Free Report:
The Oil Industry is here to stay: A worldwide assessment of current issues
Free Energy Market Research Reports
Automotive
Batteries & Fuel Cells
Chemical Industry & Markets
Coal
Energy
Maps
Metals
Nuclear
Oil & Gas
Petroleum
Power
Renewables
Custom Research
Energy Events & Conferences
Contact
Terms & Conditions
Privacy
Home >
Malaysia Autos Report Q3 2010
Management Report
Published: June 2010
Pages: 52
Tables: For full details, please email keithw@cmsinfo.com
From: GBP 353.33 Buy Now!
Research from: Business Monitor International
Sector: Automotive
Malaysia is returning to its pre-crisis sales levels after a rally in the latter months of 2009. BMI expects a return to positive annual growth in new vehicle sales in 2010, albeit at a slow pace initially: 1.3% yearon- year (y-o-y) in 2010, before stronger growth in 2011-2014. Long-term expectations are high for the small car segment, as the Malaysian Automotive Association (MAA) envisages a shift towards more fuelefficient cars. Total vehicle sales for Q110 were up 22% y-o-y, although as with most countries, BMI warns that this is compared with a low base when the economic crisis was in full swing. We expect more stable growth to be achieved in the latter months of the year when sales can be compared with a point when the market was starting its recovery.
Malaysia is returning to its pre-crisis sales levels after a rally in the latter months of 2009. BMI expects a return to positive annual growth in new vehicle sales in 2010, albeit at a slow pace initially: 1.3% yearon- year (y-o-y) in 2010, before stronger growth in 2011-2014. Long-term expectations are high for the small car segment, as the Malaysian Automotive Association (MAA) envisages a shift towards more fuelefficient cars. Total vehicle sales for Q110 were up 22% y-o-y, although as with most countries, BMI warns that this is compared with a low base when the economic crisis was in full swing. We expect more stable growth to be achieved in the latter months of the year when sales can be compared with a point when the market was starting its recovery.
Production for the year fell 7.8%, to 489,269 units, but with sales expected to improve this year and new production projects in the pipeline, this should be corrected in 2010. This year will also be the first under the new National Automotive Policy (NAP), which came into force on January 1. The NAP includes 18 new policies and measures in total, of which one of the major points is an attempt to streamline the domestic industry to two national high-volume carmakers, in order to cut back on overcapacity and rationalise product ranges. The government is also looking to put more focus on increasing the number of local Tier 1 automotive component makers, that have the quality to export.
Such measures could help Malaysia rise from ninth position in BMI's Business Environment Ratings for the auto sector in Asia Pacific with a rating of 52.6 from a possible 100, with room for improvement in terms of the country's regulatory environment. While the country is a leading light of the ASEAN trade bloc, which has made it a popular choice for regional production activities in the auto sector, there is the potential for greater things if a proposed free trade agreement with the US is finalised. In terms of the market itself, production growth potential receives an average rating, while potential sales growth is low in comparison with its peers.
BMI sees Malaysia's premium car segment as an area for growth after a relatively stable year in 2009, despite the economic crisis. BMW Malaysia intends to achieve better sales and market share in 2010, compared with 2009. Meanwhile, DRB-Hicom subsidiary Euromobil is targeting higher sales of the Audi brand in Malaysia. Datuk Nik Hamdan Nik Hassan, automotive division director for DBRHicom group, said the company attained full dealership status for the luxury brand in February 2010. Euromobil has been set a sales target of at least 700 units of various Audi models in 2010.
Production for the year fell 7.8%, to 489,269 units, but with sales expected to improve this year and new production projects in the pipeline, this should be corrected in 2010. This year will also be the first under the new National Automotive Policy (NAP), which came into force on January 1. The NAP includes 18 new policies and measures in total, of which one of the major points is an attempt to streamline the domestic industry to two national high-volume carmakers, in order to cut back on overcapacity and rationalise product ranges. The government is also looking to put more focus on increasing the number of local Tier 1 automotive component makers, that have the quality to export.
Such measures could help Malaysia rise from ninth position in BMI's Business Environment Ratings for the auto sector in Asia Pacific with a rating of 52.6 from a possible 100, with room for improvement in terms of the country's regulatory environment. While the country is a leading light of the ASEAN trade bloc, which has made it a popular choice for regional production activities in the auto sector, there is the potential for greater things if a proposed free trade agreement with the US is finalised. In terms of the market itself, production growth potential receives an average rating, while potential sales growth is low in comparison with its peers.
BMI sees Malaysia's premium car segment as an area for growth after a relatively stable year in 2009, despite the economic crisis. BMW Malaysia intends to achieve better sales and market share in 2010, compared with 2009. Meanwhile, DRB-Hicom subsidiary Euromobil is targeting higher sales of the Audi brand in Malaysia. Datuk Nik Hamdan Nik Hassan, automotive division director for DBRHicom group, said the company attained full dealership status for the luxury brand in February 2010. Euromobil has been set a sales target of at least 700 units of various Audi models in 2010.