PETALING JAYA: Frost & Sullivan foresees Malaysian vehicle sales this year reaching approximately 608,790 units at a growth rate of 1%, as the economy is expected to continue recording positive growth in 2020, driving consumer confidence throughout the year.
Associate partner and senior vice-president of mobility Vivek Vaidya said the key factors likely to aid growth in the automotive market in 2020 includes strong and growing consumer confidence and new model launches.
“New product launches have assumed more importance than ever for growth of the total industry volume (TIV). New models that offer smart connectivity features such as remote vehicle access through smartphone apps will get higher customer interest and will induce purchase,” he said in a statement.
However, he cautioned that the outlook of the Malaysian automotive industry could be affected by global uncertainties such as the US-Iran conflict, which will impact long-term investment decisions.
At the same time, the repeated postponement of the National Automotive Policy (NAP) has also created uncertainty, and both factors will have to be overcome by positive consumer sentiments to maintain favourable growth.
“The industry is expecting the National Automotive Policy to provide clear direction to transform itself in the new decade.
“There is an urgent need for the Malaysian automotive industry to modernise itself and offer exciting products and services in line with global trends. Industry players are relying on NAP 2020 to guide and seamlessly transform themselves,” he said.
Looking back over 2019, vehicle demand in Malaysia registered growth of 1% in 2019 due to strong performance of new model launches in the SUV segments – notably the Proton X70.
Overall, sales were cautious throughout the year but saw an upsurge in vehicle sales due to year-end promotions.
Vivek noted passenger vehicle sales reached approximately 549,232 units in 2019, backed by strong performance in the passenger vehicles segment and resurgence of the SUV segment.
As for commercial vehicle sales, sales dipped in 2019 with approximately 54,442 units sold and the overall market concentration of the top five players decreased in 2019.
