Pittman Company Assignment Essay

641 Words Aug 3rd, 2011 3 Pages
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
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3. From the article, CIMB Research auto analyst Loke Wei Wern pointed out that the new Myvi could affect the Proton Saga Sales. The new Myvi and Proton Saga are the substitute goods. The price of the vehicle and the quantity demand for the substitutes good are positively related.
For example, when the price of Proton Saga is higher than the new Myvi, the customers will choose to buy the Myvi, the demand curve for the Perodua, Myvi will shift rightward from D0 to D1 as shown in the graph (c)

Conclusion
Perodua has been quite successful in its business ventures. The new Perodua model – Myvi will be well accepted and gain profits. The new Myvi could be a major driver of passenger vehicles sales. The model popular amongst the youth and is typically used as a second ot third car for most of the households. The demand and supply for Perodua Myvi will continuously increase if the foreign vehicles like Japanese vehicles continuously increasing their price.

Graph (a) : As shown in the graph below, the demand of new Myvi increases, the production of new Myvi increases.

Quantity
Price

D0
D1
0

Graph (b): As shown in graph (b), the supply curve of Japanese vehicle will shift leftward from S1 to S2 , resulting in higher Japanese vehicle’s price. That mean that, price increase and supply decrease.

Price/peppers
Price
S1
S0
0
D

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