this model is very safe in a very minimal of cost.
Proton Iriz surely has a price advantage over all B-Segment cars such Suzuki Swift, KIA Picanto but Perodua MyVi still has the better price in the market. Perodua MyVi still priced cheaper than Proton Iriz in the same type of model for example the price of Proton Iriz 1.3 Standard Manual is RM 502 more than Perodua MyVi 1.3XT Manual. While the price of Proton Iriz 1.6 Premium CVT is RM 1,200 more than Perodua MyVi Extreme 1.5. With the price range of RM42K to RM 62K, the Proton Iriz is surely a hit among the middle income when the monthly instalment could be less than RM600.
Situation A :
Malaysian government