Moderate growth prospects in the automotive sector
Cheah Chor Sooi | 08 Feb 2019 00:30
A flattish growth prospect is anticipated for the Malaysian automotive sector in 2019 although total industry volume (TIV) chalked up a 3.8% growth in 2018, putting an end to two consecutive years of decline.
Last year recorded sales of 598,714 units (2017: 576,625 units), of which passenger cars made up 533,202 units (89%) with the balance comprising commercial vehicles (65,512 units), according to the Malaysian Automotive Association (MAA).
This is given the high base effect stemming from frontloaded purchases during the Goods and Services Tax zerorisation period (prior to the implementation of the Sales and Service Tax) in June - August 2018, moderating consumer sentiments as well as a weakened outlook for the ringgit, according to HLIB Research analyst Daniel Wong.
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