With the recent floods in Johor, you can safely say that many people are picking up the pieces and putting their lives back on track. Buying a new car might be the last thing on the minds of Johoreans who probably need to refurbish their homes, buy new clothes, furniture and other necessities.
More after the jump…
One question that remains, however is what’s going to happen in the motoring world? One thing for sure, is that quite a few motor vehicles could have been submerged underwater. Proton even came out with an offer to help owners of flooded cars & Honda followed suite, offering discounts on spare parts for Johor customers. This also begs the question, will used car prices for J-plate cars drop relatively more than cars from other states?
On the sales front, the Johor is the 2nd largest automobile purchasing state, making up about 12% of the total malaysian car sales market, with about 4000 vehicles sold there per month, according to a local sales manager. KL & Selangor combined, is the biggest contributer with about 43%, followed by Johor (12%), Penang (9%), Sarawak (7%), Perak (6%), Sabah (5%). Other states contribute less than 4% respectively.
The top three selling makes in Johor are Perodua, Proton and Toyota who command 33%, 29% and 19% of the market share respectively. The top selling models in that state alone are the Perodua Myvi 1.3L (Over 800 units per month), Toyota Avanza and the Proton Wira 1.5 (Just about 300 units per month each). How will the car companies cope with the loss of customers? Sales & marketing managers across the country have been cracking their heads to come up with innovative solutions to counter the sudden change of circumstances in the second largest automobile purchasing state in Malaysia.
Compared to the cost of repairing a flooded vehicle, if a Johorean could drive a car away with zero downpayment, and low monthly payment, car sales could actually be brisk, providing its a model you don’t need to trade in a used car to buy (flooded used cars may not be worth much anyway). The glass could be half empty, or half full for car sales in Johor, depending on how you look at it. Kapchai makers might be stepping up their efforts there already.