CAR SELLERS SEE A DECEMBER FILLIP TAKING THEM PASS 2016 FIGURES
New models, rising competition to help accelerate TIV to 590,000 units, says MAA
CAR distributors are firing on all cylinders and set to end the year on a high note, after a poor 2016 saw the industry’s first decline in six years.
Malaysian Automotive Association (MAA) president Datuk Aishah Ahmad said there were more new models and industry players were more competitive in capturing a bigger market share.
“December always has the highest sales of between 50,000 and 60,000 units. Carmakers also give more incentives to get higher sales volume,” Aishah told NST Business.
MAA expects a 1.7 per cent growth in total industry volume (TIV) to 590,000 units this year, comprising 522,000 passenger vehicles and 68,000 commercial vehicles. Last year, a total of 580,124 vehicles were sold.
In the January-November period, TIV stood at 521,907 units, 1.3 per cent better than in the same period last year.
Aishah said sales had dropped 13 per cent last year from a record high of 666,674 units in 2015.
Based on MAA data, the TIV was 605,156 units in 2010, 600,123 units (2011), 627,753 units (2012), 655,793 units (2013), 666,465 units (2014), 666,674 units (2015) and 580,124 units (2016).
Mazda vehicles and spare parts distributor Bermaz Auto Bhd (BAuto) is optimistic that the TIV will be around 590,000 units this year.
Its chief executive officer, Datuk Seri Ben Yeoh Choon San, said December would be a tough month without vast promotions.
“Most consumers prefer their vehicles to be registered early next year.
“Consumers still have the perception that if they register in the new year, the residual value would be much better.”
He said the residual value should be based on the length of the ownership of the car and not the registration date.
Yeoh said some principals or franchise distributors would do more pre-registration towards the year-end, giving huge discounts to customers.
“There are a few carmakers who do this annually.”
On the sector’s prospects next year, Yeoh said consumer confidence and perception would play a major role in determining the market.
“With the ringgit strengthening and the recovery of global oil and commodity prices, the domestic economic environment will be slightly better. “Hence, this gives confidence to consumers to change vehicles.”
Yeoh said BAuto was on track to achieve its sales target of about 10,000 units this year.
Still, this would be a slight contraction from what it had sold last year.
“The (expected) slight contraction is due to ageing models like the Mazda CX-5 sport utility vehicle (SUV). However, we launched the new generation CX5 in October. Since then, sales have picked up,” he added.
As of last month, the company sold more than 9,000 vehicles, including the Mazda2, Mazda3, Mazda5, Mazda6, Mazda MX5, CX-5, and CX-9.
Mercedes-Benz Malaysia Sdn Bhd (MBM) sales and marketing of passenger cars vice-president Mark Raine said the German marque was upbeat on recording another good year.
“Overall, we are set to achieve all our targets. In general, our target is to outgrow our previous sales results.”
Last year, MBM’s sales increased nine per cent to 11,779 units from 10,845 units in 2015.
“It is our target to retain the market leadership in the premium segment.
“We are going ahead with big
paces in expanding our footprint in the Malaysian market,” he said, adding that MBM had a 2.3 per cent share in the overall TIV.
Raine said MBM had invested more than RM1 billion since its inception in 2003, mainly in an assembly plant in Pekan, Pahang, dealer networks and human capital development.
“We will continue to do so. We believe there is great market potential for the premium brand here.”
He expects the TIV for passenger cars to ease one per cent to 510,000 units this year from 515,000 units last year.
He said the sector was likely to grow between four and five per cent next year, fuelled by better consumer sentiment and economic environment.