Frost & Sullivan's Mobility team forecasts Malaysia's vehicle sales to grow 1.4% in 2019
KUALA LUMPUR, Malaysia, Jan. 16, 2019 /PRNewswire/ -- Frost & Sullivan forecasts Malaysia's vehicle sales to reach approximately 609,700 units in 2019 at a growth rate of 1.4 per cent. The Malaysian economy is expected to continue recording positive growth in 2019, driving consumer confidence throughout the year.
Mr. Vivek Vaidya, Associate Partner and Senior Vice President of Mobility at Frost & Sullivan says the key factors likely to aid growth in the Malaysian Automotive market in 2019 include growth in domestic consumption, growth in private investments, and new model launches.
He added, "There are exciting product launches such as Perodua Aruz and Toyota Yaris that are coming up. Proton X70 launched in Q4 for 2018 is likely to gain momentum, which is likely to contribute to growth in 2019."
"Reduction in public infrastructure expenditure and weak external sector are some of the restraints in 2019 which will need to be overcomed by positive consumer sentiments to stay on the growth path," said Mr. Vaidya.
He continued, "While persistent high household debt will continue to encourage cautious spending, expected wage growth is likely to provide the requisite counterweight."
Vehicle demand in Malaysia went up by 4.2 per cent in 2018 as rising consumer confidence and the three month tax holiday resulted in higher demand for passenger vehicles. Mr. Vaidya added, "Usually, after a tax break period, the volumes shrink in subsequent quarter but in 2018, strong consumer sentiments ensured Q4 volumes matched the last year figures to end the year on a positive note." The commercial vehicles segment also bucked the declining trend by registering an impressive 4.8 per cent growth in 2018
"Higher wages and the tax holiday led to improved consumer sentiment pushing up sales but were negated by restraints like accompanying inflationary pressures and stringent loan approvals," he said.
Passenger vehicles market share by OEMs in 2018
Passenger vehicles sales reached approximately 536,371 units in 2018, backed by strong performance in the passenger vehicles segment and resurgence of the SUV segment. The MPV segment declined despite new model launches. In 2019, this trend is likely to continue as both Proton and Perodua are launching their SUV models.
Perodua continues to lead the passenger vehicle segment with a 41.5 per cent share while Honda claimed second position with a 19.7 per cent market share.
"Perodua continues to be the market leader in the passenger vehicle segment, driven by the high demand for its popular models, Axia and Bezza," said Mr. Vaidya. "Despite losing some market share, Honda is firmly entrenched in no. 2 position for last three years due to strong performance in SUV and passenger car segment."
Commercial vehicles market share by OEMs in 2018
Mr. Vaidya said that commercial vehicle sales increased 4.8 per cent to 64,929 units in 2018.
He added, "Commercial vehicle segment growth was aided by strong performance in the Pick-up as well as truck segments. Transport companies seem to have taken advantage of the tax holiday to modernize their fleets by purchasing new trucks."
Toyota continued to lead the commercial vehicles segment with a commanding share of nearly 33.0 per cent, mainly due to strong sales of Toyota Hilux. With the decrease in market share of less than 1.0 percent, Isuzu remained in second position followed by Ford with 16.6 per cent and 10.5 per cent, respectively.
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SOURCE Frost & Sullivan