Holistic growth for automotive industry in 2017 – MAI

Holistic growth for automotive industry in 2017 – MAI

Earlier in the week, the Malaysian Automotive Association (MAA) revealed the total industry volume (TIV) for 2016, which saw the first downturn in auto sales numbers after six consecutive years of growth. Registrations for the year totalled 580,124 units, a drop of 13% from the previous year.

The association added that with a softening consumer sentiment, sluggish economy and poorly performing ringgit, 2017 is set to be another challenging year, and this is reflected in its conservative forecast of 590,000 units for this year.

The Malaysia Automotive Institute (MAI), however, believes that a holistic growth of the automotive industry will continue in 2017, despite the challenging economic climate.

This, it said, was based on the industry’s performance on the whole in 2016. Sales may have slowed, but the automotive sector saw increased employment and EEV penetration, as well as improved export numbers of parts and component compared to 2015, which has led it to believe that it’s not all doom and gloom in the coming future.

Holistic growth for automotive industry in 2017 – MAI

Revealing the figures at its state of the automotive industry in 2016 presentation yesterday, the institute said that in the manufacturing sector alone, 25,850 jobs were created in 2016, an increase of 8.7% from 2015.

Of these, 10,130 were created through MAI’s Human Capital Development (HCD) programmes such as the Automotive Industry Certification Engineering (AICE), and Industry-Led Professional Certificate (IPC). In 2017, the number of manufacturing jobs is set to climb to 27,000.

Meanwhile, in the after-sales sector, 24,671 jobs were created last year compared to 15,297 in 2015. This year, MAI expects that a further 25,000 jobs will be added to the segment.

It added that the climbing export numbers of CBUs from Malaysia was encouraging. In 2015, 27,792 units of CBU vehicles were exported, and the half-year figures in 2016, which totalled 15,603 units up to June 2016, should have the final figure reaching its target of 30,000 export units for the year (the second half figures are still being tallied).

Holistic growth for automotive industry in 2017 – MAI

In 2017, CBU exports from the country are expected to increase marginally, to 31,000 units. This figure is expected to continue to rise to 150,000 units annually by 2020.

The institute said that so far, 122,610 units have been committed by eight manufacturers to be exported in 2020, and discussions are in progress with three other automakers to fill up the remaining numbers to achieve the 150k target.

Elsewhere, MAI said exports of automotive parts and components have increased since the announcement of the National Automotive Policy 2014 (NAP2014). In 2014, RM4.7 billion worth of parts and components were exported, rising to RM 9.8 billion in 2015.

Holistic growth for automotive industry in 2017 – MAI

In 2016, the value stood at RM7 billion as at June 2016, with the target of more than RM11 billion by the end of 2016 expected to be met, and 2017 is set to see this figure go up to RM12 billion.

The increase in exports of parts and components has been enabled through various programmes to improve the competency of the industry, MAI said. Participants of these programmes have recorded an average increase of 24% in productivity since its inception in 2014, it added.

Furthermore, the remanufacturing sector, a relatively new business area to the automotive ecosystem, recorded a commendable RM282 million worth of exports as of June 2016. The export target of remanufactured parts and components in 2016 is expected to be RM513 million when finally tallied. For 2017, MAI said that exports in the sector are expected to amount to RM750 million.

Holistic growth for automotive industry in 2017 – MAI

Other numbers included that of EEV penetration in the domestic market – this has risen from 32.6% to 39.3% as at November 2016, and is expected to surpass 40% for 2016 when the final numbers are in. This percentage is forecasted to increase to 50% in 2017.

Finally, total production volume figures (TPV), which amounted to 545,253 units in 2016. The institute forecasts that the TPV numbers will touch 570,000 units in 2017, lending the belief that the year should be positive for the industry.

Its CEO Datuk Madani Sahari stressed upon the significance of TPV figures as a measure of industry performance. “The TPV provides a more holistic reflection, with vehicles produced locally for both domestic consumption and exports,” he explained.

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Anthony Lim

Anthony Lim believes that nothing is better than a good smoke and a car with character, with good handling aspects being top of the prize heap. Having spent more than a decade and a half with an English tabloid daily never being able to grasp the meaning of brevity or being succinct, he wags his tail furiously at the idea of waffling - in greater detail - about cars and all their intrinsic peculiarities here.

 

Comments

  • Anything But P1, Greedy P2 on Jan 21, 2017 at 3:41 am

    Madani, Aishah don’t mimpi la. Still syok sendiri. People are not buying cars la because of the ringgit, duty, ap, tax, crony, low gaji, etc. People in your industry their jobs. Your predictions were wrong for 2016. This year less than 500,000?

    Well-loved. Like or Dislike: Thumb up 81 Thumb down 3
    • Kunta Kinte on Jan 21, 2017 at 1:35 pm

      Madani syiok sendiri saying MAI created 20,000 jobs.

      Hello Madani, ask yourself this, why every few weeks, we hear of news some Mat Salleh or Jepunis car company is investing USB Billions in Thailand and Indonesia and created hundreds of thousands of jobs?

      Why aren’t these companies investing in Malaysia anymore? Looks like MAI has failed in their job.

      In the 90s Malaysia was the Detroit of Asia. Because of corruption and cronyism and nepotism, all of them decided to leave Malaysia and make Thailand the Detroit of Asia and CKD all their cars in Thailand.

      We lost Hundreds of Billions in USD (trillions in RM) the past 25 years and we lost hundreds of thousands of jobs. All went to Thailand.

      Even until today, every few weeks we are losing billions in USD. Why is this money going to Thailand? This is supposed to be MAI’s job scope.

      MAI need to ask why are the Mat Salleh and Jepunis staying away from Malaysia. Even worse, they are starting to close their CKD plants here. A matter of time before Honda, Toyota, BMW, Merc and Nissan even close their CKD plant in Malaysia and open in Thailand.

      Can Madani explain why is this happening?

      Well-loved. Like or Dislike: Thumb up 121 Thumb down 4
      • Abang Alza Pakai Topi on Jan 21, 2017 at 4:15 pm

        MAI doesn’t add value to the Malaysian bureaucracy. We already have JPJ, MITI, MIDA, MIROS lalala. So MAI just do some half baked slides just to be read and challenged by PT readers? What a waste of tax money, to fund their government pension.

        Like or Dislike: Thumb up 38 Thumb down 1
      • Kuntek on Jan 21, 2017 at 4:59 pm

        Toyota just invested in a new plant in Malaysia. U on drugs?

        Like or Dislike: Thumb up 3 Thumb down 38
      • Anything But P1, Greedy P2 on Jan 22, 2017 at 2:59 pm

        Madani, Aishah and car makers now know they cannot hit 500,000 this year, trying to come out for 2018. Maybe they will recycle the same shit they said in 2016.

        Like or Dislike: Thumb up 12 Thumb down 0
    • abah kau on Jan 21, 2017 at 1:48 pm

      9 years loan la.. of coz can la… try 5-6 years max. the numbers will drop to 350k.

      Like or Dislike: Thumb up 44 Thumb down 0
  • hehehehehe on Jan 21, 2017 at 8:11 am

    lol this clown fella. no class

    Like or Dislike: Thumb up 36 Thumb down 1
  • Malaysia minister always create false news because they never learn and they think their are on the top. Gajah putih.sendiri syok sendiri

    Like or Dislike: Thumb up 38 Thumb down 1
  • Total production volume gives a figure to indicate fortunes of the automotive producer, whereas total sales volume is the figure that is relevant to us consumers. It doesn’t matter to us if they produce massive amounts of cars for export but we can’t afford to buy.

    Like or Dislike: Thumb up 14 Thumb down 0
  • Gargantia on Jan 21, 2017 at 9:27 am

    MAI talk talk talk and never “walk the talk”. Every year come with nonsense report at the end bring zero benefits to whole Rakyat’s/customers in Malaysia !!!

    Like or Dislike: Thumb up 29 Thumb down 1
  • Kunta Kinte on Jan 21, 2017 at 9:27 am

    MAI is actually a faiure. As usual, they like to goreng with charts and figures. But past 15 yrs, they have done nothing not only for the rakyat, but for the Government as well.

    1) 20 years have passed, nothing done about the AP issue. The AP issue is a dark mystery as it was created to help the Bumiputera businessman penetrate the car industry. But we all know what happens. All the APs are sold to the Chinaman who runs the whole show. Here, there is total no Bumiputera participation in the car industry other than just a named puppet partner.

    2) Then there is the arguement that the car AP companies create jobs for the Bumupitera. This also is false. Go to any AP car showroom, you can see mostly Bangladeshi workers washing the cars and 1 or 2 Malaysians in the admin. That is all. What jobs does it create for Malaysians?

    3) There are about 20 AP members. These members earn billions per year. It is an unequal distribution of wealth as the 30 million Malaysians suffer with high car prices.

    4) There is the argument that these AP members give Government tax. This is also false, as, many of the cars brought in are falsely declared. 2013 car is declared as 2012. This is very common. Practiced rampantly. Government loses a lot of money

    5) Proper Distribution channels also get less sales because buyers go to these AP boys to buy their cars cheaply. Here, UMW gives the government lesser tax because they sell less Aphards cause everybody goes to the AP guys. So 20 AP members become richer and we really don’t know how much tax they decalre since they do cheat by underdeclaring their cars.

    6) The AP guys cheat the consumer by modifying their odometer. high mileage cars, usually ex rental cars are driven over 200,000 KM and highly worn off. These AP guys modify the odometer to say 8000KM, send the car to autospa and it becomes brand new. The loser is you and me cause when you buy a high mileage car, you spend double in changing parts. The AP guys buy this ex rental cars super cheap cause in the UK, high mileage cars are sold super cheap irrespective of year of make. A 2014 Mercedes E250 for example with 100,000KM is far cheaper than a 2012 E250 with 20,000KM

    7) MAI has failed the consumer in this sense because 9 out of 10 buyers of AP cars have bought a car that has their odometer modified to lower attractive mileage

    8) MAI talk big so much about charts and figures but they have yet to make sure all cars in Malaysia implement VSC and ABS for the safety of the rakyat. Malaysian government already said, having VSC saves 45% of lives and accidents in a given year. If you have 10,000 deaths in a year, with VSC, you can save 4500 lives. Isn’t this important MAI? After all MAI was created to make sure cars were given high spec and safe for the rakyat. MAI spend millions of ringgit to send their staff overseas for training. They are trained to furnish a car with basic safety. But they come back to Malaysia and never implement their training at all. Money down the drain. Tax payers money down the drain.

    9) Mai should ask their boss Najib to honour his promise he made to the rakyat to reduce car prices by 30%. Malaysians are sufferign with high cost of living. And now, we got to pay the highest car prices in the world. Why is MAI keeping quiet on this matter? MAI being a government body should ask Najib to honour his promise.

    10) MAI should close down. Wasting our tax payers money. Since its inception, it has never done anything. Infact, caused more harm. 2 years ago, they pushed very hard for EEV and hybrid cars. They said Malaysian Government wanted it. Honda and Toyota invested billions setting up CKD plants for hybrid in Malaysia for the Civic, Jazz etc. Then, now all hilang. No news. Even consumers believed MAI and bought hybrid cars like Prius, Insight, Civic, Jazz. Now, their cars got no value at all cause consumers are scared to touch it in the 2nd hand market. What happened to the hybrid and EEV push MAI?

    Well-loved. Like or Dislike: Thumb up 309 Thumb down 30
    • kzm (Member) on Jan 21, 2017 at 2:25 pm

      Hidden due to lowcomment rating. Click here to see.

      Poorly-rated. Like or Dislike: Thumb up 14 Thumb down 192
      • Kunta Kinte on Jan 21, 2017 at 2:32 pm

        Still in denial? Always sweep things under the carpet. Semua OK. Ekonomi pun OK. Ringgit pun OK.

        Tak ada corruption. Semua bersih.

        Tapi Negara tengah bankrupt.

        Well-loved. Like or Dislike: Thumb up 98 Thumb down 16
        • Truth: Economist says MY still got growth, meanwhile SG is in recession. Which gonna bankrap faster?

          Like or Dislike: Thumb up 1 Thumb down 68
        • kzm (Member) on Jan 21, 2017 at 11:20 pm

          I never say that. i never say economy is gud or no corruption. But i have a problem with pipu exaggerate thing n use false or half truth info to make convincing argument. That is why i say if u wanna spread awareness or truth don be like politician who use lies.

          Like or Dislike: Thumb up 7 Thumb down 75
      • Kunta Kinte on Jan 21, 2017 at 3:17 pm

        sorry bro, I did not thumb you down once also. I think people think what you wrote is just plain wrong.

        Well-loved. Like or Dislike: Thumb up 62 Thumb down 11
        • U dun have to lie. We knows what games u play. Deswai we dun bother to play with u. Automotive is an adult world, its not 4 kids.

          Like or Dislike: Thumb up 3 Thumb down 50
          • Johan Khan on Jan 22, 2017 at 5:36 pm

            ha ha ha. “I don’t friend you”. “We don’t play with you”. Ha Ha Ha. This sounds like kids bro. Are you sure you are not the kid?

            Like or Dislike: Thumb up 10 Thumb down 0
          • Johan Kan kid on Jan 23, 2017 at 2:52 pm

            You sound more like kunta kid

            Like or Dislike: Thumb up 0 Thumb down 4
        • kzm (Member) on Jan 21, 2017 at 11:24 pm

          ya ya i believe u….

          Like or Dislike: Thumb up 6 Thumb down 47
    • pondan on Jan 22, 2017 at 10:09 am

      just to justify for their own existing… after ni value added. if anything that’s no value add, it’s leechers. No more better then cronies

      Like or Dislike: Thumb up 1 Thumb down 1
  • Faiz Roslan on Jan 21, 2017 at 9:50 am

    The reason is very simple MAI. Previously more people had bought Proton and down the years they realised the numerous problems and poor after sales service from Proton and have no choice but to get other cars other than Proton. Once they had purchased other manufacturers they do not need to change their cars as these cars are much superior and reliable than their previous Proton hence the decline in sales and also the decline in Proton sales figure as more and more people choose and migrated to Perodua and other better manufacturers.

    Like or Dislike: Thumb up 30 Thumb down 10
  • Less cars, more public transport. Volume going down is a gud thing! It shows Najib’s public transport is working.

    Like or Dislike: Thumb up 18 Thumb down 5
  • Aero (Member) on Jan 21, 2017 at 10:08 am

    Parts exports is honestly the best thing to happen to the local auto industry so far this decade. Well, if we can’t export many cars, at least we can export many parts ? … it could support a ‘down-up’ value chain.

    Of the 600+ local vendors we have, APM and Sapura are the most valued. Parts exports are also more profitable and feasible. Some vendors even export as far away as the U.S. and Brazil. Some vendors can also benefit from a natural resource advantage, especially rubber.

    Also, I hope MAI will respond to the recent Subaru/ TCIL announcement about a new Thai factory. They should know better than to ignore it. Subaru can easily account for at least 30- 50% of CBU exports from Malaysia in 2016. It would be a shame to lose Subaru.

    Like or Dislike: Thumb up 26 Thumb down 1
    • Sub_zero on Jan 21, 2017 at 7:37 pm

      Till i learn from Youtube where a guy name chrisfix who is mechanic/car wash expert

      When he make a video dissembling a car made in us which have part have made from malaysia

      That’s was weird considering how usa auto industry was

      Like or Dislike: Thumb up 1 Thumb down 0
    • What I gather is, Segambut is technically limited for the type of vehicles Subi wanna assemble (ie its too old). Another reason is TCIL is from the “other” branch of Tan famili and they dun wanna rely on the “main” branch organisation. Theres a lot of “history” between them. TC Subi tomyam is under the “other side”. So its purely business sense, not Gov problem.

      Like or Dislike: Thumb up 1 Thumb down 1
    • Geek01 on Jan 22, 2017 at 12:47 pm

      Just some info – There is a much higher proportion of synthetic (derived from oil) rubber than natural rubber in a car. Natural rubber i susceptible to aging and chemical attack. However,apparently its physical durability (resistance to tearing and abrasion) is better than most synthetic rubbers and commercial tyres have a much higher proportion of natural rubber. For example, from from socfin.com,

      “In other words, the proportion of natural rubber to the tyre weight can reach:

      • Cars (all season): Up to 8% of natural rubber on total tyre weight.

      • Cars (winter): Up to 18% of natural rubber on total tyre weight.

      • Commercial (vans): Up to 12% of natural rubber on total tyre weight.

      • Lorries: Up to 32% of natural rubber on total tyre weight.

      • Others: Up to 40% of natural rubber on total tyre weight.

      Note that radial tubes consume more natural rubber than normal tubes.

      Like or Dislike: Thumb up 1 Thumb down 0
  • C. P. MOHAN on Jan 21, 2017 at 11:03 am

    The 2016 lower car sales is due to the softening consumer sentiment, sluggish economy and poorly performing ringgit, 2017 will be a challenging year. I see continuing or even better discounts/goodies from marques. 2017 will be a crucial year not only for the auto-industry.

    Like or Dislike: Thumb up 4 Thumb down 0
  • why the heck we need so many association to present statistics on car industry?

    well done anyway MAI, i see u got 3 fella already in the organisation ^^

    Like or Dislike: Thumb up 2 Thumb down 6
  • Najib 2.B Razak on Jan 21, 2017 at 12:13 pm

    The only thing i know that is growing is TAXES..Oh wait……

    Like or Dislike: Thumb up 11 Thumb down 1
  • tokmoh. on Jan 21, 2017 at 1:04 pm

    MAI datang lagiii dengan bodoh dia.

    Sales gone down, employment goes up, sounds familiar?

    It’s like proton’s/MAS/any other glc business model. It’s not made to function like a proper business, but to prop up employment for political mileage, yet most are just deadwoods or incompetent clown cronies.

    As a result, business-wise, they’re shit, proton got totally wiped off the floor by perodua and honda. Their cost is also much higher, hence make losses, need bailout constantly.

    This business model is unsustainable, doesn’t need spm to figure it out. Yet, MAI so bangga la this short term thinking without looking at long term consequences.

    So many headcounts, yet all too dumb to think for the business. Like proton, stubbornly holding on to shit powertrain nobody wants, and too ego to accept one from Perodua that could guarantee people’s confidence and trust.

    Like or Dislike: Thumb up 29 Thumb down 0
    • TrueMuch on Jan 22, 2017 at 4:44 am

      Yes, true that.

      INCOMPETENCY is Proton’s biggest problem. Is not that they don’t have the ‘recipe’ for success.

      The recipe is there, but they cook it wrongly.

      Like or Dislike: Thumb up 7 Thumb down 0
  • Holy apa? on Jan 21, 2017 at 3:10 pm

    Apa itu holistic growth? Kena sembahyang kuat2 ker?

    Like or Dislike: Thumb up 28 Thumb down 0
    • Terry on Jan 21, 2017 at 10:05 pm

      I also want to know what it means by “holistic” growth for a car industry.

      Like or Dislike: Thumb up 3 Thumb down 0
      • Anything But P1, Greedy P2 on Jan 23, 2017 at 10:51 am

        Mungkin kena bungkus dalam plastic bag? Or kena lastic dari Thailand?

        Like or Dislike: Thumb up 1 Thumb down 0
    • Holistic in MY auto industry mean:
      Don’t buy imported car. Our national car makers are the best. We have eev vehicle, MPV, sedan, luxury sedan, SUV (tak produce lagi dah, but can buy 2nd hand).
      No safety feature? no problem. Drive more carefully. If accident and you lost your life, it is your fault and the conglomerate have nothing to do with it. If you want to drive fast also can, Just don’t forget to pay saman from PDRM, AES etc. And hefty tax too.
      If accident? Just claim from insurance. They are willing to reimburse you and by doing so you are to loss your NCB. It is the best solution because it is not our problem, it is your problem.
      We do listen to your request & suggestion but we choose to just listen and keep your suggestion as long we can keep. Because it needs money and balls to make change. And we don’t have that.
      We want you to be safe by being our guinea pig. No need to think on your benefit, just follow the order we gave. And do not question what our proposal and action.
      By doing do we can help money circular within this country among few selected individual which may help prosper the economic for selected few.
      Lets forget the past and move forward. No need to raise reduction in car price since RM is wakening. Just buy with close eyes. And that is what your worth is.
      We also promise to organize KL international motor show whenever we want. That is the best for public since we do not want to spend on this and we just don’t want to organize. Tengok la senang2 nanti boleh la buat.
      Very noble approach.

      Like or Dislike: Thumb up 3 Thumb down 0
  • applegreen on Jan 21, 2017 at 10:13 pm

    590,000 target for this year? This is not holistic growth, this is holyshit growth

    Like or Dislike: Thumb up 11 Thumb down 0
  • Ahmadjr on Jan 21, 2017 at 10:33 pm

    So it’s true. You’ll know if someone is not intelligent by looking at their faces

    Like or Dislike: Thumb up 11 Thumb down 0
  • humusjumus on Jan 22, 2017 at 10:12 am

    MAI nie very pandai making charts and statistics.
    But in reality, it never happened.

    So, MAI is a fictional organization with super syoik sendiri ppl

    Like or Dislike: Thumb up 11 Thumb down 0
  • Come out, talk absolute rubbish, finish go back to luxury home in luxury car. Expect dumbos to believe, and all will be well.

    Clown!

    Like or Dislike: Thumb up 10 Thumb down 0
  • Bernard on Jan 22, 2017 at 4:37 pm

    Wah holistic is it? Ha ha ha ha

    Like or Dislike: Thumb up 8 Thumb down 0
  • Danny on Jan 22, 2017 at 7:57 pm

    I seriously do not understand why this ministry was setup.
    Firstly, they are just purely speculating and they always adjust their target every quarter.
    Secondly, why is the government hiring them to do such things.
    Thirdly, it’s a waste of our tax payers money and time.

    GET RID OF THESE PEOPLE

    Like or Dislike: Thumb up 7 Thumb down 0
  • Mikey on Jan 23, 2017 at 9:31 am

    # MAI believe that it’s not all doom and gloom in the coming future #.

    Hello MAI, the fact that the TIV sales have plunged 13% Year On Year tells a lot about our economy.
    If you cannot analyze & tell the truth, you are no better than politician telling lies about our economy.

    In our public opinion polls, this is a sheer sigh of slowing economy. If it is not nip in the butt, we will be in serious trouble.

    Like or Dislike: Thumb up 4 Thumb down 0
  • MAI oh Mai… Year in year out same story rehashed in different slide templates. On Ap recon cars, like it or not, the onus is on the buyers, if he or she likes a UK based car, request for the MOT and UK dealer service history records and evaluate if it is a good buy or otherwise. Same goes for Japan sourced used cars, request for the Japanese inspection report copy, and then decide.. If you can’t get any vehicle history on the car, he or she has to decide whether to take a blind shot gamble and make the purchase or be smart and walk away. It is pointless to lament about the state of the local auto industry cause it is what it is and it is not going to change anytime soon… My 2 cents..

    Like or Dislike: Thumb up 2 Thumb down 0
  • Syok sendiri!!!! Silly..

    Like or Dislike: Thumb up 0 Thumb down 0
 

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