In light of the ongoing Covid-19 pandemic, the Malaysian Automotive Association (MAA) has revised its total industry volume (TIV) forecast for 2020, lowering it from the 607,000 units it projected in January to 400,000 units, The Star reports.
According to MAA president Datuk Aishah Ahmad, the outbreak and resulting movement control order (MCO) from March 18 has severely impacted car sales and consumer sentiment. Following discussions with its members, the association decided to revise its TIV forecast for the year, she told the publication’s StarBiz section.
The new numbers represent a 33.8% contraction from the 604,287 units managed in 2019, and if the projections ring true, it would be the first time in 13 years that the TIV has not breached the 500,000-unit mark.
The updated forecast follows on the association’s announcement of March vehicle sales made yesterday, which showed that sales for the month had dropped by 44% compared to February. It was also 59% lower than the same period last year, a reduction that was in line with analysts’ projections.
On April 13, MIDF Amanah Investment Bank Research (MIDF Research) had said in a report that preliminary indications suggested a 47% to 63% year-on-year reduction in vehicle sales volume in March.
It also slashed its TIV forecast – based on the MCO going into phase four – to 504,850 units for 2020, and said that if the MCO was to be extended to phase five until the end of May the numbers would drop to around 480,000 to 490,000 units.
While it had previously not ruled out pent-up demand returning post Covid-19 to drive some form of demand recovery, the research house said that the extended MCO and the deep, negative implications on corporate earnings, employment security and consumer sentiment would have a significant impact on the industry.
It said that any pent-up demand that existed previously would have probably withered away by now, with consumers having likely to have adopted a “survival” mode outlook, with little priority for discretionary spend in the near-term. Looks like it’s going to be a rough 2020, folks.
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MAA and MAI merged to save taxpayers money.
Actually just keep MAA only as MAI is redundant whose only purpose is to run the ASEAN NCAP facility sponsored by(read: biased to) Perodua.
bile Bantuan amal kebajikan to rakyat were siphoned away even in this difficult period, its clear rakyat mesia are doomed …. Bajet RM100 utk bantuan keluarga putus makanan. Hanye dpt RM30 beras, sardin, maggi, kicap, garam dll… RM70 dh masyuk poket tukang hantar (aka penjawat gahmen PN). tutup jek MAI
How does it even relates? Come on please. Sekorangnya bukan mcem kjaan PH dulu, bagije covid virus masuk free.
MAA is an association of manufacturers thus also taxpayers. MAI (now is MARii) on the hand is a government agency operating largely on taxpayers contribution. They cannot be merged, but MARii can be dissolved as it serve no purpose and bring no benefit to the industry .. my 2 yen
I prefer if PN government dissolved NAP2020 policy made by PH that caused us so much hardships with the drastic price increases.
Let us undo all their disastrous programs that only benefited their cronies & sycophants, and let us re-do from fresh again.
Yes Rob, we need Jho to help us with that.
Yep. Jho is still rich. We should from him how to be rich. Not like how PH college grad ministers become rich.
22 months of hell and chaos. MCO is the right reboot for a fresh start to repair all their damages.
The policy is only creating unnecessary jobs at the government sector ie to review, monitor, and approve. Whereby in reality, they don’t have the strength to do those. Best to just open up the market, and should there be tax or incentive, let it be applicable to all in the industry without conditions. Subsequently, many jobs in the government is no longer necessary especially those at MARii. Save some government expenses !
I think that is what Rob said. Review NAP 2020 policy and restart from scratch what is necessary and what is not. Thow out all those PH hirelings eating taxpayer money for nuts.
MAA and MAI have simpleton jobs in Mesia. Talk, talk, talk and do nothing, contributed nothing but saliva and “sensational hot air” news. I dont really trust their figures as they never being accountable about what they said. Just ball carrier and apple polisher, really.
Sigh…sad that they are still around while good and hardworking rakyat are out of jobs.
MAA no longer relevant. No added value to all ,
600,000 to 400,000 is only a reduction of 1/3, meanwhile Thailand is forecasting a 50% reduction. It isn’t too bad, all things considered and we still have to battle COVID19.
Imagine the amount of duties the government will fail to collect and then handing out covid 19 stimulus packages. No economist worth his/her salt will dare comment for sure.
Should fall by no less than 50%
This is where the high vehicle pries become an issue since “enticing-incentive” to purchase.
As Rob said, time to undo the failed NAP2020 policy and restart our automotive policy afresh with more reasonable pricing.
You sounded what I wanted to say.