by TMR / pic by TMR FILE
HONDA Malaysia’s car sales declined 52% year-on-year from May to July 2021 due to prolonged business closure.
In a statement today the Japanese carmaker said they sold only about 5,700 units in this period compared to 12,000 units sold in the same period last year when the country was under Conditional Movement Control Order (CMCO) and Recovery Movement Control Order (RMCO).
“The prolonged business closure has also impacted Honda Malaysia’s new model production due to no testing conducted in the manufacturing facility. The company’s supply chain and exportation of parts are also affected,” said Honda Malaysia Managing Director and CEO Madoka Chujo.
She added the automotive industry supports a wide network of local components and parts suppliers that comprises a few tiers.
“These suppliers might not be able to sustain their operations and this will subsequently affect the overall supply chain.
“The current extended lockdown and no visibility on business resumption time frame
have impacted planning and overall investment of the automotive marques,” said Chujo.
She said the prolonged closure also affected Honda’s 101 authorised dealers who
face financial difficulties and the uncertainty of employment for sales and service advisors as well as other staff at the dealers.
The sales advisors whose income largely depend on commission earned, have been severely impacted.
“Honda Malaysia understands the hardship that the dealers and Honda associates are going through, and hence, the Company is trying to do its best to assist them
during the difficult times. One of the efforts is by registering Honda associates under the Public-Private Partnership Industrial COVID-19 Immunisation Programme (PIKAS) to expedite the country’s rate of vaccination,” she said.
Honda targets to achieve 100% of first dose vaccination for all its associates by mid-August 2021.
Chujo said Honda Malaysia hopes for early resumption of the automotive sector under strict SOPs and guidelines set by the Government.
“There will be no long-term impact such as retrenchment of employees and can help to mitigate potential business closure among the supply chain,” she added.