The Malaysian automotive sector continued to be a significant contributor to the economy last year, contributing 4.2% to the country’s gross domestic product (GDP). Overall growth continued, and although the total industry volume (TIV) for the year surpassed that of 2017, other areas showed greater growtth potential, according to the Malaysia Automotive, Robotics and IoT Institute (MARii).
At its 2018 overview presentation earlier today, MARii CEO Datuk Madani Sahari revealed relevant numbers for the sector in 2018 as well as the outlook for 2019. He said that parts and components exports hit a historic high of RM12.1 billion in 2018, significantly up from the RM4.7 billion recorded in 2014.
Although the TIV and total production volume (TPV) increased to 603,664 units and 572,471 units respectively last year, the ministry of international trade and industry (MITI) agency said that the industry should be looking outwards and reducing its primary dependence on the domestic market, saying that this was small in the overall scheme of things. The motorisation rate, it added, was already at 348.6 to 1,000 people in 2017.
This year, both TIV and TPV is expected to grow by less than one percent, the projection being 605,898 units (0.37% gain) for TIV and 575,603 units (0.55% gain) for TPV. The contribution from parts and components is expected to climb to RM13.03 billion (a 7.69% increase) this year.
He added that remanufactured parts and components, which climbed to RM523.1 million in 2018, was a largely unexplored market with tremendous business potential. This is projected to improve to RM700 million in 2019.
Other key highlights included CBU vehicle exports, which rebounded from its decline in 2017 and breached the RM2 billion mark for the first time (RM2.08 billion) last year. This is expected to grow to RM2.5 billion this year. The institute believes that exports, including that of remanufacturing, will provide the best avenue of growtth in 2019 and into the future.
Last year, a total of 64,839 jobs were created in manufacturing and after-sales, although the forecast for this year will see a slightly lower number (59,942). Elsewhere, Madani said that the penetration rate for energy efficient vehicles (EEV) was 62% last year, and this is expected to increase to 70% in 2019.
The agency also shared an overview of upcoming projects and developments expected in the coming year. Among them is the establishment of lithium-ion battery manufacturing, not just for the automotive market – the project, when it takes flight, will make the country the first in the region to produce lithium-ion cells, and the aim is to make Malaysia the regional production hub for this.
Also expected to be set up this year is an autonomous vehicle test-bed (AVTB) initiative as well as an EV interoperability centre (EVIC) and a biodiesel application research centre, the latter working towards establishing eventual adoption of B15 and B20 biodiesel in the country.
Research on a host of identified national roadmaps is also on the cards, on topics such as remanufacturing, mobility technology and after-sales service. Plans are also afoot to open new MARii satellite facilities, or centres of competency, across the country, these being in Kota Kinabalu, Langkawi, UiTM Shah Alam, UPM Serdang, UKM Bangi and UCTS Sibu.
Also present at the event was Ong Kian Ming, the deputy minister of international trade and industry. “The key figures presented today are a clear signal that the automotive industry intends to lead Malaysia’s drive towards emerging as a serious contender in the regional and global markets,” he said in his speech.
He added that the entire ecosystem must further transform to meet changing demands for future automotive products and services.
Looking to sell your car? Sell it with Carro.
car exports bound to hit new highs in 2019, with Proton commence RHD X70 units for Asean.
Half of ASEAN market is LHD. Just to note
Economy now is not booming because 60 years of corruption has made investors run away. Countries all over the world term us as a klepto country now
60 years of corruption has made our thinking incompetent. However, things are getting better as of May 9th 2018 onwards.
MARii needs a new boss
The NAP and NEP has been a big joke from day 1. Even companies that CKD in Malaysia also now planning to close shop and CKD in Thailand to re export back to Malaysia
Lolz! That was during 1st half the year when economy was booming. now economy is tanking, and foreign investors r scared to come here anymore.
Lolz! You mean foreign investors racing to come here during 1st half the year , 1Mdb era..
Correct! 1MDB was the catalyst for foreign investors to come here. Like a shining beacon for global investors and money was flowing in, ringgit was amongst the highest performer in the world. Now look what happened in latter of 2018, every investment left or leaving, due to a foolish decision by a voting population fooled into making the wrong choice.
Lolz! Correct there. During 1MDB, every foreign investor and VCs were coming and money was flowing in. Now with PH, nobody has confidence in how they will run the Gomen (and looking at things, their fears are well justified), so all investment and money flows out. Wasn’t Robert K supposed to bring his billions back home? Suddenly realised his fortune will be in jeopardy under PH regime?
Yes… We need electric cars, not gas…
MARii blur. They told ProTiga to make gas cars. Whole world use EV cars but only Malaysia use LPG cars.
MARii is blur
MAI like to goreng a lot. But past 5 years they still have not sorted 3 most important issues
1) Where is the promise to reduce car prices by 30%? Najib said this 5 years ago. Najib said car prices was the highest in the world and he promised he would reduce car prices 30%. Every year we waited. It became higher and higher instead. Why MAI did not ask their boss to honour his promise?
2) Our AP issue is still there. 30 million Malaysians suffer just because 30 AP Big Guns want to be yearly billionaires. How long is this going to go on? Every year MAI give us the same goreng that the matter is being looked into, but nothing happens.
3) All investments are going to Thailand. The past 20 years, we have lost RM Trillions (few hundred thousand million USD from car firms investing in Thailand). We even lost few hundred thousand jobs that was meant for Malaysians but it has gone to Thais now. Recently, even Dyson decided to open in Singapore to make EV cars. Why is MAI losing all the money?
MAI better close down. To maintain MAI, it cost over hundred million per year. But they do nothing. It is a waste of tax payers money
john here in PT said that car prices were reduced by 30%. he also said that we had the cheapest car and petrol prices in the world under MO1. biggest joke ever
We are all fed up of the fake news by john. Dah bosan.
This the same guy who told us Proton had no debts and had paid off all their debts and Proton was making lots of money
The inrease are due to our currency going down and down.
Our currency is going down because of 60 years of corruption.
I think the new engine factory by perodua and jv between naza and Peugeot play a big part of the increase in our export
12bil for parts and components export…not bad.
How do they define ‘jobs created’, is it throughout the whole chain?
Out of the many things to question, how in the heck did they get 70% EEV?? A 1.5 ICE considered EEV is rubbish and shows how disconnected these people are from reality.