In the latest Automotive sales update for October, MAA (Malaysian Automotive Association) has reported a total industry volume (TIV) decline of 47,879 units from 55,788 units (September). The decline is obviously attributed to the slow take-up of new models introduced by National and Non-national carmakers. TIV for the January to October 2016 was 13.9 per cent lower compared with the corresponding period in 2015.
The passenger category saw a 0.98 percent drop due to the slowing economy. The 0.98 percent drop is based on 49,747 units in 2016, compared to 50,974 in 2015. In the commercial vehicle category, a drop of 0.69 percent is confirmed; 5,357 units from 2015’s 6,691 units.
Sales volume in October was 0.6 % or 312 units lower than September, for the current year. The steep decline is attributed to customers’ wait & see attitude, especially prior to the announcement of this year’s national budget.
From the current bleak perspective, MAA has forecast a slight improvement for the month of November. MAA figures that the year-end promotions and sales campaigns by major car companies are expected to boost customers’ interests and renewed confidence in the final two months of the year.
In related news, the recently announced national budget has been considered timely to assist local automotive component manufacturers to initiate their export readiness programs; according to the Malaysian Automotive Institute (MAI).
A total sum of RM130 million under the budget, governed by Ministry of International Trade and Industry, Malaysia External Trade Development Corporation and Malaysian Investment Development Authority and SME Corp Malaysia, will be offered to eligible companies. The companies, especially SMEs, are expected to gain the benefits from the allocated funds for entrepreneurship, export enhancement and the digital economy.
MAI is set to initiate an Automotive industry development program in the following year to create more job opportunities and new businesses, as well as enhance existing companies under the MAI umbrella. Lastly, MAI intends to develop 5,950 careers within the automotive industry from 2017 onwards.