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The Malaysia Automotive Institute (MAI) has provided its review for 2014 as well as its forecast pertaining to several criteria and undertakings for 2015. For 2014, the total industry volume (TIV) for Malaysia has seen an increase of 1.5%, to a total of 665,675 units – a step up from 655,793 for the year 2013.

Several factors for the growth were mentioned including the introduction of new models with better fuel efficiency and safety, more competitive prices and on-going promotions by manufacturers. Perodua continues to maintain dominance of the market share – with a TIV figure of 195,000 – despite falling slightly by 0.5% to 29.4% this year.

Proton remains in second position despite a more significant fall in market share with percentages slipping by 3.8% to 17.4% compared to the 2013’s figure of 21.2%. It records a TIV figure of 115,000. In total, local manufacturers make up a total of 46.8% of the market share.

While UMW Toyota occupies third position with a TIV figure of 102,000 and a market share hold of 15.3%, it is Honda Malaysia that is listed as the biggest gainer as it now holds a 11.6% market share over 2013’s figure of 7.9% – an increase of 3.7%.

In total, sales from the top four manufacturers represent a 65% share of the market with the Perodua Myvi chalking up 82,000 sales, followed by the Alza at 55,000 and newly-introduced Axia at 29,000 units. The Saga remains Proton’s best-seller with 56,000 units sold while sales of the Persona and Exora total at 21,000 and 15,000 units, respectively.

For the year 2015, MAI has stated that its forecasted TIV figure of 700,000 units will be “maintained” – which would signify a growth of 5.1% from 2014. A further increase to 750,000 units is touted pending the viability of various consumer incentive schemes – chief of which is a ‘Cash for Clunkers’ programme.

Several key issues were also brought to light including the appreciating US Dollar (US$) against all major currencies. The immediate impact felt by manufacturers would stem from materials and supplies – which represent 30% – being traded based on current Forex rates. According to MAI, a committee has been set up to monitor the situation across the supply chain.

Looking forward, several key initiatives to further expand the local automotive landscape have been given the green light. The list consists of the development of fundamental technologies including the manufacturing of engines and transmissions, lithium-ion battery technology, electric vehicles (EVs) as well as the introduction of Euro 4 and 5 diesel to several states.