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Key points:

♦ The second half of 2019 started off with a higher Total Industry Volume (TIV) compared to June 2019, with 50,853 vehicles registered. This was a 19.5% increase or 8,327 units.

♦ 91%, or 46,189 units, of the new vehicles delivered were passenger vehicles (excluding pick-up trucks).

♦ The Malaysian Automotive Association (MAA) attributed the higher TIV to a longer working month, giving companies more selling days.

SALES TREND JULY 2019

♦ Comparisons to the numbers achieved in 2018 show major differences due to the unusual market condition in July 2018. This was brought on by the new government’s decision to remove (or zero-rate) the Goods & Services Tax (GST) for three months. With the purchase price of all new vehicles reduced – a very rare occurrence in the industry’s history. Sales rocketed to a TIV of 68,466 units, the second highest TIV reported since the MAA was established in the 1960s and promoted transparency by sharing the data with its members and the public.

Perodua GST-free ad
One year ago, the market experienced an unusual condition as prices were lowered due to removal of GST, resulting in an unprecedented surge in sales. Therefore there is no point comparing the numbers in July this year with those in 2018.

♦ By the end of July last year, the cumulative TIV after 7 months had reached 358,065 units. This year, without the GST-free boost, it has reached 347,187 units, 6% lower than the level in 2018. 317,064 units were made up of passenger vehicles, while the remainder of 30,123 units were commercial vehicles (including pick-up trucks).

♦ As the MAA has made a forecast of 600,000 units for the 2019 TIV, it means that monthly sales must be 48,387 units in the remaining 5 months. The MAA expects the commercial vehicle sector to pick up with new and ongoing development projects and the segment to account for 66,000 units.

Vehicle manufacturing

♦ Generally, though, the expected increase in TIV is not significant as the forecast of 600,000 units is just 1,286 units more than the actual TIV for 2018 which was 598,714 units.

♦ August sales are expected to be at the same level as July’s although promotions celebrating Merdeka month may persuade some people to change their vehicles.

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♦ The Total Industry Volume (TIV) of new vehicles in the Malaysian market registered was 296,334 units, 2.3% or 6,735 units more than January – June 2018.

All charts provided by the Malaysian Automotive Association (MAA)

♦ The 2019 TIV was made up of 270,875 passenger vehicles (excluding pick-ups) and 25,459 commercial vehicles (including pick-ups). The volume of commercial vehicles in 2019 was 11.2% (3,217 units) lower than for the same period in 2018. All segments of the commercial vehicle category showed declines which has been attributed to economic uncertainties. As a result, businesses have deferred or scaled down their vehicle purchases or replacements.

♦ New vehicle registrations in May 2019 totalled 60,780 units, the highest monthly TIV of the year. Compared to the same month in 2018, it was 41.4% higher.

♦ The lowest TIV this year was reported in February with 39,838 units registered. This was not unusual for the short month and 1.8% lower than what was reported in the same month in 2018.

SALES BY SEGMENTS
♦ By segments, passenger cars accounted for 67% of the TIV with 4WDs/SUVs taking the second largest volume at 24.4% and MPVs falling to 8%. While the volume of passenger cars was lower by 4.8% compared to the same period in 2018, the volume of MPVs was significantly reduced in 2019 by 32.6% as more people chose 4WDs/SUVs.

A flood of new SUV models, especially smaller ones, has seen this segment overtaking MPVs.

♦ Pick-ups continued to make up the largest proportion of sales in the commercial vehicle segment with 16,565 units registered in the first 6 months of 2019. However, this volume was lower than that in 2018 by 14.7%, likely to be reflective of the draw of SUVs for people wanting dual-purpose vehicles.

PRODUCTION
♦ From the 29 vehicle-producing factories around the country, the total output in the first 6 months of 2019 was 285,028 vehicles. This number comprised 266,765 passenger vehicles (excluding pick-ups) and 18,263 commercial vehicles (including pick-ups). The total volume was 1.5% higher than for the same period in 2018 but only passenger vehicles registered an increase (2.1%).

♦ The MAA does not track exports of vehicles from Malaysian plants though the number is not exceptionally large. However, it is known that the Mazda CX-5 is exported in the biggest volume. It is assembled at a dedicated facility within the Inokom manufacturing complex in Kulim, Kedah, which Mazda and its local business partner, Bermaz Motor, spent around RM187 million to set up.

Mazda has been exporting the CX-5 model assembled in Malaysia since 2013.

FORECAST
♦ Although Malaysia’s economy expected to grow between 4.3% to 4.8% during 2019, the MAA believes that consumers and businesses will remain cautious in spending as economic uncertainties are likely to continue through the second half of the year. Therefore, the TIV that was forecast as 600,000 units at the beginning of 2019 will be maintained. As it is, the cumulative TIV for the first half of the year has reached almost half that number.

To become a member of the Malaysian Automotive Association, visit www.maa.org.my .

 

The Malaysian Automotive Association (MAA) is all rallying auto marques in Malaysia to invigorate the market for automobiles from four wheelers to two wheelers, automotive accessories products, car care products, lifestyle products associated with auto brands and commercial vehicles, at the Kuala Lumpur International Motor Show (KLIMS’18) this year.

KLIMS’18 will be held at the largest and newest exhibition arena in Malaysia, Malaysia International Trade and Exhibition Centre (MITEC), from 23 November to 2 December 2018. As the pinnacle of the motoring show calendar of the state, KLIMS is back to ignite the public’s excitement for automobiles with new launches and groundbreaking concepts. Themed “Beyond Mobility”, KLIMS’18 is known as a branding show where auto marques gather to showcase their latest product offerings, automotive dominance and engineering visions.

Since the announcement of KLIMS’18 made early this year, MAA has been receiving enquiries from industry players, the public and media members for information of the show. Datuk Aishah Ahmad, President of MAA (below) said “We are pleased about the responses to KLIMS’18 as the show will not be successful for Malaysia without the support of industry players and the public. As the association representing members’ interests in the automotive industry, MAA is presenting KLIMS to engage our members in unity so that we can be consequential in promoting a stronger industry for the benefit of all members and to provide the public an exciting purview of the possibilities available for their personal or family vehicles.”

The automotive industry players are setting their plans to thrill KLIMS’18 visitors with exhibits that showcases exciting mobility. Ravindran Kurusamy, President of UMW Toyota Motor said “We are delighted that KLIMS is back again this year and being a regular participant at all the previous shows, UMW Toyota Motor will certainly be present. This year, our range is a vibrant and diverse one, demonstrating ever better mobility for all. With ever-better cars, we expect to be able to give visitors a glimpse of the future as well.”

Dennis Ho, Managing Director of Sime Darby Motors – Malaysia, Thailand & Taiwan, said “Sime Darby Motors is pleased to announce its participation at KLIMS’18 with Ford (above) and Hyundai showcasing their latest offerings at its booth. As the sole distributor of Ford vehicles in Malaysia, Sime Darby Auto Connexion’s exhibit will be more than just a showcase. Staying true to its tagline ‘Go Further’, visitors can look forward to special offerings and a rare treat themed around going further in technology and safety. Hyundai-Sime Darby Motors, on the other hand is all out to impress visitors with Hyundai’s latest SUVs that embody the brand’s Modern Premium concept. Hyundai believes in adding premium value to the car beyond just a transportation vehicle. Be sure to check out what Hyundai has to offer as these are no ordinary SUVs.”

Industry players are leveraging on KLIMS’18 as a springboard to drive better performances and capture bigger market. MAA has forecasted a growth of 2.3% for Malaysia’s automotive industry, to reach 590,000 units in Total Industry Volume (TIV) for 2018.  The projected growth comes as a positive sign with the marginal decline in TIV for the past two years.

While more auto brands are expected to confirm their participation, KLIMS’18 has confirmed market leaders such as Daihatsu, Ford, Honda, Hyundai, Infiniti, Isuzu, Kia, Lexus, Mitsubishi, Nissan, Peugeot, Perodua, Proton, Toyota, UD, Kawasaki, Honda motorbikes, 3M, Elite Looks car care products, Good life car accessories, High-tech lubricants, Kakimotor car performance and maintenance, NVK Interiors and V-Kool.

Datuk Aishah Ahmad said “There is still time for industry players to participate at KLIMS’18, however, we are advising companies to confirm their bookings soon, so as not to be left out of available exhibition space.”

KLIMS’18 brings the largest gathering of automotive industry brands and automotive enthusiasts, as well as the public-at-large for a motoring and family-oriented event in Malaysia. KLIMS’18 is expected to make its comeback with over 100 participating exhibitors and attracting over 350,000 visitors.

For more information on KLIMS’18, visit website www.klims.com.my, or contact Trade-Link Exhibition Services Sdn Bhd at Tel:+603-7842 9863 and E-mail info@trade-link-group.com

Kuala Lumpur International Motor Show 2018 Information

Organiser                      : Malaysian Automotive Association

Show Manager               : Trade-Link Exhibition Services Sdn Bhd

Exhibition Dates            : 23 November – 02 December 2018

Venue                                     : Malaysia International Trade & Exhibition Centre

Website                         : www.klims.com.my

Social Media                           : Facebook www.facebook.com/klims.com.my

Instagram www.instagram.com/klims.com.my

Twitter www.twitter.com/klims_my

Hashtags                       : #KLIMS2018 #BeyondMobility

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