PETALING JAYA: The Malaysian Automotive Association
(MAA) has revised upwards its 2010 total industry volume (TIV)
forecast to 570,000 units from 550,000 units initially due to the
stellar sales performance in the first half of the year.
The TIV in the first half grew 19.8% to 301,077
units compared with 251,305 units in the previous corresponding
The revised forecast, if achieved, means the Malaysian automotive
industry is headed for a record-breaking year in terms of sales,
surpassing its all-time high of 552,316 units in 2005.
MAA president Datuk Aishah Ahmad said the TIV
growth in the second half was unlikely to be as strong as the first
six months, and that the recent fuel price hike and increase in
interest rates would have a minimal impact on the TIV.
She also said the impact on the TIV would be minimal
if any further increase in fuel price and interest rates was marginal.
“A further increase in interest rates is
possible. If the increase is 25 basis points the impact won’t
be much,” she told a briefing yesterday.
“A further increase in fuel prices may
not affect the overall TIV but car buyers may downsize to cheaper
vehicles. “Our fuel prices are still the cheapest in the
region.” Earlier this month, Bank Negara raised the overnight
policy rates by 25 basis points to 2.75%.
Last week, the Government announced the increase
of RON95 petrol price by five sen per litre to RM1.85, while RON97
would no longer be subsidised. The diesel prices rose by five sen
per litre to RM1.75.
The multiplier effects of projects from the 10th
Malaysia Plan would boost the economy and create demand for new
vehicles, Aishah said, adding that the positive consumer sentiment
was expected to continue owing to greater stability in the employment
She said outstanding orders carried over from
the first half would be fulfilled in the second half of 2010.
Aishah also said the MAA had been lobbying the
Government to extend incentives for not only hybrid and electric
vehicles, but also all types of vehicles that cater to this segment.
For the first six months of 2010, total production
volume increased by 27.8% to 293,783 compared with 229,842 units
in the same period last year.
Aishah said the higher production volume was to
cater to the improvement in sales of motor vehicles in the period.
The MAA also reported that motor vehicle sales
for June rose 19.4% to 54,005 units from 45,245 in the same month
last year as business conditions and consumer sentiment continued
to be positive.
It said the sales increase was also due to buyers
rushing to take delivery of their vehicles before the hike in interest
On the outlook for July, MAA said the year-on-year
growth would continue to expand, but the month-on-month volume
would be maintained as outstanding orders had already been fulfilled.