Malaysia Sales Up in November; Automakers Cautious on 2015 Prospects

Malaysia’s new-vehicle sales rose 5.9% to 55,313 units in November, and the Malaysian Automotive Assn. says it expects even higher deliveries in December thanks to aggressive promotional campaigns by automakers.

The passenger-vehicle segment generated November volume of 48,622 units, up 6.3% from a year-ago’s 45,749, the government’s Bernama news service reports.

Commercial-vehicle deliveries rose to 6,691 units for the month, from year-ago’s 6,503.

The result left year-to-date LV sales at 601,805 units, up 1.1% from like-2013’s 595,300.

The month’s production fell to 47,422 units, compared with 54,003 last year.

National car company Perodua is forecasting its full-year sales will exceed 195,000 units, driven by the release of its energy-efficient Axia model.

President and CEO Aminar Rashid Salleh tells Bernama Perodua has raised its forecast from an earlier prediction of 193,000 units after receiving 62,000 orders for the Axia following its Aug. 15 launch.

“We have registered and delivered 26,000 units of the Axia, and we are working hard to speed up production so customers (won’t) have to wait very long,” Aminar says.

With the market on the rise, Ford Malaysia posted its best-ever November performance, as sales rose 32% year-over-year to 1,080 units. That left Ford Malaysia’s 11-month deliveries up 29% to 12,506 units, with the automaker on track for a record sales year.

The November result was led by the Ranger pickup, up 49% to 750 units. Through November, Ranger sales have risen 47% to 7,581.

Uncertainties over the impact of the 6% goods and services tax next April 1, rising living costs and bleak global economic outlook has domestic automaker Proton cautious about 2015.

“Customers are taking a step back to wait and see what holds for them after the GST due to the many announcements on reduction of car prices,” Proton CEO Abdul Harith Abdullah tells Bernama.

He says Proton also is cautious and mindful of the impending introduction of the GST, expected to produce a soft first-half 2015.

A weakening of Malaysia’s ringgit against major currencies may not help either, as imports will become more expensive, pushing car prices higher, he says.

Still, Abdul Harith says Proton is ready to collaborate in the ASEAN car project, saying the region is the next-largest growing market in the world after China, and ASEAN countries should protect their own territory by producing homegrown products.

“We would be very happy to extend our market deeper into other ASEAN countries with their collaboration, in expanding our brand further,” he tells Bernama.

Proton is already an ASEAN automaker, as it has its own manufacturing facilities producing locally branded cars, unlike automakers in other ASEAN countries, he says.

“Proton is ever willing to assist any country that is willing to grow together with us, with the blessings of the Malaysian government,” he says.

MAA President Aishah Ahmad tells the news agency the industry may experience slow expansion in the early part of next year.

“Total industry volume for 2014 may settle at 660,000 units, a 1% growth, as compared to 2013's 655,793 units,” she says. “For 2015, it could be similar to 2014, or it could be flat growth, but it's too early to predict.”

Aishah says the MAA may need to revise its earlier forecasts of 693,500 units for 2015, 708,000 units for 2016, 723,700 units for 2017 and 740,400 for 2018.

Malaysian Automotive Institute CEO Madani Sahari says he believes the implementation of the GST should stimulate demand for vehicles by reducing prices with the abolishment of the 4% sales and services tax.

Madani tells Bernama the situation is being monitored closely by the original equipment manufacturers, which would adjust their marketing plans accordingly.

“In a way, it benefits the consumers,” he says.

Madani says the MAI is undertaking a study on the long-term effects of the weak ringgit, especially on the supply chain.

“Generally, there is mixed reaction,” he says. “The domestic automotive industry uses both the U.S. dollar and Japanese yen for their international transactions. While the ringgit depreciates against the U.S. dollar, it appreciates against the yen.”