The Malaysian Automotive Association has revealed its forecast for 2016’s Total Industry Volume (TIV) for vehicle sales. With 2015 marking a record high of 666,674 vehicles registered, the authority believes that there are several factors which will hamper this year’s outcome.
Last year’s (2015) performance was a 0.03% (187 units) improvement on the year before that (2014), which itself saw 666,487 vehicles sold. However, MAA estimates that 2016 will see just 650,000 vehicles move – marking a decline of 2.5% against 2015’s run.
The decline is set to begin in January 2016 itself, with MAA claiming that December 2015’s figures were boosted by excessive year-end offers by car companies. Datuk Aishah Ahmad, president of MAA, said that banks will also continue enforcing more stringent hire purchase loan approvals, which will affect January’s outcome, as well as the rest of the year.
“Individual banks themselves are tightening these processes. Even the loan amount itself, you will not so easily be able to get a 90% loan now, it’s more likely to be 65 to 70% – you’ll have to come up with a bigger downpayment. The repayment period is also being shortened to seven years, and not the nine years as before,” she said.
The 650,000 TIV estimate consists of 575,250 passenger vehicles and 74,750 commercial vehicles. The dip against 2015’s figures has been pinned on several factors. On top of the stringent hire purchase loan approvals, these include the continuing state of our weak ringgit, subdued global economy growth, the uncertainties surrounding the declining crude oil prices and more.
With the general cost of living in the country also going up, MAA also predicts that consumers may also hold back its expenditures on “big ticket items”. Likewise, lower income groups will be affected by banks being more hesitant to approve loan applications. “The rejection rate (for hire purchase loans) could be as high as 30 to 50%, depending on the credit worthiness of the customer,” Aishah said.
Even still, MAA’s TIV estimation for 2016 is still set to mark the industry’s seventh consecutive year of registering more than 600,000 vehicles. Contributing factors to this positive note include the introduction of several large infrastructure projects, such as the improvement and development of new highways nationwide.
The automotive authority also believes that strong and competitive promotional campaigns by car companies keen to maintain and grow their market shares will contribute to the industry’s performance in 2016. It also predicts that new-car models will be very exciting this year, which will also contribute to its overall figures.
The Malaysian Automotive Association also provided a brief forecast for years 2017 to 2020. Without precise clarification, the authority believes that the Malaysian automotive industry will continue to grow consistently beyond 2016, at rates between 2.2% to 3.0% each year.
If accurate, the Malaysian TIV for vehicles sold will break the 700,000 mark in 2019, and will continue that high-performing run into year 2020.
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This is Abbey.
Abbey does not want to buy new cars.
Abbey really don’t give a shit.
Abbey is here just to read the funny comments.
Abbey knows the car prices here are ridiculous.
Abbey knows the government wants people to spend.
Abbey does not want to take long bank loans with interest.
Abbey thinks insurance companies are evil suckers.
Abbey doesn’t like to lose car resale value.
Abbey doesn’t want to pay high car taxes to government.
Abbey doesn’t want to support AP cronies.
Abbey thinks the industry is monopolized by the elites.
Abbey buys good used or nearly new cars.
Abbey have reputable and trustworthy mechanics.
Abbey do not want to support the Malaysian car industry.
Abbey encourage Malaysians to do the same.
Abbey is smart.
Be like Abbey.
I support Abbey!!
Abbey, bukan Rashid? I support Abbey too!
“The rejection rate (for hire purchase loans) could be as high as 30 to 50%, depending on the credit worthiness of the customer,” says CEO.
Good news or bad news just wondering… GST and “unsloved 1mbd scandal” helped economic slow down?
very easy, stop showing the data of sales per-month
we all just want is MANA JANJI DITEPATI?!
janji dicapati.
janji di third-party
Statistics…so?.
Information….so?..
Car prices going down?..NO.
So, who cares car sales down… introduce more tax or increase car prices due to your bullsh1t excuse of currency, when it is internal country issues fault and corruption. Why punish rakyat for not buying cars?… Fools.
Awesome possum. Definitely Pan-Borneo highway should contribute to higher sales in Sabah and Sarawak. Hopefully, Proton’s road to bankruptcy gets accelerated and our brothers and sisters in East Malaysia will not be forced into buying Proton’s junk. Better yet, hopefully CM Adenan declares a ban on importing the junk Proton into Sarawak!
Something comes to mind, for all Proton’s claims of helping to support the Malaysian economy, why no manufacturing ever occurred in East Malaysia?? Hypocritical UMNO crony machine – Proton.
Stop wasting time predicting sales figure, even idiot can predict accurately in current slow market…why the rakyat still cannot see the monthly sales figure by INDIVIDUAL MODELS??
Previously got. But now the car companies very shy, don’t want to give. BTW, the numbers are all give by the car companies, not from JPJ. So go figure
Malaysia economy going down the drain. I saw 999 this week at tv3 there some malay girl who work at pub get arrested. she say ,she only start working there as part time to pay rent during the day she work as bank accountant . wow. cost of living is to high now.
that women, what even her age is. she doesn’t age well.
65 to 70% loan and repayment period being shortened to seven years..
Good move
Bolehland country with so many nasi lemak managed company… Thats why all going down to drainage….
When the country is going to the dogs… this is what you would expect!
This is all 47% fault!
Ya last time the monthly sales repot by individual models evejobryone can see but aftrr tat the geniuses at MyCC (Malaysia Competition Comittee) claimed tat it is illegal to share such data and threathen to fine any company 10% of worldwide annual sales…or somebody charging money for the info..imaybe in Malaysia car sales figure r claassified under ISA
kaki bodek.
Go blame loan and banks. Yes, which is true…but not the whole picture and certainly not the root problem.
When will MAA;
1) Claim the drop to the RAISING of car prices.
2) Claim the drop to increase of cost of living.
3) Claim the drop to a slowdown in the economy.
4) Claim the drop to poor consumer confidence.
After all, 1,2,3,4 is a prerequisite before banks will start being nervous.