Not a buyer’s market anymore?

Malaysian Automotive Association (MAA) president Datuk Aishah Ahmad says all the offers and promotions that have been offered by automotive companies here in Malaysia could soon be over, with sales from March onwards expected to pick up to normal levels, removing the need for outrageous promotions that affect car manufacturer’s profitabilities.

“MAA hopes that consumers will start buying more vehicles. Right now is the best time to buy because there are still a lot of offers. Now that all the stocks have been almost cleared, we hope the second half of 2007 will be a better year for the auto industry,” Datuk Aishah said, advising car buyers. But are car buyers really holding back their purchasers? Or could it be something else? Like inability to purchase?

Source

Related Posts:
Johor Motor Sales

Looking to sell your car? Sell it with Carro.

10% discount when you renew your car insurance

Compare prices between different insurer providers and use the promo code 'PAULTAN10' when you make your payment to save the most on your car insurance renewal compared to other competing services.

Car Insurance

Paul Tan

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.

 

Comments

  • analyzer (Member) on Mar 12, 2007 at 12:12 pm

    somehow, i feel toyota are still gonna give out promotions (such as the toyota vios-es in which the new model is gonna be launched soon), but its true that we don't quite see crazy discounts like we use to.. exception for the proton iswara's that are selling at rm27k…

    btw paul, did u get to check out the new toyota vios/belta in toyota thailand's website? any idea when's it gonna arrive or launched here? pretty sweet looking car..

    Like or Dislike: Thumb up 0 Thumb down 0
  • volvolover (Member) on Mar 12, 2007 at 2:10 pm

    Everytime she opens her mouth shit comes out. Last time she says cars scrapping for 2006 Budget for better environment when proton still sells car with ABS and EBD and saga still selling and public transport is bad. Last month MAA says sale is slow because of bank loan and fact is our cars is highly tax and proton is "cheap" compared to foreign cars and proton has tax too, but much lower.

    Like or Dislike: Thumb up 0 Thumb down 0
  • J (Member) on Mar 12, 2007 at 3:52 pm

    Ya right … if it is not a "Buyer's Market" anymore, why not increase all car price of foreign makes (Toyota, Honda, Nissan, Hyundai..) by 30% and increase local makes (Proton, Perodua…) by 50% ?

    That way, all auto makers make money, and Proton will be saved as well :)

    I think she need to go back to study Economic 101 lah :)

    Like or Dislike: Thumb up 0 Thumb down 0
  • kevyeoh (Member) on Mar 12, 2007 at 3:53 pm

    i'm getting used to hearing this type of comment already… well… just let them say what they want… no matter what they say…i can't buy a car i want yet now cause it's still expensive for me… so it's not going to change anything… ;)

    Like or Dislike: Thumb up 0 Thumb down 0
  • Cire (Member) on Mar 12, 2007 at 4:17 pm

    Inability to purchase is one of the factors as loans are not so easily attainable if one's credit status is not healthy.

    The other main factor is the dirt low trade in value of the existing car. As mentioned earlier in the reports, the majority of the car buyers in msia is actually existing car owners. Only a small percentage of the total car buyers in msia is a first time buyer. If the trade in value is extremely low for the exhorbitant price paid out when its new, who would want to change cars and be further in debt, and lost tons off the traded in car?

    And in relation, the possibility of no takers for the used cars also contributed to the low registration of new cars presently.

    Unless the above is resolved, you would still see a moderate if not low growth of the car market for months to come.

    Could the MAA work with the G, and find an avenue out for the thousands of used cars parked at the yards now?

    Send it out to overseas, or give special incentive to the dealers to scrap the cars off instead. Cost plus some percentage as recovery plan?

    Like or Dislike: Thumb up 0 Thumb down 0
  • matomyam (Member) on Mar 12, 2007 at 5:01 pm

    kevyeoh,,i,m doing the same thing as u,,i,m holding back my purchase,,until the Govt lower the &^%$ing tax,,no matter ho long it takes,,it has not occurred to the lady that many many Malaysians are doing this,,,Malaysia boleh

    Like or Dislike: Thumb up 0 Thumb down 0
  • kendo (Member) on Mar 12, 2007 at 5:02 pm

    yeah, u can said whatever u want,

    rakyats are not buying!!!!!!!

    all the rakyats money have gone to subsidized

    2rd Mid-ring road, Toll increases, NS camps,

    Matrade overpriced building etc….

    Like or Dislike: Thumb up 0 Thumb down 0
  • Gus-Gus (Member) on Mar 12, 2007 at 6:05 pm

    That woman Datuk Aishah Ahmad really has no idea what she is talking about. Typical of someone who is in a position of authority, she is out of touch with the reality of life.

    If someone could really afford to splash out on a new car, does she think they wouldn't?? Obviously, if car sales are low, it's because people can't afford to buy cars – whether new or used.

    Being "in the trade", I sincerely doubt if she has paid retail for a car in a long while. So, car offer or no car offer, utililty bills still have to be paid, food still has still got to get on the table and clothes still eventually need to be replaced.

    As for the "outrageous promotions" being offered for cars at the moment, Malaysians are still paying FAR too much for their cars. The promotional prices are only going part way to making the prices more realistic. Pity that it's the manufacturers who are cutting their prices (and profits) and not the govt reducing car taxes.

    As for the Iswara promotional price, Proton should be ashamed of themselves for STILL selling a almost 20 year old model with purely cosmetic updates. What ever price they sell that car for, it's still an insult to the Malaysian consumer. Where else but in Malaysia would a car company dare to sell near-20 year old technology as "new" and offer a 'special promotional price' for it. And Proton, pls cut the crap that it is for low-income groups to get on to the "new car ownership" ladder. If Proton really cared about car ownership they would stop overcharging Malaysians for their Protons in order to subsidise the price of Protons abroad. And the govt wouldn't have to help Proton cars to sell by taxing other car brands beyond reasonable reach of the average Malaysian.

    Car sales will only increase when Proton is gone and the Proton-protectionist taxes are removed.

    Like or Dislike: Thumb up 0 Thumb down 0
  • matomyam (Member) on Mar 12, 2007 at 6:26 pm

    Voicing her master's{the govt} hopes and sentiments

    Like or Dislike: Thumb up 0 Thumb down 0
  • ckengyo (Member) on Mar 12, 2007 at 6:31 pm

    that her own opinion, & her responsible 2 boost the market sentiment. but proton r definetely disagree with her, new offer saga only less then 27K. talk as u 1 cos the market will prove u any way.

    Like or Dislike: Thumb up 0 Thumb down 0
  • ganz (Member) on Mar 12, 2007 at 6:33 pm

    still…. the car (saga) selling like warm cake.. (not that hot)

    it true.. when u want to trade in your car..the value dropping like hell.. with the economic situtaion is so uncertainty.. it better for me (like the rest of us) using existing car… the most suffer user are the one with 95% loan with 9 years repayment scheme..(i do in this catagory)

    so.. pray to LORD above that my car won't tears apart within this 5 years

    BTW those G above know nothing about this.. are they paying for the car? muhahahahah..

    Like or Dislike: Thumb up 0 Thumb down 0
  • BrakeFader (Member) on Mar 12, 2007 at 6:38 pm

    If car sales are dropping, why would car dealers stop offering crazy promotions after this? If they want sales, their discounts and offers would extend further. I would expect to see an uglier price fight as dealers are desperate to get their stocks out. We have got free TVs, free petrol, free service, free holiday, free ang pau and who knows what they will come out next?

    If dealers stop giving out offers, then it is a good sign that the cars are selling like hot cakes but sadly that is not the situation at the moment. With dealers still having lots of 2005/2006 stocks in their yards, the offers will go.

    Like or Dislike: Thumb up 0 Thumb down 0
  • engtaokia (Member) on Mar 12, 2007 at 7:34 pm

    i hope that ugly bitch is reading our comments here. i will sponsor her to study Economics 101 if she wiiling to do so. she is the president of MAA yet she don't know anything about automotive industry, what a shame!

    Like or Dislike: Thumb up 0 Thumb down 0
  • 4G63T DSM (Member) on Mar 12, 2007 at 9:38 pm

    She has no idea what she is talking about. The general public may be gullible on many things, but one thing is for sure, they are not as gullible as she hopes when it comes to thier wallets.

    The majority of new car buyers are those that already have a car. With trade ins this low, no one is going to change thier cars anytime soon, unless they have a fat lifeline from the gov't.

    Even those that CAN buy a new car, choose not to. I'm planning to keep my car till it rots or when the gov't drop tax completly, which ever is earlier. I plan to do my part and keep this a "buyers market"..and kill proton… :p

    You have to remember who the MAA works for, surely not the public.

    It is still a buyer's market afterall, no matter what sort of wool she would like to pull over your eyes. This is a LAME ASS scare tactic. Even the mandatory obcelesence of old cars tactic didn't raise an eyebrow, you think this would?

    Maybe stocks of new cars are reducing in the yard, but stocks of USED cars are not, and amazing deals can be found out there. Why buy new?

    Like or Dislike: Thumb up 0 Thumb down 0
  • mofo (Member) on Mar 12, 2007 at 9:40 pm

    Who cares, i'm going to stick with my old for another 10 years probably more. If i do planning to buy new one, buy it CASH. Sales will improve ? unless someone offer me Hybrid car with reasonable price OR better technology. I wont paid 25k++ for 15 years tech, foreign country do respect us because after 15 years old model still able make sales.

    Like or Dislike: Thumb up 0 Thumb down 0
  • osh_kosh (Member) on Mar 12, 2007 at 9:54 pm

    yes.. we can do this… hold on to yer purchase… :)

    Like or Dislike: Thumb up 0 Thumb down 0
  • dzat46 (Member) on Mar 12, 2007 at 11:09 pm

    Car prices in Msia too exp…yup, will definately use current car till situation improve

    Like or Dislike: Thumb up 0 Thumb down 0
  • ongtk (Member) on Mar 12, 2007 at 11:31 pm

    She works at FXXX Malaysia (don't know if she is now) but she is known for making statements such as this lastest one to spur the car buying public into buying cars to help spur sales. We all know who she represents – the car companies. The last time a statement last year stating car prices will not drop any further proved otherwise.

    Like or Dislike: Thumb up 0 Thumb down 0
  • offroader manix (Member) on Mar 13, 2007 at 1:05 am

    Well she's wrong……the public cannot afford it at the moment…many cut back on spending…..March car sales up….I think she is bullocks and know nothing.

    M'sia have not weather from the storm yet….there's harder times to come. Our local industry is simply to hard to compete.

    The rakyat suffer very much.

    Increase car sales ? Wipe out Proton or open the market more, then sales will pick up a little.

    Like or Dislike: Thumb up 0 Thumb down 0
  • kendo (Member) on Mar 13, 2007 at 2:38 am

    in USJ,

    dealers like Mitsh–…

    closed shop,

    that tell all.

    Like or Dislike: Thumb up 0 Thumb down 0
  • transformer (Member) on Mar 13, 2007 at 2:43 am

    Almost ALL promotion in Bolehland are a way to sell off stocks, whether is due to old model(Vios, Stream & etc.) or lack of sales(Lancer,Focus & etc.).

    Bolehland Cars pricing are set high! They are to max out profit and to ensure/facilitate promotion in future… A discount of Rm7K, a small case! They could still get you when you go service(some offers free service but still you have to pay lubes & parts)! Its a long term business stategy!

    Yet they blame our G Tax! Even though G Tax plays a major part!

    I feels they are unsincere promotions!

    same of all of you pals, i'm going to use my 13yrs old car for another,

    say 5yrs! or maybe 10yrs coz mine its not a P1 or P2!

    P1 should be out, WE, RAKYAT should and have to right to owns better

    car in terms of safety, quality and economy. Our simple request!

    Rakyat create demand! Not promotions! Not G!

    Like or Dislike: Thumb up 0 Thumb down 0
  • mystvearn (Member) on Mar 13, 2007 at 4:41 am

    everyone is holding to their current cars, no one wants to buy. MMA president can try to up the ante but don't think it will work.

    Like or Dislike: Thumb up 0 Thumb down 0
  • kendo (Member) on Mar 13, 2007 at 5:06 am

    Proton may miss April deadline to find partner

    Potential partners Volkswagen, GM say no decision is imminent

    Email this article

    Print article

    Feedback

    (KUALA LUMPUR) The Malaysian government may miss its deadline to find a partner for Proton Holdings Bhd after Volkswagen AG and General Motors Corp, potential investors for the unprofitable Asian carmaker, said no decision is imminent.

    Biting times: Proton needs help in coming up with new designs and technology to stem falling sales at home

    The government has said it will find an outside partner for the state controlled company before April. The company's cash on hand has fallen 66 per cent over the last year to RM412 million (S$179.5 million) as at Dec 31.

    PSA Peugeot Citroen ended talks with Proton last week and Volkswagen's and GM's chief executives said talks were still in early stages. Proton, which last month reported its biggest quarterly loss in at least eight years, has sought an alliance since Mitsubishi Motors Corp ended their partnership in 2004.

    'The company is not making money and they keep turning out models that don't really sell,' said Rosnani Rasul, an analyst at TA Securities who rates the company 'buy' on the expectation they will win a partner. 'This year, they're going to be losing something like RM700 million, wiping out shareholders' funds. Without a partner, they've got only two or three years to last and I'm being generous.'

    The company needs help in coming up with new designs and technology to stem falling sales at home, where it is losing ground to rivals Perusahaan Otomobil Kedua Sdn and Toyota Motor Corp. For Volkswagen and General Motors, an alliance with Proton may provide them better access in Asia, including Japan, the world's third-biggest car market. Under a free trade agreement signed between Malaysia and Japan, Malaysian-made cars will be able to be distributed in Japan without import duties by 2012.

    Talks on Proton remain 'extremely' preliminary, GM chief executive officer Rick Wagoner said in a March 6 interview. 'It's my sense that there's a lot of work to do.'

    'You can always talk,' Volkswagen's chief executive officer Martin Winterkorn said in a separate interview the same day. 'You can expect some kind of decision in the next half-year.'

    Malaysia's government controls Proton though a 43 per cent stake held by Khazanah Nasional Bhd, a government investment unit. Former prime minister Mahathir Mohamad, who set up Proton in 1983, said last year the business will collapse without a foreign partner.

    Proton shares have added less than one per cent this year, trailing a 9.1 per cent gain by the benchmark Kuala Lumpur Composite Index.

    GM last year added Malaysia to a list of 11 emerging market countries where the Detroit carmaker is trying to increase sales. GM sold 55 per cent of its cars and trucks outside of the US last year and Asia-Pacific was the most profitable region for the company. It only sold 991 vehicles in Malaysia.

    GM is cutting US$9 billion from costs this year after convincing 34,300 US union workers to leave early as part of a plan to close 12 North American locations by the end of 2008. GM lost US$10.6 billion in 2005 and US$3.03 billion in the first nine months of last year.

    The company 'has so many problems of its own that a tie-up with Proton does not make business sense', said Donald Gimbel of Carret & Co in New York. – Bloomberg

    Like or Dislike: Thumb up 0 Thumb down 0
  • NeedGoodCar (Member) on Mar 13, 2007 at 6:42 am

    Not a buyers' market??? What a shit load of nonsense!!! oops, sorry for being so blunt here.

    Like or Dislike: Thumb up 0 Thumb down 0
  • Joe Ooi (Member) on Mar 13, 2007 at 6:52 am

    Not a buyer's market?

    But not a P1 market as well!

    It is P2 nd Toyota market, and of course buyer have plenty of choices.

    Keep boycot P1, keep our existing car, if change, get Japs used car!

    Stop the buying stop the sucking!

    Together we built better future for Malaysia without P1!!!!!!!!!!

    MAA spokwomen = big joker talker with moronic statement!!!!!!!! try to act like marketing chap by trying to create "urgency to buy" in the market!!!!!!! Sigh, pathetic!!!!

    Like or Dislike: Thumb up 0 Thumb down 0
  • topgunthang (Member) on Mar 13, 2007 at 8:39 am

    the way i see it is that the fat ugly lady doesnt need to be in touch with the public's needs. she's making millions for herself and the others around her just by making stupid offensive comments. its worked for her(and the privaliged few around her) for the past few years why would she change anything. the act of taking the heat from the critics (or more like mosquitos buzzings to her) alone guarantees her place in office. kind of like suffering in luxury for a few years to enjoy a guaranteed lifetime of riches.

    what she's banking on is that the majority of the market (i.e proton/peroduo/naza) cars are not going to last another 10 years(as opposed to what we all hope or hope not for some)….which in turn is gonna force the public to buy a new proton(with it being the most affordable after tax)

    even constant critics like this one throughout the decades
    http://drive.com.au/Editorial/ArticleDetail.aspx?…

    wont help much to turn things in the right direction.

    Like or Dislike: Thumb up 0 Thumb down 0
  • cyborgx (Member) on Mar 13, 2007 at 8:40 am

    Wow, I didnt really expect such "quality" from our MAA president. Who the heck elected her anyway. If I were one of the members, I would just tell her to sit down and shut the f**k up rather than provoking the buyers.

    Proton now offering Iswara at RM27k. The Proton CEO claimed that this is an appreciation to all Malaysians support. HAHHA! WHAT A JOKE. They just wanted to clear all those junks in the stockyard, in addition to car sales plunging down world wide.

    Your days are numbered, Proton. Not to mention, people are still holding on purchases until the govt reduces the ridiculous import taxes, duties and all those crap. Consumers are the one who controlled the market, not govt rules and regulations. GG!

    Like or Dislike: Thumb up 0 Thumb down 0
  • bobdbilder (Member) on Mar 13, 2007 at 9:22 am

    She's stuck in trying to appease the public and trying to ease the association of which is the president of.

    If you look at the currency of US against RM, there has been an depreciation of the value over the couple of months. Even if they stick with the same current price, the car companies still earn more. As it is cheaper for them to buy stock now (if buying in greenbacks).

    We should have realised earlier that we don't need to buy a brand new car just because of Raya/CNY. A new car is a financial burden no matter how you look at it. We should be more prudent and buy low capex and low life cycle costs cars. As a consumer, we need to make an informed decision when purchasing a depreciating asset.

    In UK, What Car? has made annual reports on the best cars in terms of new and 2nd hand. The reviews are based on actual facts. We cannot totally use foreign reports as operating and financial conditions differ. But we need this kind of report from an independent body. Definitely not MAA as it is biased towards car sellers. Hopefully the Gov and MAA realise that they need this kind of report to move the market.

    Like or Dislike: Thumb up 0 Thumb down 0
  • mits27 (Member) on Mar 13, 2007 at 1:02 pm

    Soon P1 will appear on our history book, OR it is not worth to even appear on the book!!! If want a car, go buy used car, boycott new car, THIS IS BUYER MARKET, WE WANT THE CHEAPER CAR!!!

    Like or Dislike: Thumb up 0 Thumb down 0
  • auctioncenter2u (Member) on Mar 13, 2007 at 3:24 pm

    When a child was cheated by someone more than 2 times, he/she will never believed the CHEATER anymore.

    YOu all are adult, how can you be cheater by the G more than 10 times?

    Never ever repeated the same mistake again and again. Don't buy any NEW cars is the way. Shut-up Bitch!

    Like or Dislike: Thumb up 0 Thumb down 0
  • kklou (Member) on Mar 13, 2007 at 6:55 pm

    The MAA boss is doing her ususal sales pitch. Yawn!

    Already, Johoreans are facing an economic crisis after the floods have receded. They form a big chunk of the country's car buyers. This year, very few of them will think of buying new cars.

    The way I see it, sales of new cars will not go up.

    Like or Dislike: Thumb up 0 Thumb down 0
  • cyborgx (Member) on Mar 14, 2007 at 4:58 am

    bobdbilder,

    Shes stuck or she sucks at appease the public and..

    well, she does "suck" in a way… O_O

    Like or Dislike: Thumb up 0 Thumb down 0
  • intermilan (Member) on Mar 14, 2007 at 5:23 am

    Well everyone,

    What a great satisfaction reading all your comments! The REAL buyer / potential buyer sentiment.

    Woi president of MAA, 'bacalah..'.

    Kalau ada staff MAA yg baca (sure have one), tell your lady boss about Pal Tan blog site and what the real people down here think about her statement, alrite?

    Like or Dislike: Thumb up 0 Thumb down 0
  • mycar_stolen (Member) on Mar 14, 2007 at 5:50 pm

    MAA also close shop la…you also not smart like Proton. and to all readers out there..the stupid, moronic no dignity Saga is not cheap, it is expensive, 27k and you could die anytime or hit other road user, so do you think it is cheap?

    we just stop the buying first, dont care what people says about your old cars, this is Msia , you want nice car you need AP's not only money or good job/hot wives.

    no connection no ap, no ap no nice car…

    still dont buy Proton, please la.

    Like or Dislike: Thumb up 0 Thumb down 0
  • osh_kosh (Member) on Mar 17, 2007 at 12:36 am

    it's getting hotter here… LOL :)

    most of the post here are same with what in my mind.. hurrah

    Like or Dislike: Thumb up 0 Thumb down 0
 

Add a comment

required

required