After the drop at the start of the year, sales for almost all brands picked up again in February, even though this is the shortest month of the year and typically sees low sales. However, with the urgency to deliver vehicles to those customers who had booked prior to the June 30 2022 deadline for sales tax exemption, many companies rushed to get vehicles registered.
Data source: Monthly reports of Malaysian Automotive Association.
Among the non-Malaysian makes, Toyota has again gotten off to strong start as an indication of its determination to retain the lead in the segment. However, Honda will be putting in a strong challenge this year as it has announced that there will be three all-new models, one of which is known to be the WR-V compact SUV. This takes the brand into Perodua and Proton territory as it will be a rival for the Ativa as well as the X50.
The erratic production volumes reflect the disruptions caused by shortage of parts, especially microprocessors which are needed for the many electronic systems in today’s vehicles. Just one microprocessor not available and the vehicle cannot be completed. Some manufacturers have even taken to sending vehicles out with some features omitted due to the systems lacking the necessary microprocessor. However, some stability is beginning and the plants are able to push out more vehicles.
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March should see higher numbers as well since it is the final month for deliveries of those long outstanding orders. It’s also usually a strong month because it is the end of the financial year for some car companies, so there is maximum effort to close their books with the best numbers of the year. And there are also promotions for the Hari Raya festive season to attract buyers.
It’s pretty much expected that when the official numbers for 2022 are announced by the Malaysian Automotive Association (MAA) in the near future, Perodua will again be at the top of the list. It has been the bestselling brand since 2006 and its volumes have grown steadily over the years.
Last year, the increase in sales was 48.2% over the year before, taking the total volume to 282,019 units. To meet the demand, production naturally had to rise in tandem and 289,054 units were delivered by the two factories, an increase of 49.5%.
Being No.1 for so long has not made the Malaysian carmaker complacent; in fact, it has never taken its leadership position for granted and has planned its progress carefully and thoughtfully. This was particularly important to face the challenges of the past two years during the COVID-19 pandemic as well as other issues affecting the industry.
Source: Monthly reports of Malaysian Automotive Association Note: BMW, Mercedes-Benz and MINI data is only provided quarterly so the cumulative volumes shown are only for January to September 2022.
Data source: Monthly reports of Malaysian Automotive Association
Going into the final quarter of 2022, the Total Industry Volume (TIV) of new vehicle deliveries for the month of October was 10% lower than the month before but still above the 60,000 level. 61,002 units of vehicles were delivered nationwide, compared to 67,698 units in September.
The 61,002 units were made up of 54,498 units of passenger cars (excluding pick-up trucks) and 6,504 units of commercial vehicles, including pick-up trucks.
Having enough vehicles to deliver has been an ongoing problem for some time, due to the difficulty in completing vehicles as critical parts like microprocessors are in short supply globally. There is some progress in increasing output and at Proton, the effort has paid off with the carmaker able to deliver a record number of its X50 SUV in July.
And not only was it a new monthly sales volume record for the model but from their market intelligence, Proton also found that the 4,763 units of X50 delivered nationwide was the highest number for any model in the market. It’s been a long time since Proton could enjoy such an achievement and reflects the increasing output of vehicles from its factory in Tg. Malim, Perak.
Proton factory in Tg. Malim, Perak.
The record number of units also strengthens Proton’s position as the leader in the hotly contested SUV segment and is also the first time such a vehicle has led the overall market in volume.
The X50 accounted for 41.5% of the total Proton registrations for the month – 11,477 units (domestic + export). The cumulative volume for 7 months has reached 71,601 units, an increase of 19.7% over the same period in 2021.
Proton had a 22.7% market share in July, based on its estimation of the Total Industry Volume for the month being 50,500 units. Its cumulative volume from January to July would likely see its market share going up to 18.7%.
Proton X70
Besides the impressive performance of the X50 in July, the X70 also sees continued strong sales. With the updated model launched in early June, interest has grown and 1,704 units were registered in July. This allowed it to retain sales leadership for C-segment SUVs, contributing to Proton’s cumulative SUV volume in 2022 going past 31,500 units.
Strong performances by other models The rejuvenated Proton also continues to record strong numbers, with 4,521 units registered in July and bringing total volume for the year to 28,005 units. The figures also indicate the 2022 model, launched on May 12, achieved 9,811 registrations in just 80 days.
The Exora MPV also retained its long-standing leadership position with 476 units registered. However, due to approval delays in July, the Persona and Iriz numbers were not their usual high as registrations had to be temporarily suspended.
“Following a hectic June where automotive industry players scrambled to lock in bookings before the end of sales tax incentives, July was a month of consolidation where market demand fell to normal levels, and everybody concentrated on fulfilling orders already received. Proton was no exception and with our parts supply situation continuing to improve, we were finally able to show the true sales potential of the Proton X50,” said Roslan Abdullah, Deputy CEO of Proton.
“The company is immensely proud of the model becoming the first SUV to be crowned as the best-selling vehicle in Malaysia and we are thankful for the support from our customers. This achievement and Proton’s sales leadership in other segments shows our business plan is on the right track and repays the confidence placed in the brand by buyers, investors and other stakeholders,” he said.
“The easing of restrictions in global trade has been a major boost for Proton’s export division. With 5 months to go, we are on target for yet another year of double-digit percentage growth, though our enthusiasm is couched by economic issues faced in overseas markets,” said Encik Roslan Abdullah.
Proton Commerce Sdn Bhd Proton’s financing subsidiary, Proton Commerce Sdn Bhd, has announced it will honour all Letters of Understanding (LOU) at the stated interest rate even if they were issued prior to recent interest rate hikes. Terms and conditions apply, and funds must be disbursed by December 31, 2022, but it ensures customers who already have an LOU from Proton Commerce and are awaiting their orders do not have worry about being charged a higher rate for financing.
“We are working to ensure that despite recent interest rate hikes, our customers will still be able to afford the vehicles they ordered. It’s vital to ensure we convert as many bookings as possible into transacted sales as this will help drive registrations as we continue to strive for more future success,” said Encik Roslan Abdullah.
While 2021 was a difficult year for the car companies, 2022 has seen significant increase in volumes in spite of the ongoing supply shortage of certain parts, limiting output from the plants. According to the Malaysian Automotive Association, which has been compiling industry data since 1967, the Total Industry Volume (TIV) in the first six months of 2022 was 331,386 units, an increase of 82,208 units or 33%.
This big increase is attributed to the pent-up demand for new vehicles but it has also to be noted that the TIV for the same period in 2021 was low due to the restrictions of the Movement Control Order (FMCO) in June 2021. As can be seen in the chart, the strict restrictions saw a sharp drop in sales.
Total Industry Volumes – 2022 vs 2021. All charts provided by Malaysian Automotive Association.
Following the government’s decision of not extending sales tax exemption incentive for passenger vehicles (under the PEMERKASA+ package) after June 30, 2022, bookings surged as those who wanted to beat the deadline rushed to place bookings for new vehicles. Although they would not get their vehicles before the deadline, the government has allowed the exemption to be allowed provided the new vehicles are registered by March 31, 2023.
TIV (Total Industry Volume) of new vehicles by month.
This pushed the June TIV to 63,366 units, an exceptionally high volume as companies rushed whatever stocks they had to customers. The figure could have been higher, had there not bee the shortage of vehicles due to the shortages of chips and components which affected certain makes.
The top 5 brands
The top 5 brands retained their 2021 ranks, with Perodua still leading. While volumes rose, the markets shares of Perodua and Proton decreased, but the market shares of the non-national makes rose.
Higher output from factories
Total production volume in the first half of 2022 also increased likewise by 31.8% to reach a total of 317,933 units compared to 241,288 units in the same period last year. The much higher total production volume seen this year was because there was a total lockdown enforced by the government in June 2021 which shut down factory operations. In addition, the higher output was also in response to the high demand.
Production volumes for first half of 2022 and 2021.
Forecast revised upwards
For the whole of 2022, the MAA has raised its forecast to 630,000 units in view of the strong and positive market trend. This is 30,000 units more than the original forecast announced at the beginning of the year. This means that during the second half of the year, monthly saves will have to be at least 49,760 units.
Revised forecast for 2022. *: Original forecast was announced in January 2022.
In revising its forecast, the MAA has taken various economic and environmental factors into account as well as drawn on input from its members. The association expects the country’s economic recovery to maintain its momentum and the Finance Ministry is maintaining its official GDP forecast of 5.3% to 6.3% for 2022.
However, there are still some factors that can slow the economic growth, such as geopolitical tensions, escalating oil prices, inflationary concerns, and increases in food prices. These may also make consumers hesitate in making purchases, while business in the auto industry may faced increased logistics and shipping costs and experience supply chain disruptions. Bank Negara Malaysia’s recent decision to increase the Overnight Policy Rate (OPR) by 25 basis points to 2.25% may also dampen consumer confidence.
Looking ahead till 2026…. assuming that there are no major disruptions in Malaysia or globally.
Sales figures in other ASEAN markets from January to May 2022. The data for electric vehicles is based on officially reported numbers by members of the respective automotive associations in each country.
UMW Toyota Motor (UMWT) had a significant jump of 32% in its March sales volume with 8,487 units reported, compared to 6,432 units the month before. The improvement in sales is attributed to promotions during the month which offered value-added benefits worth RM4,000 for popular models such as the Vios and Yaris.
Although conditions were challenging with the floods in Selangor causing some parts suppliers to temporarily stop operations, UMWT’s first quarter cumulative sales volume total of 22,447 units was 31% greater than for the same period in 2021 when 17,151 vehicles were sold.
The positive trend is expected to continue through the second quarter, with a boost expected when new and improved models make their appearance later in the year
Circumventing the global challenges on parts supply shortage, Ravindran K., President of UMW Toyota Motor, said: “We are constantly reviewing and adapting to the changing circumstances and uncertainties. Toyota has always been known for our proficiency in supply chain management and risk mitigation measures. Leveraging on these experiences, we are working closely with our suppliers and monitoring the developments closely to ensure minimal impact to our production and our customers.”
“As Malaysia transitions towards the endemic phase, UMW Toyota Motor is appreciative of the support we have received from our customers throughout these unprecedented times. We remain committed towards achieving continuous growth for the Toyota brand as well as for the local automotive industry through our cutting-edge innovative product and solution offerings. As we transform towards sustainable mobility, Toyota aims to leave no one behind as we continue to be at the forefront in offering value for money innovations equipped with technological advancements and state-of-the-art safety features across all our products,” he added.
Promotions for Hari Raya festive season
Until May 1, 2022, UMWT will be running the ‘Pandu Uji dan Menang Duit Raya’ contest at showrooms nationwide. During this period, those who test drive any Toyota model could collect ‘duit raya’. Each test drive will entitle the customer to a contest entry to win ‘duit raya’ worth RM100. Those who take the test drive and complete a vehicle purchase can win RM200 ‘duit raya’. A total of 30 winners will be selected every week.
In addition, all Toyota showrooms will continue their ‘Bersama Lebih Bermakna’ celebrations with the Ramadan Weekender on April 16 and 17. Customers can visit the showrooms to find out more about ‘Bulan Puasa’ deals and value-added offers as well as receive exclusive gifts (while stocks last) when they test drive any of the Toyota vehicles available.
New 3S centre in Cyberjaya
Toyota owners in Cyberjaya now have an authorised service centre close to them. Operated by Otomobil Sejahtera Sdn Bhd, the new facility is a 3S centre offering sales, service and spare parts as well as Body and Paint services for repairs or repainting vehicles.
“From the point of purchase, to aftersales service, and on to their next repurchase, it is important that customers feel the Toyota touch at every step. This new 3S service centre is just our way of bringing our brand closer to our customers, wherever they may be, while ensuring they have seamless access to our services whenever they need them,” Mr. Ravindran said.
For more information about Toyota vehicles or to locate an authorised dealership in Malaysia, visit www.toyota.com.my.
In spite of the challenging conditions during the first quarter of 2022, some of which were carried over from the floods of December 2021, Perodua was able to steadily build up its volume again over the three months.
The Malaysian carmaker reports that it ended the quarter with 61,624 vehicles delivered to customers nationwide. This was an increase of 6.4% compared to the same period in 2021.
On a month-on-month comparison, 26,759 vehicles were delivered in March 2022, a 9.5% increase from the 24,433 units reported in March 2021. Its February sales volume was 17,421 units, almost the same as in January, with the two months being unusually low as the carmaker’s production was affected by parts supply issues.
Production data for March 2022 not available at time of publishing.
According to Perodua’s President & CEO, Dato’ Zainal Abidin Ahmad, the impact of COVID-19 and component supply issues are still present. However, the company has been able to work with its suppliers and dealers to lessen their impact.
“Our focus is now to expedite the vehicles delivery to our customers before the sales tax exemption deadline ends on June 30, 2022. That being said, Perodua also echoes the Malaysian Automotive Association’s request to further extend the sales tax exemption as factors such as the global semiconductor supply disruption and COVID-19 cases are still impacting the industry,” he added.
Dato’ Zainal said that the automotive industry, including its local ecosystem, thanks the government for the initiative (in the form of the sales tax exemption) as it was able to keep demand high and sustain the industry throughout the worst of the pandemic.
“Right now, the local automotive ecosystem is starting to recover and an extension in the sales tax exemption is what the industry needs for sustained growth during this recovery period,” he said.
New transmissions at a supplier’s factory in Negeri Sembilan ready for delivery to Perodua’s factory.
“Moving forward, we foresee the second quarter of 2022 to be the highlight for the automotive industry as brands will deliver as many vehicles as they can within that 3-month period. While semiconductor chip supply and COVID-19 would still influence production, we expect that production and registration will continue to improve,” said Dato’ Zainal
He added that the company does not foresee other factors such as the conflict between Russia and Ukraine to have a major impact on the company’s production moving forward. Based on these factors, Perodua is maintaining its 247,000 sales target for 2022.
Having delivered 8,439 BMW passenger vehicles and 978 MINI vehicles, BMW Group Malaysia captured the leading position in the segment last year. Of the number, 16% were electrified, bringing the total number of electrified BMW and MINI vehicles on Malaysian roads today to just over 21,600 units.
“2021 was the year of our electrification-offensive, for us as well as the BMW Group worldwide, and with the amazing response we have received in Malaysia for the all-new BMW i models, we are confident that the Electric Future we envision for Malaysia will soon become reality. We are ready for it and so is Malaysia as we now steer and drive into 2022 fully electrified,” said Hans de Visser, Managing Director of BMW Group Malaysia.
3-Series most popular
The 3-Series accounted for 28% of total BMW deliveries with over 2,400 units in 2021, the most popular model being the 320i Sport. The 2-Series overtook the long-favoured 5-Series for the very first time, with over 1,270 cars delivered to customers. For this model, the 218i Gran Coupe introduced in October 2020 was the bestseller. The 5-Series, which is the second oldest BMW model line assembled in Malaysia, followed closely behind with 1,150 units.
Bestselling BMW model in Malaysia in 2021 was the 3-Series.
Throughout 2021, the BMW X family of Sports Activity Vehicles (SAVs) remained popular, with over 3,200 vehicles delivered. The X1 continued to be the top-seller over 960 units, followed by the electrified X5 which had over 850 units delivered, a 22% increase from the previous year.
More electrified MINIs sold
The MINI brand saw a 5.6% growth in 2021, led again by the MINI Countryman. Over 68% of MINI sales were of this model, the largest in the range. Like the BMW brand, MINI too has seen increased sales in its electric models. In 2021, over 16% of all MINI vehicles delivered were electrified, compared to 2020 where the figure stood at just over 7%.
There is increased interest in electric vehicles, as evident by growing sales of the MINI Electric.
Over 50% of all BMW and MINI vehicle (and also BMW Motorrad motorcycles) delivered last year were financed by BMW Group Financial Services Malaysia. The digitalisation of the customer journey also continued with the expansion of the BMW Engage online financing application to include the BMW Premium Selection brand. Eight out of ten contracts last year were funded digitally, equating to over 4,400 contracts funded via BMW Engage.
Globally, the BMW Group reported 8.4% growth last year, with a total of 2,521,525 BMW, MINI and Rolls-Royce vehicles delivered to customers worldwide. BMW vehicles accounted for 88% of the number and for fully electric models, there was a 133.2% increase (for all brands), which is an indication that electric mobility is catching on and growing each year.
100,000 vehicles assembled locally
BMW Group Malaysia will soon set a new milestone at its assembly plant in Kulim when the 100,000 vehicle assembled (from the time BMW itself was involved in local assembly) rolls out. This eventual milestone affirms the carmaker’s confidence in its continued investments towards building and sustaining Malaysia as a regional automotive hub. With growing interest for electrification in Malaysia, the BMW Group has also introduced more powertrain options for its line-up of locally-assembled models.
The 100,000th vehicle assembled in Malaysia since the BMW Group Malaysia was established will soon roll out from the facility in Kedah. (Below) BMW engines are also assembled in the same area at a separate facility.
With range anxiety and infrastructure being the most pressing issues for customers and automakers alike in advancing electromobility in the country, BMW Group Malaysia says it will continue to accelerate the roll-out of its public charging network nationwide. As of January 2022, there are 77 BMW i Charging facilities across the country, with 25 facilities powered by partnerships with local dealers and industry players. This network is complemented with 16 charging points with Shell Recharge & Park Easy as well as 319 charging facilities with GreenTech Malaysia and its ChargEV platform.
Going beyond selling motor vehicles
“We are going beyond delivering premium vehicles that are the Ultimate Driving Machines, but vehicles that are ultimately responsible for the planet and our future generations. We recognise that the time has come for a shared vision for electrified mobility with a shared responsibility by all stakeholders to act and transform our industries into a responsible ecosystem that is built for the future. For us at BMW Group Malaysia, this is an ecosystem where Future Mobility can truly thrive in. This is the future we envision and with the support of our customers, dealers, associates and the Malaysian government here – we are more than optimistic that this ‘Electric Future’ will be a successful one,” Mr. de Visser said.
BMW Group Malaysia will continue to accelerate the roll-out of its public charging network nationwide.
BMW Group Malaysia was established in the early 2000s to be directly involved in activities that cover the wholesale of BMW, MINI and BMW Motorrad vehicles, including overall planning of sales, marketing and after-sales. Since starting with just a National Sales Centre in Cyberjaya, the organisation has expanded to include assembly facilities in Kedah, the BMW Group Data Centre and BMW Group Regional Training Centre in Cyberjaya, and the BMW Group Parts Distribution Centre at the Free Industrial Zone of the Senai International Airport in Johor.
