Posted on 29 Jul 2015
The outlook for the second half of 2015 includes the ongoing inflationary pressures, fluctuating foreign exchange rates especially the weakening of the ringgit; subdued business optimism and moderation in consumers' spending and stringent lending practices including those for hire purchase loans.
MAA president Datuk Aishah Ahmad said the TIV of new motor vehicles in the first six months of 2015 fell 3.3% to 322,184 units from 333,156 units a year ago. Except for January and March, the year-on-year vehicle sales trend was consistently lower for the first half of 2015 compared with the same period in 2014.
The lower sales volume registered from April to June were mainly due to weak consumer sentiment following the implementation of the Goods and Services Tax (GST) in April 1.
"From the indication that the industry has, we think that 670,000 is a realistic target," Aishah said after announcing the market review for the first half of 2015 here yesterday.
She said GST has had a definite impact on car purchases, especially those in the middle to lower income group. However, the market is expected to improve during the second half of the year as consumers get used to the GST and return to new spending normalcy.
"We're hoping that the second half of the year will be better than the first half. It will catch up and there will still be a growth of 0.5% (from 2014)," said Aishah.
She added that car companies are also introducing new models with latest additional specifications and design at competitive prices, as well as having ongoing promotional campaigns to sustain buying interest.
Meanwhile, she said the weakening ringgit remains a major concern for car makers, as profits are affected due to the exchange rate as most car companies purchase car parts, components and completely knocked down packs in US dollars.
"Purchases from overseas are getting more expensive but on the other hand, we cannot increase prices," she said, adding that it is the right time for consumers to purchase cars as car companies have not increased the car prices despite increased costs.
MAA also indicated a TIV forecast of 683,400 units for 2016, 697,500 units for 2017, 713,000 units for 2018 and 729,500 units for 2019.
