This is a challenging time for the Malaysian automotive industry, as the pandemic and the ensuing restrictions have left its mark on the country’s new car sales.Recently, the Malaysian Automobile Association (MAA) revealed that the industry lost more than 14 billion ringgit exist June with July 2022, Because during that time, car factories and dealers were still closed.
According to a report star, The association uses data obtained from the Malaysian Bureau of Statistics to estimate that the average monthly sales of new and used cars (except motorcycles) is 12 billion ringgit.
Assuming that new cars account for 60% of sales, the association estimates that the total loss of new car sales in the two months mentioned above is 14.4 billion ringgit. Remember, this does not include lost revenue due to lack of parts exports and sales.
MAA Chairman Datuk Ahmad Aishah told star Since the implementation of the first movement control order in March last year, auto companies have been cutting costs. “Car franchisees will not close their doors, but car dealers with high operating costs and cash flow problems may Turn off,” she says.
However, with Announcing economic relaxation Just a few days ago, the association and its members were confident that the industry will be able to recover in the rest of 2022.Last month, the association revised its industry total estimate to 500,000 units this year, Lower than the initial forecast 570,000 units announced in January – The latest year-to-date total as of the end of July is 256,215 units.
“Now that the industry can operate again, we will still stick to the TIV forecast of 500,000 vehicles. Sales and service tax (SST) exemption-100% for new locally assembled cars and 50% for imported cars-will help until the end of the year because of orders Very good,” Aisha said.
Many domestic auto brands also expressed their views on the matter, including Honda, a spokesperson said that the company’s vehicle sales from May to July fell 52% year-on-year. Pointing out that the restrictions not only weakened car production but also the larger supply chain, the company followed standard operating procedures (SOP) when restarting the Malacca plant, aiming to complete orders quickly.
Naza Group Automotive Chief Executive Officer Datuk Nick Hamdannick Hassan stated that its automotive business fell by 70% in July. He added that the company looks for other ways to serve customers and believes that market demand is good.
“Nowadays, buying and selling can be done online. Even during the lock-in period, our employees can still interact with customers remotely and virtually. However, this is limited to certain services, because customers still prefer to visit showrooms for a tactile and sensory experience ,” Nik Hamdam said.
“When the economy improves, hoping to be driven by high vaccination rates, we can look forward to the release of new products. We absolutely want to take advantage of the tax holiday until the end of the year,” he added.
Mazda dealer Bermaz Auto said that the supply of CKD parts is restricted and the global chip shortage has made this problem worse. A spokesperson said: “The sales tax holiday will help attract customers. I hope we can meet the delivery schedule before the end of the year,” adding that during the lock-in period, delivery will be delayed in the short term, and the assembly plant and its The supporting supplier cannot operate.
The shortage of chips is also a problem recognized by Proton and Mercedes-Benz Malaysia, which may cause delays in vehicle delivery. However, both companies are working hard to ensure that customers receive their cars and have launched new models this year to strengthen their lineup.
At the same time, Ravindran Kurusamy, President of UMW Toyota Motor, said that the number of car bookings of the company is encouraging and will resume operations quickly to minimize the impact on business and customers. “As of now, there is no foreseeable impact on our business,” pointed out when talking about the global chip shortage.