by IZZAT RATNA
New car production is expected to be at for the next four years due to soft consumer demand and challenging market conditions.
The Malaysian Automotive Association (MAA) said another big factor for the slow growth of demand for new cars is that many Malaysians already own cars.
MAA is forecasting total industry volume (TIV) for new cars to grow at 5% next year before slowly declining to 2.1% in 2021.
Its president Datuk Aishah Ahmad said Malaysia will not see increases as the industry takes steps to prevent overstocking.
“The Malaysian public own too many cars for a population less than 23 million,” she told reporters at a briefing in Petaling Jaya yesterday.
For 2017, however, Aishah said MAA is maintaining its forecast of 590,000 units based on sales performance so far this year.
She said consumer confidence is seen to be improving this year, which will boost car sales.
“The introduction of new models with latest designs and specifications at competitive prices may assist to sustain buying interest.
“The trend towards fuel efficient and small engine vehicles is also expected to continue as consumers become more conscious of maintenance costs,” she said.
Aishah said MAA is sticking to its sales forecast of 590,000 TIV for 2017 because almost half of that number, 284,461 units, had been achieved in the first six months.
The production TIV for the year to June decreased by 2.9% to reach a total of 255,318 units compared to 262,963 units in the same period last year.
The drop in the production volume was due to the cautious stance as well as adjustments made by MAA members to avoid an overstocked position given the soft market conditions.
Production of passenger vehicles in the first-half of 2017 (1H17) declined 1.9% to 236,464 units, compared to 241,009 units a year ago, except for MPV and 4×4/SUV sub-segments.
Production of commercial vehicles for the 1H17 declined 14.1% to 18,854 units against 21,954 units previously, except for trucks and prime movers.
On a monthly basis, the sales volume for March 2017 was the highest recorded during the period under review at 53,718 units, driven by the longer working month as well as the rush for deliveries by companies with financial years ended March 31, 2017.
On a quarterly basis, the TIV was much higher in the second-quarter of 2017 (2Q17) at 2% to reach 143,621 units compared to the 1Q17 with 140,840 units.
This can be attributed to improving consumer sentiment and aggressive promotions and sales campaigns undertaken by MAA members, particularly in May and June 2017.
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