KUALA LUMPUR, May 2 — Industry watchers expect Malaysian vehicle sales could fall for a third consecutive year due to weak consumer sentiment, stringent loan approvals and unfavourable market conditions.
According to The Star, the latest annual reports of major automotive distributors reflected the gloomy outlook.
The Malaysian Automotive Association’s (MAA) monthly and quarterly statistics offered a similar picture, with the first quarter's vehicle sales dropping 7 per cent year-on-year while April data is also expected to be unimproved.
The MAA and Maybank Investment Research believe consumers are waiting for the dust to settle in the general election before committing.
Full year sales figures, according to MAA’s projections, are expected to rise 2.3 per cent to 595,000 units.
Total sales hit an all-time high of 666,674 units in 2015, then dropped almost 15 per cent in 2016 before contracting further last year to 576,635 units.
UMW Holdings Berhad, whose UMW Toyota Motor Sdn Bhd unit distributes Toyota cars locally, said in its annual report that currency volatility will continue to be a major concern for their automotive business this year.
Tan Chong Motor Holdings Bhd, the distributor of Nissan vehicles, expects only a marginal recovery in sales this year and industry challenges to prevail, particularly in the first half.
