PETALING JAYA: The Malaysian Automotive Association (MAA) has projected the total industry volume (TIV) for 2020 to increase marginally by 0.5% to 607,000 units from 604,287 units in 2019.
“We foresee 2020 will be another challenging year,“ MAA president Datuk Aishah Ahmad (pix) said when announcing the market review for 2019 and outlook for 2020 today.
MAA’s forecast takes into account factors such as the global economy, Malaysia’s economy, persistent weakness in the ringgit, moderation in consumers’ spending, tightening of lending guidelines including for hire purchase loans, introduction of new models at competitive prices, aggressive promotional campaigns by car companies and the unexpected changes in government automotive policies and taxes.
In 2019, TIV went up only 1% or 5,689 units compared with 2018, but this was the first time it surpassed the 600,000 units mark after three consecutive years of TIV hovering below 600,000 units.
The 2019 performance was attributed to a stable and employment market, upward trend in the fourth quarter, aggressive sales campaigns by car companies, introduction of new models at competitive prices as well as attractive offers and schemes for buyers.
Passenger vehicles increased 3.2% but commercial vehicles declined 17.4% or 11,391 units to 54,108 units, which Aishah attributed to the slowdown in the economy and many projects being put on hold.
MAA’s forecasts for the next four years include 2% growth in 2021, 2.1% in 2020, 2.2% in 2023 and 2.3% in 2024.
Meanwhile, Aishah said the National Automotive Policy (NAP) 2020 will be announced in the first quarter of 2020 by the prime minister.
“It’s more or less approved. I’m told that the Cabinet has endorsed it. Miti (International Trade & Industry Ministry) is waiting for the PM’s date and time to announce it. It could be February or March.”
She said there are not many changes from what is mentioned in the draft, where NAP 2020 will include policies on next generation vehicles, mobility as a service and energy efficient vehicles incentives.