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Pittman Company Assignment

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Submitted By chloelim
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Summary
This new reports about analysis of sales of new Perodua Myvi. The new Perodua Myvi will be launch on June 16, will boost passenger vehicles sales this year according to automotive analysts. The Perodua’s revised sales forecast this year was easily achievable due to the earlier than expected launch of the new Myvi. The sales increase about 11.9% which from 171750 units to 195000 units. New Perodua Myvi also upgraded its Malaysia automotive total industry volume (TIV) forecast for 2011. New Myvi could be a major driver of passenger vehicle sales. The demand for the new Myvi increase due to buyer holding back as they wait for the new model. On the other hand, the sales of old model decrease. Myvi was still Malaysia’s best selling passenger car. From the OKS research, Malaysia Automotive Association, Proton shows the higher sales and the percentage change in revision is 14%.

Analysis and the use of graph 1. According to the news report, OSK Research state that Perodua’s revised sales forecast of 195000 units was easy to hit the target due the high demand of New Myvi. The forecast sales are increasing 11.9% from 171750 units (previous) to 195000 units (revised). The consumer pent-up demand for the new Myvi. The increase in the demand for new Myvi can be explained using graph (a). the higher the demand for new Perodua Myvi, the higher the sales of Perodua Myvi. The demand curve shifts to right, from D0 to D1.

2. As mentioned in the report, OSK Research had earlier forecast a year-on-year drop in total industry volume (TIV) due to supply problems faced by Japanese vehicle after the earthquake and tsunami in March. The decrease in supply of Japanese vehicles due to disaster will rise the supply for new Myvi.

As shown in graph (b), the supply curve of Japanese vehicle will shift leftward from S1 to S2 , resulting in higher Japanese vehicle’s

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