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.
After dabbling for years in the IT industry, Paul Tan initially began this site as a general blog covering various topics of personal interest. With an increasing number of readers paying rapt attention to the motoring stories, one thing led to another and the rest, as they say, is history. An avid electronic gadget aficionado as well as big-time coffee lover, he's also the executive producer of the Driven motoring TV programme.
Should be some good business opportunity for Proton. I wonder why Proton rather keep thousands of unsold stock in the field in Shah Alam. They can somehow offer some real good package to the Johorean flood victims.
Lelong-lelong, beli 1 hadiah 2!
myvi sold well because
for average people.,
-roomy
-low consumption,
for techno people
-vvti ,efficient, good torque spread,
-fast
-toyota by right,
i think the johor government should subsidize the excise duty, import tax, sales tax & road tax for all new registered cars in Johor, restricted specifically for the flood victims only.
I look at it with the glass half empty in this scenario. Johoreans may prioritize their needs and a car right now may not be the first of many priorities if they have lost everything in the floods. Most of those that suffered the losses were from the low to middle income group.
those flooded cars are all besi buruk is it? Can make an article/post on what happens when the car is flooded over and its consequences Paul?
One thing for sure, it is gonna be tough to sell any 2nd hand car with a JXX plate. The general public will have a perception that Johor cars are heavily damaged by floods and its hard to know its history. So I guess, this will result price drop by dealers in order to sell Johor registered vehicles as a desperate measure.
Yes i think definately the used car prcies will drop, as it is already cars from other states don't command as good used car prices as cars from Wilaayah or Selangor, it seems a lot of people from other states come all the way down to KL just to get a KL plate because the used car price is better when selling esp. to 2nd hand car dealers.
johor 2nd cars will definately be priced cheaper than the other states.
mystvearn : a flooded car will naturally be wet in the interior and the seats, floor mats, cd player will be soaked. even though if can be cleaned and dried, the engine on the other hand is a tricky one.
flooded cars MUST NOT be started after the flood. its best to tow it to the foreman to change ALMOST ALL of the oils ranging from engine oil, brake fluid, ATF fluid, front/rear axle gear oil, etc. even for say that after that, the car behaves perfectly well, there is no guarantee that they are no faults/short circuits with the wiring.
many are not aware of the hazards of starting the engine without proper servicing after a flood. one example is warping of the pistons as water seepage into the engine CANNOT be compressed during combustion.
My friends car was in a flood near the Weld Tower in an open air carpark. All the electronics was soaked and muddied, and they had to open EVERYTHING, floor carpet, etc. So much damage. It took over a month to put everything together and lots of plastic clips on the inner trim, etc. cracked so more squeaks and rattles when put together again, lots of glitches on electronics, etc. It's a mess! And if u start with water in the cylinders you can bend connecting rods!!
So poor Johor car now…!
2nd hand sell cheap cheap, people also takut banyak!
skrg punya keta byk electronic… can replace all meh??… i don't think so.. won't work 100%…. but kancil shud be ok…. but sure ppl will stay away from j's plate 2nd hand cars….
Which state has never been flooded? To generalize this issue of flooded car is the same thing as the old saying that Penang cars are crap coz of the sea breeze which corrodes the car. No matter if the owner is in Kulim and never dared to drive the one way streets of the Island.
Oh…they still say that don't they?
i feel sorry for those cars that have been soaked by flood…
i feel sad for those J plate car's that had never soaked in flood before but price still dropping…
IMHO, mechanical(carburated) car are less sensative to water as compared to electronics(EFI and sensors) cars… but both still its depend how many days it had been soaked in water…
My colleagues spend RM11k for repair bill of his Vios after the flood. Pity for him. His CRV just let go..too much cost to repair.
forgot already about last year flood at TTDI Jaya, Shah Alam? many submerged car there too… i think the most expensive parts in car to replace after hev flooded is the electronic box is it?? i've heard that alone cost u RM4k for waja… my friend nabira cost him RM16k to repair after flooded at TTDI… tuff luck…
can confirmed that now insurance company refuse to cover flood for new insurance cover.
i know one guys when to purchase new policy and opted to cover for flood but the insurance company just refuse …
must be afraid after Johor flood and maybe alredi a lot of claims. Rugi lah business.
Another disaster that will be faced by Johorian.. Poor them.
It's time to take the money from the 'e' level of money's tank of the victims.
Think twice before a decision is made.
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intermilan said,
January 29, 2007 @ 7:54 pm
can confirmed that now insurance company refuse to cover flood for new insurance cover.
i know one guys when to purchase new policy and opted to cover for flood but the insurance company just refuse …
must be afraid after Johor flood and maybe alredi a lot of claims. Rugi lah business.
dat how they get profit lar…
imagine hv2 for tis, sure gulung tikar…
same goes to all type of insurance…
veli seldom they explain about fine prints (veli small font statement, something like disclaimer).
hm, wot biznis u can do in flood prone area??
1. pet rescue
2. cleaning services
3. waste disposal
4. life raft/sampan/pelampung keselamatan
5.water resistant blanket/ container/bags
6.car savage n towing
7.engine repair
8.mobile klinik
9.mobile mini market
10.flood alarm
ehehehehehe
Just dun remove the car reg number and sell it to other states..
The car industries is going downtrend worldwide thus Malaysia is going to be affected regardless its new or used vehicles.
Our Neighbor, Thailand is experiencing a 20% dip in car sales in Q4 of 2006 and forecast remains in red. Probably, the launching of new cars in the market can hype up the market but unlikely.
Promotions in the current market are mainly for the new car range that are brought into the stagnant market segment. For instance, Wish. The car is long available in the market and brought in by UMW. Yaris to compete with Jazz when this market segment was long secured by Honda.
In conclusion, POOR car sales for 2007 continues.