MAI reveals its 2015 outlook for the local auto industry

Driven_Web_Series_2014_Honda_City_vs_Toyota_Vios_vs_Nissan_Almera_004

As 2014 comes to an end, the Automotive Institute of Malaysia (MAI) has provided an overview on the outlook for the local automotive industry in 2015, with several key issues and questions being given the spotlight.

Among these are the estimated total industry volume (TIV) for next year. Earlier this year, the Malaysian Automotive Association (MAA) reportedly stated that it expects a 2% increase in TIV figures in 2015, and the MAI originally forecasted a TIV figure of 700,000 for 2015 in October. The MAI says that it will release a new forecast figure for 2015 in early January, with additional calculations taken into account, such as the depreciation of the ringgit and the falling price of crude oil.

Another major revamp is expected in April next year with the implementation of the goods and services tax (GST), which is expected to adjust the prices of new cars. With that said, some parties believe that the introduction of GST could lessen consumer interest, but MAI CEO Madani Sahari says that it’s still too early to tell.

madani wm

“Some consumers will wait and see while others will not. I think this is a natural process. It’s a free market and the consumers have every right to choose what they want,” he said in the MAI release. “The situation is being closely monitored by the OEMs (original equipment manufacturer) and the OEMs normally adjust their market plan accordingly,” he added.

Meanwhile, MAI says that sales of national cars could see an increase next year. Up till November 2014, sales of national cars made up roughly 48% of the market share, and the institute has forecast the same percentage for December.

As for 2015, Madani says that the recent introduction of new models from both Proton and Perodua is expected to lift the domestic TIV to around 52%.

However, certain parties are inclined to believe that the liberalisation of the National Automotive Policy could pose as a threat to sales of national cars. Madani is antithetical about it though, claiming that the move improves competitiveness among the industry players. “There are challenges definitely,” he adds, but stresses that “strategic moves to enable growth in a structure fashion” have been implemented.

In light of falling global crude oil prices, Madani is adamant that “deeper analysis” is required as MAI is currently conducting a study to understand the “effect in longer terms especially if the situation persists.” With both the US dollar and Japanese yen employed in the domestic automotive industry, the study aims to further probe the impact of the US dollar “across the supply chain and its’ significance.”

In relation, Madani is confident that the energy efficient vehicle (EEV) segment “will continue to grow” next year. “It’s not just about fuel prices but also about the technologies that EEVs bring with it. Regardless of the fluctuation in fuel prices, driving an EEV will always result in a lower cost of ownership,” he stated.

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Gregory Sze

An “actor” by training, Gregory Sze realised that he has had enough of drama in his life. Following his number one passion (acting was actually number two), he decided to make the jump into the realm of automotive journalism. He appreciates the simple things in life – a simple car with nothing but back-to-basics mechanical engineering and minimal electronics on board.

 

Comments

  • Guan Yin Maa on Dec 26, 2014 at 12:16 pm

    Seriously ? MAI should be shut down for god sake. MAI = MANA ADA ILMU.

    Well-loved. Like or Dislike: Thumb up 61 Thumb down 5
    • Mai madani on Dec 26, 2014 at 12:21 pm

      Seriously this Mai and It’s Madani. ..

      When do they ever come out with any articles actually relevant and constructive…

      All just sensational crap. Anybody can do that.

      I sometimes wonder why the govt employed these bunch of monkeys for??

      Like or Dislike: Thumb up 45 Thumb down 3
      • MAI = To protect Proton
        Proton = To provide income to crony

        Like or Dislike: Thumb up 50 Thumb down 5
        • Same L0rrrr on Dec 26, 2014 at 4:40 pm

          For a lousy car maker to survive, generations of Malaysians suffer.

          Like or Dislike: Thumb up 19 Thumb down 2
          • PT Awards Nominee on Dec 26, 2014 at 6:04 pm

            Every year PT come out with awards. Who are the top posters, who are the top this and that.

            This year, I propose Madani as the most hated person in the Auto Industry.

            I propose KZM and Maserati(Official) as also the official BN Cybertrooper of the Year

            Like or Dislike: Thumb up 13 Thumb down 3
        • Madani- The Con Artist on Dec 26, 2014 at 4:50 pm

          Madani Sahari is actually a puppet used by the Government to confuse the car buying community to con them into paying high car prices.

          Before Madani comes out with all his predictions and analysis, may I remind you Madani, whatever you have told us in the past has not come out at all. In the past you told us that the Government was moving towards EEV. Many people took your advice and bought Hybrids. Then suddenly, Government themselves pulled the plug on the tax issue and said no more tax benefits on hybrid. So many people were left stuck. Honda also took Madani’s advice and set up billion dollar plant to CKD the Civic and Jazz. That also went down the drain. Billions wasted because Madani gave “false” direction to all the local companies to set CKD Hybrid in Malaysia. Those who bought Hybrids also now suffer because Insurance premiums have gone up (Insurance companies now value your car not RM150,000 but RM250,000) and to replace a stolen Civic Hybrid would cost that much. So, current owners of Hybrid suffer with higher premiums and also nobody wants to touch these cars in the 2nd hand market because the price is like yo yo. So what happened Madani? You always come out with heavy duty charts to show Government encouraging EEV and Hybrids, now apa jadi?

          Second issue is, Madani should, before coming out with all his usual nonsense from his mouth, he should ask his boss Najib, what happened to Najib’s promise to reduce car prices by 30%?

          Najib, before the elections last year promised all MAlaysians that he would reduce car prices by 30% if we voted BN in. He said not to trust PKR because PKR was dishonest. he further stressed that BN always kept their promises and that it was 100% sure he would reduce car prices by 30%

          So what happened to Madani’s boss Najib and his promise?

          Madani, instead of kipas Najib and waiting for your Datukship, do something for the rakyat. Even the AP issue also you have not sorted out. the PEKEMA theives are stealing so much from the rakyat and MAI and MITI and the Government close an eye. 30 million people suffer just for 20 PEKEMA members to make billions per annum each.

          So, why Madani you come out with all this analysis and prediction when two most important things you have not done

          1) Najib’s Promise to reduce car prices 30%
          2) Abolishing the PEKEMA AP conmen

          Like or Dislike: Thumb up 39 Thumb down 1
          • Ah Jib on Dec 26, 2014 at 5:38 pm

            I will increase price by 40% first then reduce by 30% later ok? Same like diesel price.

            Like or Dislike: Thumb up 15 Thumb down 2
      • ProtonGSC on Dec 26, 2014 at 1:23 pm

        MAI next year business plan, is to help cronies gain more income even M’sia and All Rakyat gone bankruptcy.

        MAI and MITI saviour for cronies. Thanks DrM Father of AP system.

        Poor Rakyat continue pay taxes and loan(debts) for whole life.

        BN supporter keep support. By 2020 cronies runs this country.

        Like or Dislike: Thumb up 36 Thumb down 4
        • Please Close MAI down on Dec 26, 2014 at 5:04 pm

          MAI comes under MITI and MAI spends millions spending money to send staff overseas to learn about cars. They all go in one big rombongan, travel by Business Class (Rm20k per ticket) and stay in 5 star hotels all over the world just to get knowledge on cars.

          Each trip alone cost the LHDN millions. And all these trips for what? MAI has done nothing the past few years to improve the car industry.

          All investment running to Thailand. Hundreds of billions in USD are flowing to Thailand and not to Malaysia because car companies prefer to CKD in Thailand.

          That alone shows, MAI needs to be closed down. Besides paying the fat cats at MAI big 5 figure salaries, MAI alone, being the think tank of the car industry of Malaysia has failed to entice any investment in Malaysia the past few years.

          Soon, even companies that are CKDing in Malaysia will close shop and move to Thailand.

          Please close MAI down.

          Like or Dislike: Thumb up 21 Thumb down 1
          • true ka on Dec 27, 2014 at 3:01 pm

            True or not?
            Where do you get all this info?

            Like or Dislike: Thumb up 0 Thumb down 3
        • AP PEKEMA Penipu on Dec 26, 2014 at 5:27 pm

          What is MAI doing to the AP Pekema Penipu who cheat Malaysians? It is such a serious problem because so many people are cheated by the AP PEKEMA Penipus.

          The AP system was born to help the Bumiputera penetrate the car sales industry but we see, AP PEKEMA members are not ONLY selling their APs buta buta BUT also modifying the odometer and shortchanging Malaysians. MAI knows about this but they do nothing. This is the main reason why our car industry is not developed.

          Every single PEKEMA member brings in cars from UK and Japan, 99% of which are ex car rental cars, they have been trashed and trashed with high mileage. Then our PEKEMA thieves bring it down to Malaysia, quickly clock it down to 5000KM and lie to you and tell you it is a showroom car with very low mileage.

          Most of these cars brought in by PEKEMA members have clocked over 200,000 KM but when you buy it, it shows 5000KM or less.

          You are the loser because when you buy a car that has truly clocked over 100,000KM, you will spend a bomb changing worn out parts. As for luxury cars like Porsche, Mercedes and BMW, you can be spending over RM100,000 just in changing worn out parts alone. Maybe even few hundred thousand ringgit when Ferrari or McLaren is concerned.

          There is no way to tell that the car brought in is high mileage. Because the PEKEMA AP thieves send the car to car spas who do a great job washing and touching up the car to look ultra brand new. The also change brand new tyres.
          MAI have been aware of these for the past 10 years but keeping quiet and scared because all the AP holders are UMNO bigshots.

          9 out of 10 end user buyers of AP PEKEMA cars get a rude shock when they take their cars in to authorised delaerships to get their cars checked. Once they plug in their proprietory diagnostic machines, the cars show even 300,000 KM clocked on it. The buyer gets a rude shock because when he bought his Alphard or Porsche, the car shows it has clocked less than 10,000KM.

          Ask most AP PEKEMA car buyers who have actually sent their cars in to authorised dealerships like Porsche Glenmarie or Mercedes Malaysia. All of them will verify one thing to you, they got a rude shock to see the mileage of their cars in the few hundred thousand region. And they felt so so so so cheated.

          They get a further rude shock to find out their car was an ex rental car that has been trashed and trashed and trashed and when the local Malaysian buyer buys it, he thinks its showroom condition with less than 10,000KM done on it.

          There is no avenue to check the true mileage before purchase because due to the UK’s Data Protection Act, even with the Car’s VIN (Vehicle Identification Number), the Malaysian buyer cannot verify the actual mileage before purchase. Only way is to buy the car from the PEKEMA member in Malaysia, then take the car in to the official dealership in Malaysia to check. By then, it is too late. You already bought the car.

          Don’t underestimate this. A car that has done few hundred thousand KM has so much of parts to be replaced. You think buying that Alphard for RM200,000 is cheap. Wait till you spend another RM100,000 on parts replacement alone in 1 or 2 years time.

          Those wanting to buy recon, try asking the seller where the warranty and service booklet is. The seller will lie through their teeth telling you it has no booklet eventhough the car is 2 years old and it has a 5 year warranty in Japan or UK. Surely if it is owned by an individual in the UK he would have kept his service booklet when he sold the car since it is under warranty. But not a single one of our AP PEKEMA thieves can give the service history and booklet to show the history of the car.

          The AP PEKEMA thieves really make a huge profit. You see, in the UK, the price of a car is determined by the mileage and not by the year of make. Unlike Malaysia, the year of the make determines the price. So, for example, a 2010 Mercedes E250 with 20,000KM on it will cost far more expensive than a 2013 E250 with 200,000KM on it in the UK

          Our PEKEMA thieves buy the high mileage cars for dirt cheap because in the UK the high mileage cars are sold super cheap. Eventhough the year of make is 2013 or 2014. Somemore, ex rental cars ares old even cheaper. Companies like Avis and Hertz dispose of their Porsches, Mercedes and BMWs for super low prices as they have clocked few hundred thousand KM on it.

          Then the AP PEKEMA theieves bring the high mileage cars here in Malaysia, modify the odometer to say, below 10,000KM and sell it. You the buyer are so happy thinking you got a 2013 car with 10,000KM it. But in truth, you just bought a lemon that has 200,000KM on it.

          Would you be happy buying a car that shows on the odometer 6000KM when in actual fact it has clocked over 100,000KM on it?

          Please MAI. Please do something to protect the consumers in Malaysia. Don’t always give us bluff. This is blatant and staring right on your face. Why you guys don’t want to do anything?

          Like or Dislike: Thumb up 26 Thumb down 1
          • MAI & Dr M cost us RM Trillions on Dec 26, 2014 at 5:59 pm

            It is solely because of MAI, Mahathir and his AP kawan kawan that for 30 years, 30 million people in Malaysia suffer. Everybody’s biggest payment per month is their cars as we are paying overpriced cars.

            You see, in the 80s or even in the early 90s, you can get a brand new Nissan 130Y or a Toyota Corolla for RM20,000. Now, the same car is RM139,000.

            In truth, the past 30 years, car prices have come down a lot globally and have NOT gone up due to inflation. It has come down due to economies of scale achieved by car companies. This is proven by the fact that you can get a brand new purely Japan made top spec Toyota Camry 2.5 with 9 airbags in the US for US$22,000. That is about RM60,000. The normal B segment car like the Almera is sold in the US for US$9,999. (RM30,000). Mind you, this is after Toyota and Nissan of the US has made their margin and profits and the US government has collected taxes and duties from Nissan and Toyota. The direct from factory prices is far cheaper. UMW will get the above 2.5 Camry for US$15,000 from their principal in Japan. As our Camry is CKD, the price is even lower than that.

            So, in actual fact, most Malaysians can enjoy cheap and reasonable cars but because of MAI and its inefficiencies, all the other car prices have been raised up tremendously to protect Proton and Mahathir’s AP cronies. And MAI has been over the years protecting Mahathir and his AP cronies by giving Malaysians all sorts of bullshit.

            Malaysians have already suffered so much. For 30 years, 30 million people suffer so much. We struggle paying for our high car prices all because of one man’s dream of benefiting his friends and relatives through the AP system and using MAI to confuse the rakyat.

            MAI also cost us hundreds of billions in ringgit in investments from car companies who moved to Thailand and Indonesia. Car companies got fed up with Malaysia’s MITI for protecting Proton and telling other companies what to price their cars. They got sick and tired of the AP system and how genuine brands cannot get enough APs to import their cars in (like Mercedes, BMW and Honda).

            They thought that if they set up their brands and plants in Malaysia, they knew they had to share the pool of APs with the cronies and they knew 90% of all APs go to the cronies. They all moved their operations to Thailand making it the AutoCity of the world.

            Recently GM announced that they rolled out already 1 million cars from Thailand. Imagine if GM was in Malaysia and we taxed GM RM10,000 per car. Calculate that with 1 million cars. Just from GM alone, we lost Billions in USD. What more from the many other companies who wanted to set up shop in Malaysia?

            Because of MAI protecting UMNO and Proton, we lost hundreds of billion of ringgit in investment and trillions of ringgit from jobs lost. If Malaysia was the autocity of Asia, hundreds of thousands of jobs would have been created for Malaysians. We lost all that. Trillions of Ringgit and hundreds of thousands of jobs. Now, Thailand is benefitting from this trillions lost.

            Like or Dislike: Thumb up 20 Thumb down 1
    • Game Over Proton on Dec 26, 2014 at 3:25 pm

      Jan-Nov 2014 car sales:

      1. Perodua 176,531 units
      2. Proton 107,082 units
      3. Toyota 90,943 units
      4. Honda 69,215 units
      5. Nissan 37,288 units
      6. Mitsubishi 13,154
      7. Ford 12,506 units
      8. Mazda 10,514 units
      9. Isuzu 10,072 units
      10. Hyundai Inokom 9,468
      11. Kia 9,067

      Like or Dislike: Thumb up 4 Thumb down 1
      • Albert on Dec 27, 2014 at 4:42 pm

        Game over proton,if your figures are accurate,Proton will end 2014 with sales of 117,000 units ,a drop of 21,000 units compared to 2103 figure of 138,000 units… a drop of 8.5 percent.
        3 years down the road….it will officially be game over when the sales dwindle to 70,000 units.Now ,even with Iriz…sales is not improving,imagine.
        Perodua launched BLOCKBUSTER AXIA,sales is so good that salespeople got no time to shit.
        Perlindungan has created self – destruction of Proton’s dead wood,who believe gomen is giving them everlasting aid.It is just pure “Khayalan”.
        Proton,the shithole is too deep.Even Indah water cant help.

        Like or Dislike: Thumb up 3 Thumb down 0
        • leller on Dec 28, 2014 at 11:01 pm

          Stats wrong somewhere, remember “3200K” orders?

          Lelelelelelel

          Like or Dislike: Thumb up 0 Thumb down 0
  • slk3879 on Dec 26, 2014 at 12:20 pm

    As usual, any information from this guy is as informative as a blank toilet sheet!

    Like or Dislike: Thumb up 34 Thumb down 6
    • wiralution on Dec 26, 2014 at 2:58 pm

      pi MAI pi MAI tang tu jugak!
      Same old boring news recycled dengan harapan giving hope to the rakyat.

      Like or Dislike: Thumb up 10 Thumb down 1
  • Madani on Dec 26, 2014 at 12:21 pm

    Proton, your time is up. No more hiding behind NAP. Prove that you’re a “global” player please! We’re tired of protecting you. It’s time for you to grow up

    Like or Dislike: Thumb up 33 Thumb down 3
  • Madani…what a joke!!!

    Like or Dislike: Thumb up 18 Thumb down 3
    • Three Pedals on Dec 26, 2014 at 5:06 pm

      “It’s a free market and the consumers have every right to choose what they want,”

      LOL it’s a joke indeed. Thanks for making my day.

      Like or Dislike: Thumb up 8 Thumb down 1
  • darkermarker on Dec 26, 2014 at 12:33 pm

    —-yawn—

    watching the paint dry is more exciting than reading about MAI

    Like or Dislike: Thumb up 24 Thumb down 2
  • Same L0rr on Dec 26, 2014 at 12:37 pm

    No hope for the auto industry unless proton close shop

    Like or Dislike: Thumb up 30 Thumb down 3
    • RoadRage (Member) on Dec 26, 2014 at 1:29 pm

      Let’s start the chinaman’s proton blaming game.

      Like or Dislike: Thumb up 6 Thumb down 29
      • Trying to be racist eh?

        Like or Dislike: Thumb up 15 Thumb down 2
      • Its not a chinese problem.
        its not a malay problem.
        its not an indian problem.

        Its a problem affecting all hardworking Malaysians.

        Like or Dislike: Thumb up 22 Thumb down 1
  • droll on Dec 26, 2014 at 12:41 pm

    “Regardless of the fluctuation in fuel prices, driving an EEV will always result in a lower cost of ownership”

    – lower cost of ownership compared to??

    Like or Dislike: Thumb up 12 Thumb down 2
  • nabill (Member) on Dec 26, 2014 at 1:03 pm

    MAI or not , that almera in the first pic is so hidious..might as well have a giant picture of a potato!

    Like or Dislike: Thumb up 5 Thumb down 7
  • Tiger on Dec 26, 2014 at 1:41 pm

    Industry now moving towards Autonomous Driven Cars, and this guy still boasting about EEvs like some latest new technology

    Like or Dislike: Thumb up 9 Thumb down 3
  • Bomoh on Dec 26, 2014 at 3:08 pm

    This institute is totally rubbish

    Like or Dislike: Thumb up 11 Thumb down 1
  • seancorr (Member) on Dec 26, 2014 at 3:33 pm

    Normally when such a big plan like GST is introduced to a nation, the public would have known the effects it has on pricing on products and services as the government would have educated its citizens on it way before its implemented into the economy.

    Now here in Bolehland, most of us know nuts about it and crap even the government and this so called MAI cannot even tell if the price of vehicles will increase or decrease. So now we just gonna leave it to fate to decide if prices will sway up or down like a gamble happening in a casino? Total joke lah these people….sorry Madani/Houdini I lost all respect for you as a person in charge of MAI.

    Like or Dislike: Thumb up 22 Thumb down 1
    • ae101 on Dec 26, 2014 at 4:20 pm

      Gomen and mai didn’t know the price after gst is crapped. They have hired the best consultant from oversea in this area for each of the industries. Basically Mys just adopted other country policy and change how to suck rakyat hard earn money. The more they hide, the more they can twist the profits.

      Like or Dislike: Thumb up 4 Thumb down 2
  • cendol (Member) on Dec 26, 2014 at 3:43 pm

    Where is 30% car price reduction promised by Najib??
    WHat is the outlook on that prospect?

    Like or Dislike: Thumb up 13 Thumb down 0
    • Ice Kacang on Dec 26, 2014 at 10:45 pm

      Here, 30% reduction for Proton parts. You can use it for scrape parts if you want

      http://paultan.org/2014/12/26/proton-we-care-prihatin-banjir/

      Like or Dislike: Thumb up 0 Thumb down 0
  • Pening on Dec 26, 2014 at 5:38 pm

    I tell you, 2015 and beyond looks bleak as long as you MAI, the current G, P*KIMA and various rent seekers are around.
    Do us Malaysian a favour and disappear in 2015 will you. That is my new year wish. Please. Peace.

    Like or Dislike: Thumb up 2 Thumb down 1
  • Samad Jain on Dec 26, 2014 at 5:39 pm

    The best CEO of Year 2014: CEO Madani
    Earned to most money in his pocket and did NOTHING.

    Where can I apply for this job, anyway??

    Like or Dislike: Thumb up 7 Thumb down 1
  • CyberPatrol on Dec 26, 2014 at 6:21 pm

    2014 – 670,000 units (52% by Perodua and Proton) domestic growth
    2015 – 700,000 units (projection excluded the lower fuel and weak ringgit parameters in equations).

    I guess most auto markers like Toyota, Honda, VW, Ford and others change already has new 2015 marketing strategy to restore market share.

    EEV play a vital role to environment and any more decrease in tax exemptions?

    How much was budget and spend to clean our environment for 2014?
    Maybe these spending call for justify the tax exemption of EEV

    Like or Dislike: Thumb up 0 Thumb down 0
  • transformer on Dec 26, 2014 at 8:43 pm

    first its Proton
    then Tax Barrier
    then MITI
    then APKing
    then P*KIMA
    then NAP
    then MAI
    then EEV

    after so many years of boooo ha, car pricing still continue going north. where is 30% price reduction?

    wanna try blame weak Ringgit?

    or wanna blame why rakyat still not contented with jaguh kampung quality?

    Like or Dislike: Thumb up 7 Thumb down 0
    • Najib on Dec 26, 2014 at 11:01 pm

      Already give 30% reduction for… car parts only if you buy Proton

      Like or Dislike: Thumb up 3 Thumb down 0
  • Sam Loo (ori1) on Dec 27, 2014 at 7:10 am

    Would love to have more buyers opting for new Hyundais so that my yard can be stocked up again within 18 months with hailat faced owners

    Like or Dislike: Thumb up 2 Thumb down 1
  • our fault on Dec 27, 2014 at 10:00 am

    when the buying(of substandard proton) stops,
    the killing( of malaysian car buyers) will too!!!!

    Like or Dislike: Thumb up 6 Thumb down 0
  • what the “F” is MAI function???

    Like or Dislike: Thumb up 4 Thumb down 0
  • Ong Chee Boon on Dec 28, 2014 at 2:14 am

    Seriously i dunno what the heck this MAI and Madani is doing? What outlook?

    “could”, “expected”, “conducting a study”, “claiming”, “confident” those terms are VAGUE! Can’t you present a more concrete and valid report and analysis?

    You know, we respect our national policy that’s why we follow it. Problem is if our NAP is lousy and not productive, then no use for us to follow anymore.

    Like or Dislike: Thumb up 1 Thumb down 0
 

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