Automotive industry on flat growth trajectory

The TIV was flat YtD with 549,445 vehicles sold compared to 550,410 units delivered in the 11 months last year

by RAHIMI YUNUS/ pic by MUHD AMIN NAHARUL

THE local automotive market is expected to be flat by year-end, while sales growth in November was negative against last month.

Sales volume in November was 2.4% lower or 1,286 units less than October, according to the Malaysian Automotive Association (MAA) data.

However, car sales for November this year rose 8.9% to 52,584 units compared to the same month in 2018.

The total industry volume (TIV) year-to-date (YTD) was flat with 549,445 vehicles sold compared to 550,410 units delivered in the 11 months last year.

“Sales volume for December 2019 is expected to maintain at November 2019 level,” MAA said in a statement yesterday.

The group added that vehicle sales this month would be supported by aggressive year-end promotional campaigns, especially by several players that have their financial year ending on Dec 31.

The 549,445 new vehicles registered as of November represents 91.6% of MAA’s forecast of 600,000 units this year.

Carmakers would need to deliver 50,555 vehicles in December to fulfil the forecast. It was reported that analysts have mixed views on whether the industry would meet the target.

Some think the 2019 TIV number could fall short due to current economic conditions and the absence of the tax-free period last year.

The TIV this year has been boosted by greater sales from Proton Holdings Bhd and Perusahaan Otomobil Kedua Sdn Bhd (Perodua).

Proton is on course to settle in the No 2 position based on volume and market share this year after a fouryear absence, edging out Honda Malaysia Sdn Bhd in an increasingly competitive market.

As of November, the former national carmaker sold 89,476 vehicles, up 50.1% year-on-year (YoY) for a market share of 16.2%.

Perodua is expected to retain its No 1 ranking with the last reported number of cars sold hitting over 201,000 units as of October.

Foreign car manufacturers’ sales volume in the first nine months of 2019 (9M19) dropped by 18% YoY as national makes gobbled up bigger market shares.

Non-national carmakers delivered about 43,200 fewer vehicles YoY to 194,300 units in 9M19, compared to 237,500 in the corresponding period in 2018, according to Affin Hwang Investment Bank Bhd’s estimates and data from the MAA.

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