News: Malaysia passenger car sales to drop 15.5pc: Synovate

Published: 2009/02/12 by Business Times

PASSENGER car sales in Malaysia is expected to drop by 15.5 per cent this year to 420,000 units from the 497,459 units in 2008, according to Synovate Motoresearch.

Synovate Motoresearch is part of the global market research company, Synovate.

Its vice president Dr Stephen Popiel said the downtrend was due to a higher unemployment rate and the ongoing global financial crisis.

“We cannot dismiss the present economic situation and tough challenges being faced by Malaysian consumers and also manufacturers.
“The ripple effect will continue to have an impact on local demand and consumer confidence,” he said at a media briefing on the outlook for the Malaysian automotive industry in Kuala Lumpur today.

However, he also said that the local automotive market was in a better shape, when compared to developed markets like the United States as Malaysia did not offer cash incentives to buyers.

According to Popiel, Proton and Perodua, are likely to perform well as buyers will consider the local brands during the economic slowdown.

Therefore, he highlighted, the local auto manufacturers must introduce new models or facelifts to stimulate demand while increasing their share in a shrinking market.

He also pointed out that commercial vehicle sales are likely to be stable due to demand by companies. However, the luxury segment,which is historically resilient to recession, is expected to see a downturn in sales.

A survey by Synovate Motoresearch also showed that 47 per cent of Malaysians think that the current state of the economy is weak but believe that it will improve soon.

Also, thirty-one per cent of affluent Malaysians claimed that they would buy a new car within the next 12 months.

Meanwhile, Synovate Motoresearch associate director, Ajay Bangia said the automotive market is looking forward to new models in the Multi-Purpose Vehicle (MPV) segment by local automakers.

“Currently, the MPV segment has a fairly smaller percentage for passenger cars, with 55,000 units having been sold last year. A couple of new introductions will stimulate sales,” he added. — Bernama