Frost & Sullivan expects vehicles sales in Malaysia to contract in 2016, with the market research firm predicting a total of 648,000 units to be sold for the year, representing a 1.44% decline year-on-year. Additionally, barring the Malaysian Automotive Association’s sales data, it predicts vehicle sales in 2015 to end at 657,500 units, a 1.3% drop from the numbers obtained in 2014 (666,465).
Vivek Vaidya, vice president of mobility at Frost & Sullivan attributed the projected decline in total industry volume (TIV) in 2016 to increasing economic pressures, the weakening ringgit, price hikes and tightening of credit approvals.
“OEMs are compelled to increase the prices due to rising costs. If the crude oil price continues on its downward spiral, the ringgit will also continue to weaken, putting immense pressure on OEMs as well as component suppliers,” he added.
However, new models that are scheduled to be launched this year are expected to help boost vehicle sales in the country. Frost & Sullivan also cited the continuation of various incentives under the National Automotive Policy (NAP) based on EEVs and local assembly will assist manufacturers in increasing their competitiveness and in maintaining their prices.
As for Frost & Sullivan’s 2015 estimates, Vaidya cited the implementation of the Goods and Services Tax (GST) and the depreciating ringgit behind the dip in sales. He said, “despite several OEMs reducing the prices of cars after the implementation of GST, the economic downturn, weakening ringgit, and increase in cost of living and cost-of-ownership discouraged buyers from making big purchases.”
Diving into the TIV for 2015, passenger vehicles accounted for approximately 583,000 units, a 0.9% decline from 2014. Perodua continues to lead the market with a 36.2% share of the passenger vehicle segment. Honda meanwhile, maintained its top position in the non-national car segment with a market share of 15.9%.
Vaidya commented, “Honda’s market share growth was backed by strong sales of the Jazz, City and the newly launched HR-V. Despite tough market conditions, the passenger vehicle segment also saw several model/facelift introductions, which includes the Myvi, HR-V, Mercedes C-Class, and Mazda 3.”
On the mention of Mercedes-Benz, the German marque had a fruitful 2015 in the premium cars category, with a double-digit increase in market share from 32% in 2014 to 48% in 2015. The Mercedes-Benz C-Class is just one of the vehicles that largely contributed to this boost in sales.
Moving on to the commercial vehicles market, Frost & Sullivan reports a 4.6% retraction to 74,500 units in 2015. While other categories saw a decline, pick-up trucks experienced a marginal growth of 1%. Pick-ups accounted for approximately 73% of the commercial vehicle market, with the Toyota Hilux, Ford Ranger and Isuzu D-Max leading the sales charts.
Toyota continued to lead the commercial vehicle market with a 36.8% market share, even with competition from brands like Isuzu, Mitsubishi, Nissan and Ford, all of which introduced all-new or facelifted version of their respective pick-up trucks.
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So the OEMs are from?? Who’s in-charge to take the supplements from?? All AP cronies helping themselves of country economic??
3 car must buy in malaysia
Poor people buy axia,
normal ppl buy city,
Rich ppl buy merz.
Poor people buy Axia, Middle class people buy City, Rich people buy C-class.
Poor pple keep buying liability and owing bank 4ever, Rich pple buy asset and keep their saving in rainy days..
John Ah Beng the great Proton macai get ready your defense mechanism in 3, 2, 1…
john= most hard working proton staff on internet
Sam Looo gotta work 2,3,4 jobs this year
I am buying my 5th Lexus soon, you can keep dreaming you kimchi drivers
No wonder, now i knew Lexus sales volume only SA buy.
Oh no. Proton launching 4 new models this year and Malaysia is its biggest market yet.