The car industry has been suffering major setbacks since the implementation of the MCO. What future awaits them after this?

Malaysia’s automotive industry took a hit when the coronavirus pandemic spread to our country. The Movement Control Order (MCO) and Conditional Movement Control Order (CMCO) has meant that the entire country has to stay home and non-essential businesses have been closed, which happens to also includes vehicle showrooms.

The total industry volume (TIV) has fallen to 106,248 units or 25.61% from 143,064 units last year. The Malaysian Automotive Association (MAA) has also lowered their 2020 sales target, from 607,000 units to only 400,000 units.

According to a report by MAA, the sales volume last April was very minimal, which is 99% lower than the same month in 2019. Sales volume in April was also over 99% lower than March 2020.

This is due to all automotive operations stopping until May 12 2020 as the automotive sector was not ranked under essential sectors.

Malaysia Car Sales by The Brand in The First Quarter of 2020

Most car companies recorded lower sales compared with the first quarter of 2019.

  • Perodua saw the sales reduced by 25.85% to 44,977 units. But, their market share only dropped a tenth of a percentage point to 42.3%.
  • Proton saw an unexpected rise in sales when it increases by almost 20% to 21,757 from 18,281 units last year, and its market share has risen from 12.8% to 20.4%.
  • Honda came in third, despite almost half a percent lower compared to last year’s sales and the market shares are 10.4% lower than the year 2019.
  • Toyota also recorded a 24.1% decline with only 10,415 units sold despite its market share rose to 9.8%.
  • Nissan came in fifth place with 2,474 units with the overall sales fell to 46.83% compared with 5,166 units last year.
 Total Sales (units)Total Sales (units) Market Share (%)Market Share (%)
BrandQ1 2019Q1 2020Difference (%)Q1 2020Q1 2019
Perodua449776065925.8542.342.4
Proton217571828119.0120.412.8
Honda111002219049.9810.415.5
Toyota104151372224.19.89.6
Nissan2747516646.832.63.6
Mazda2723331117.762.62.3
Mitsubishi1765227322.351.71.6
BMW1600256537.621.51.8
Isuzu1576190417.231.51.3
Mercedes1342301855.531.32.1
Ford1116159530.0311.1
Hino845135937.820.80.9
Volkswagen803138642.060.81
Hyundai6035980.840.60.4
Subaru38370045.290.40.5
Volvo36743014.650.30.3
Fuso35640812.750.30.3
Kia333132674.890.30.9
Peugeot31440322.080.30.3
Daihatsu19825622.660.20.2
MINI17330543.280.20.2
Lexus16814317.480.20.1
Renault14228750.520.10.2
CAM1308946.070.10.1
UD Trucks847610.530.10.1
Porsche684261.90.10
Volvo Trucks645418.520.10
Sinotruk5213160.3100.1
Total10642814306425.61100100

What to Expect for The Car Industry After The CMCO is Lifted?

MAA President, Datuk Aishah Ahmad told CarSifu The Star, a proposal had been submitted to the government on the measures after MCO for the automotive industry.

“We have submitted a proposal to both MOF (Ministry of Finance) and MITI. Among the measures proposed are easier hire purchase approvals, and lower taxes or duties for at least until the end of this year. We have also requested for the calculation of the open market value (OMV) of a vehicle to be reverted to the previous formula so that the duties imposed for locally assembled cars do not increase,” she told CarSifu.

She added that the total industry volume (TIV) will drop but this will depend on when the MCO is lifted, and if the government will provide packages to stimulate the car industry.

Federation of Motor and Credit Companies Association of Malaysia (FMCCAM) president, Datuk Tony Khor told The Star, the used car market expected to rose because the economic downside will result in people being cautious and buying more used cars because they are cheaper.

“As nobody knows how long it will take for the economy to recover, many people who are looking to buy a vehicle will likely resort to a used one, as they’re more economical,” he told The Star.

Overall

Malaysia’s automotive industry will need a huge boost from the government in order to rise again. But, we can expect sales to drop significantly due to people losing jobs and source of income, thus preventing them to spend on personal transport. But, with hire purchase moratorium from government and banking institutions, the industry can expect a slight increase in their sales but it will take longer for the consumer to regain their buying power.

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