KUALA LUMPUR: The Malaysian Automotive Association (MAA) has forecast the 2020 total industry volume (TIV) to be at 607,000 units, up 0.5% from the 604,287 recorded in 2019.
Its president, Datuk Aishah Ahmad, said today that this year, passenger and commercial vehicles are expected to record sales of 552,000 and 55,000 units respectively.
“We foresee that 2020 will be another challenging year. Despite some progress in the recent trade deal between the US and China, and a resolution of the Brexit impasse within sight, many analysts believe the worries over the trade war and geopolitical risks are likely to remain in 2020.
“The persistent weak ringgit will also continue to affect business confidence, consumer sentiments as well as car prices,” she told a media briefing on the MAA 2019 market review and 2020 outlook here.
Aishah said that high household debts and rising cost of living would also impact consumers’ disposable incomes, which in turn will affect loan applications, especially from buyers in the lower income group.
However, she said the continuation of certain mega infrastructure and development projects such as the East Coast Rail Link and Bandar Malaysia will help spur local economic growth.
“The recent rebound in the prices of commodities such as oil and crude palm oil will also bolster the country’s economic growth.
“Meanwhile, the introduction of new models with the latest specifications and design styles at very competitive prices can help sustain buying interest,” she added.
In 2019, Aishah said, the TIV was 1.0% more than the 598,598 units in 2018.
Sales of passenger vehicles rose 3.0% last year to 550,179 units from 533,099 units previously, while commercial vehicles sales declined 17.4% to 54,108 units from 65,499 units earlier.
Aishah attributed the decline in commercial vehicle sales to the economic slowdown, as companies cut back on capital expenditures.
Meanwhile, pick-up trucks continued to dominate the commercial vehicle segment, accounting for 64.9% of total sales in 2019, with 35,121 units delivered.
According to MAA, the sale of hybrid vehicles went down by 37% to 13,049 units in 2019 from 20,744 previously, while electric vehicles rose to 32 units compared to two units previously. – Jan 22, 2020, Bernama
