New car sales to increase by 3.15% for 2015 – report

Driven_Web_Series_2014_Honda_City_vs_Toyota_Vios_vs_Nissan_Almera_004

Despite the unpredictable repercussions stemming from the implementation of the goods and service tax (GST), Frost & Sullivan Malaysia is forecasting new car sales in the country to grow by 3.15% this year, Bernama reports.

The company’s senior partner, Kavan Mukhtyar, believes that the implementation of GST will lead to a 1%-3% drop in new car prices. “At a broad level, we believe there will be some decline in car prices after the GST implementation for mass-market models, while the more premium models could go up slightly by 1%-2%.”

Mukhtyar said that sales for 2015 are projected to climb to 685,950 units, compared to 665,000 units in 2014, helped by lower fuel prices in the first quarter of 2015. Furthermore, “the high back orders in 2014 from the Perodua Axia and Proton Iriz are likely to support vehicle sales growth this year,” he said.

New passenger vehicle sales from the A- and B-segement are expected to form the bulk of the increase, as “consumers will focus on fuel-efficient vehicles” in light of the increased cost of ownership for private vehicles as well as tighter loan approvals by financial institutions.

On the local front, Mukhtyar expects the combined 53.2% market share of Perodua and Proton – the former with 33.1%, the latter with 20.1% – in 2014 to remain unchanged. Meanwhile, players such as UMW Toyota and Honda Malaysia are expected to further increase their market share in the non-national segment.

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The latter, in particular, saw its market share grow by 4.2% last year to 13% from 2013 (8.8%), helped along by the introduction of the new City and Jazz. The increase also makes Honda Malaysia the new largest non-national player in the passenger vehicle market, just ahead of UMW Toyota’s 12.3% – the latter also improved its performance from the 10.6% share it had in 2013.

Frost & Sullivan says that further growth in the segment could be contributed by manufacturers looking to take advantage of the government’s incentives granted for projects in the energy efficient vehicle (EEV) segment. Additionally, the introduction of more locally-assembled (CKD) cars from major players are also expected to help the market expand.

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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

  • ScourgePrime (Member) on Jan 08, 2015 at 12:12 pm

    In Malaysia future,there’s no people buy peformance car because of its price so they just stick with peformance wannabe economy car. Alright I’m gonna look at classified of old Toyota’s

    Like or Dislike: Thumb up 9 Thumb down 3
    • ProtonGSC on Jan 08, 2015 at 12:35 pm

      More worst news from Malaysia Automotive…

      Fuel price drop anot they still increase.
      MAI/MITI continue monopoly this industry, Cronies keep making shits and increasing price as they wish.

      From now on I will only buy 2nd hand or clear stock model.

      Like or Dislike: Thumb up 23 Thumb down 7
      • LatukBandar on Jan 08, 2015 at 1:38 pm

        I think u need to go back to school. fail your england?

        It says car sales increase 3.15%, not car price increase by 3.15%.

        SALES, not PRICE.

        Like or Dislike: Thumb up 24 Thumb down 4
        • Fail England….???

          Like or Dislike: Thumb up 12 Thumb down 2
        • ProtonGSC on Jan 08, 2015 at 3:12 pm

          England…? wait and keep support your cronies buddies.

          Like or Dislike: Thumb up 8 Thumb down 1
          • Same L0rrrr on Jan 08, 2015 at 5:23 pm

            Busier and busier year ahead…
            Better and better bonus ahead…
            No pain no gain. Hope everyone drives a good car.

            Which one is good car? Sales figures tell.

            Like or Dislike: Thumb up 1 Thumb down 0
          • vvvti on Jan 08, 2015 at 7:32 pm

            Lol same lorrrr better gobto school
            sales good doesn’t mean cars good

            Like or Dislike: Thumb up 1 Thumb down 1
          • Latuk on Jan 09, 2015 at 3:51 am

            And sales no good doesn’t mean car good

            Like or Dislike: Thumb up 1 Thumb down 0
        • wan83 on Jan 08, 2015 at 3:26 pm

          Haha. Nice one Latuk!

          Like or Dislike: Thumb up 3 Thumb down 0
      • OPisretarded on Jan 08, 2015 at 2:01 pm

        you must be retarded. stop jumping to conclusions and read the damn article properly.

        Like or Dislike: Thumb up 0 Thumb down 5
    • Abu Sayur on Jan 08, 2015 at 1:00 pm

      Performance cars is for the rich and always will be

      Like or Dislike: Thumb up 3 Thumb down 4
  • I really hope, the coming generation of people who are old enough to vote for the next election chooses wisely.
    What with tragic air flight crashes, crazy floods, corruption is the last thing we need. Our ringgit value is shrinking more drastically than ever.

    Like or Dislike: Thumb up 16 Thumb down 2
    • This is a car blog, dude

      Like or Dislike: Thumb up 4 Thumb down 0
    • I hope people that have enough money to buy a car to choose wisely which carmaker they buy from. Stop supporting carmaker that only hides behind the G for protection and ask for more money

      Like or Dislike: Thumb up 0 Thumb down 0
  • abahko on Jan 08, 2015 at 1:00 pm

    lower down the tax duty, in no time sales gonna boost over 5% instead of only 3.15%.

    Like or Dislike: Thumb up 11 Thumb down 0
  • What nonsense is that? 1%-2% drop in car price but slight increase of 2% for premium car brand? While other countries are working on lowering the car tax for citizens to own better car. Malaysia’s policy is always on the verge of killing its citizens by charging high price for almost everything.

    Since when will Malaysia government reduce excise duty on cars? After Tun death? Well i am waiting.

    Like or Dislike: Thumb up 25 Thumb down 3
    • I will celebrate with you,bro. If his death can cause car price drop…Cheers!

      Like or Dislike: Thumb up 15 Thumb down 2
      • ScourgePrime (Member) on Jan 08, 2015 at 2:30 pm

        Lets make Tun Death fan club!!! :D Cheers!

        Like or Dislike: Thumb up 9 Thumb down 2
        • Proton Supporter on Jan 08, 2015 at 3:33 pm

          Proton how?

          Like or Dislike: Thumb up 4 Thumb down 2
          • Same L0rrrr on Jan 08, 2015 at 5:39 pm

            Proton can just ask billions ringgits of funding from government.

            Proton won’t fall before government fall.

            Government won’t fall before every Malaysian fall.

            Proton is safer than you on any day before you go bankrupt. Don’t worry.

            Like or Dislike: Thumb up 3 Thumb down 3
  • protonsucks on Jan 08, 2015 at 1:08 pm

    sales increase , ok no problem, as long not price increase…. but if sales increase so little percentage, i forecast that the stupid gomen is not goin to lower the car price also…

    Like or Dislike: Thumb up 6 Thumb down 0
  • I think this sales figure increased should thanks to contribution from Produa Axia…

    Like or Dislike: Thumb up 5 Thumb down 1
  • slk3879 on Jan 08, 2015 at 2:05 pm

    Talk only ma…

    Always talk talk talk…

    Now still wanna talk EEV…

    Honda Malaysia already slammed everyone face by declaring their EEV City and EEV Jazz price will remained unchanged…

    Still wanna talk EEV… shut up la

    Like or Dislike: Thumb up 38 Thumb down 1
  • almighty tokong lim guan eng on Jan 08, 2015 at 3:38 pm

    Only in Malaysia you pay 100% tax on car price. Other places where got. Take for example UK, car price no tax, insurance free, maintenance free somemore, why not Malaysia? People in UK dont pay 6% GST tax oso. Their gomen very well managed and very rich, no need to collect tax from people. Even in Singapore and Thailand got no tax. Here in Malaysia, stupid proton car oso got tax! When will Malaysia be like developed nation that give car, fuel free to its people. Here in Malaysia, big income oso cannot live easy. Myself I sell DVD, big income oso can only afford Honda Civic. BMW and Mercedes I can only dream. If you go Germany you see everybody can afford Mercedes. Only in Malaysia you cannot.

    Like or Dislike: Thumb up 6 Thumb down 10
    • iSupport on Jan 08, 2015 at 4:00 pm

      I agree with you almighty… Nonsense prime minister & sucking peoples blood, feeding cronies with millions. hope he die in the worst airplane crash. Or disappear in a plane like MH370.

      Like or Dislike: Thumb up 6 Thumb down 3
      • almighty lim guan eng on Jan 08, 2015 at 4:13 pm

        thank you for agree…

        but killing him no use, latter they replace with their own kind anyway. We must put our own people in power becose we know we are not corrupt but good people.

        Like or Dislike: Thumb up 6 Thumb down 5
        • 1Malaysia on Jan 09, 2015 at 3:37 am

          Also hope Proton will close shop soon, our economy is screwed because of it. Do you agree, almighty?

          Like or Dislike: Thumb up 1 Thumb down 1
    • Fact Checker on Jan 09, 2015 at 10:52 am

      Where did you take your example? UK has VAT@GST at 20%, and since when doesnt have to pay insurance and maintenance? you think after you buy car in the UK you dont have to pay for anything else except petrol? WTH.

      Like or Dislike: Thumb up 4 Thumb down 0
  • along on Jan 08, 2015 at 4:18 pm

    Let prove them wrong, let stop buying new cars for a year or 2. Let the TIV down by 10-15%… then price will surely come down…

    When the buying stop, the killing can too…
    If we work together, we can win this…

    Like or Dislike: Thumb up 11 Thumb down 0
  • Johny on Jan 08, 2015 at 5:55 pm

    I wonder why Malaysian so angry with car prices.
    If you can’t afford expensive car, just buy whichever that you can afford la..
    My friend only drive 2nd hand myvi but already have 3 houses and 15 acre of fruits hamlet. He never complaints about car prices. Even myself ask him to change his car but he don’t want.
    Drive expensive car won’t give you anything other than rich feelings for at least 2-3 years.

    Like or Dislike: Thumb up 9 Thumb down 6
  • Anonymous on Jan 09, 2015 at 12:58 am

    I doubt so, with the implementation of GST and malaysia currency keep dropping which lead to higher car price and it’s pretty hard to get loan from bank nowadays. With all this negative stuff , think ppl will buy motorbike

    Like or Dislike: Thumb up 1 Thumb down 0
 

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