At today’s updates on the Automotive Industry 2017 and Outlook in 2018 presentation held by the ministry of international trade and industry (MITI), projections for the coming year were offered along with the statistical overview for 2017.

In 2018, growth is expected on all fronts. Total production volume (TPV) is expected to grow by around 4% to 530,000-535,000 units, while total industry volume (TIV) is anticipated to climb to around 586,000-591,000 units, effectively a 2% growth from 2017.

In terms of Energy Efficient Vehicle (EEV) penetration, 2018 will see another increase, going up from the 52% in 2017 to 60%, with production of EEVs rising to around 350,000 units from the 308,807 in 2017.

He added that the government expects to see higher achievements in 2018, especially in line with future global trends in the sector, including electric and hybrid vehicle growth.

One new vehicle assembler will join the list this year, bringing the total to 28, and the industry will see nine new parts and component manufacturers (vendors) this year.

The automotive workforce is also anticipated to increase, with more than 29,000 new jobs expected to come about in 2018, and this year the industry is set to employ more than 755,000 people and increase the contribution of the country’s GDP to 4.5% from the 4% registered last year.

In 2018, RM12.5 billion is targeted for the exports of parts and components, around half a billion more than the RM12 billion mark for 2017.

Exports of remanufactured parts are also expected to increase to RM800 million this year (in 2017, RM516.4 million as of November).

Vehicle exports are also targeted to climb to 34,000 units this year (in 2017, 18,887 as of November), but minister of international trade and industry Datuk Seri Mustapa Mohamad said that he was “disappointed” with the performance of CBU car exports, which has hovered around the RM1 billion mark for a few years without much progress.

“Exports of CBU vehicles have been disappointing, but parts and components exports have showed good progress, so from NAP 2018 more focus will be put on the exports of parts and components,” he said.

A more detailed projection beyond 2018 is expected to be outlined in the review of the National Automotive Policy (NAP) roadmap that is set to be announced in the middle of 2018.