KUALA LUMPUR: The Malaysian Automotive Association (MAA) estimates that auto sales will increase 2.5% to 615,000 vehicles this year from 599,877 units last year, underpinned by resilient consumer demand, accommodating borrowing costs and new model launches.
“[The estimate] is also based on the economy expanding at a moderate rate of 4.8% this year,” the association’s president Datuk Aishah Ahmand told a news conference yesterday.
She added that robust intra-regional trade in Asia could mitigate the effects of the current global economic uncertainties, mainly caused by the financial troubles in the eurozone.
Total industry volume (TIV) last year declined 0.9% to 599,877 units from 605,156 a year before, after vehicle production was disrupted by Japan’s tsunami in March and the devastating floods in Thailand in the last quarter of last year, Aishah said.
“As a result of the two natural disasters, sales of new motor vehicles were much lower during the second and fourth quarters of 2011 compared with the corresponding periods in 2010,” she said.
Nonetheless, Aishah said the impact of the two major natural disasters on the automotive supply chain was offset by Malaysia’s fairly strong GDP growth of 5% for 2011.
Commenting on DRB-Hicom Bhd’s takeover of national carmaker Proton Holdings Bhd, she said it is the right move and it is hoped that DRB can improve Proton’s image and technology in the future.
DRB-Hicom has an agreement with Volkswagen AG, which includes contract assembly at its plant in Pekan, Pahang, and the sale of Volkswagen marques as well.
The local conglomerate announced on Monday that it is buying the 42.72% stake in Proton held by sovereign wealth fund Khazanah Nasional Bhd for RM5.50 per share or RM1.29 billion cash.
Proton had a 26.4% market share of car sales in 2011, second only to second national automaker Perusahaan Otomobil Kedua Sdn Bhd (Perodua).
Toyota Motor Corp ranked third in terms of sales with 14.5% market share, while Honda Motor Corp came in fourth with 5.4%, followed by Nissan Motor Co ( 5.4%). Both Nissan and Honda saw their production disrupted by last year’s flooding in Thailand.
This article appeared in The Edge Financial Daily, January 18, 2012.
“[The estimate] is also based on the economy expanding at a moderate rate of 4.8% this year,” the association’s president Datuk Aishah Ahmand told a news conference yesterday.
She added that robust intra-regional trade in Asia could mitigate the effects of the current global economic uncertainties, mainly caused by the financial troubles in the eurozone.
Total industry volume (TIV) last year declined 0.9% to 599,877 units from 605,156 a year before, after vehicle production was disrupted by Japan’s tsunami in March and the devastating floods in Thailand in the last quarter of last year, Aishah said.
“As a result of the two natural disasters, sales of new motor vehicles were much lower during the second and fourth quarters of 2011 compared with the corresponding periods in 2010,” she said.
Nonetheless, Aishah said the impact of the two major natural disasters on the automotive supply chain was offset by Malaysia’s fairly strong GDP growth of 5% for 2011.
Commenting on DRB-Hicom Bhd’s takeover of national carmaker Proton Holdings Bhd, she said it is the right move and it is hoped that DRB can improve Proton’s image and technology in the future.
DRB-Hicom has an agreement with Volkswagen AG, which includes contract assembly at its plant in Pekan, Pahang, and the sale of Volkswagen marques as well.
The local conglomerate announced on Monday that it is buying the 42.72% stake in Proton held by sovereign wealth fund Khazanah Nasional Bhd for RM5.50 per share or RM1.29 billion cash.
Proton had a 26.4% market share of car sales in 2011, second only to second national automaker Perusahaan Otomobil Kedua Sdn Bhd (Perodua).
Toyota Motor Corp ranked third in terms of sales with 14.5% market share, while Honda Motor Corp came in fourth with 5.4%, followed by Nissan Motor Co ( 5.4%). Both Nissan and Honda saw their production disrupted by last year’s flooding in Thailand.
This article appeared in The Edge Financial Daily, January 18, 2012.
