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Malaysia Autos Report Q2 2008Published by: Business Monitor International Published: May. 1, 2008 - 34 Pages Table of Contents
AbstractMalaysia’s automotive sector saw a slight decline in new vehicle sales, of just 0.7% year-on-year (y-o-y)in 2007. Although not in itself a turnaround, it was enough to suggest that a recovery in the sector maynot be far away. BMI’s recently published Malaysia Autos Report shows the drop was not as bad asearlier projections, based on a very poor first half to the year, had anticipated. Positive monthly salesgrowth from June onwards, supported by civil service pay rises and economic growth, rescued the yearlytotal, which reached 487,176 units. The Malaysian Automotive Association (MAA) now expects sales togrow by 4.7%, to 510,000 units, in 2008, in line with BMI’s revised forecast of 5% growth, to 511,535units.There was also good news for national manufacturer Proton. Despite failing to win back leadership of themarket from local rival Perodua in 2007, the company returned to profit in the third quarter of its currentfinancial year, achieving its first quarterly profit in five quarters. For the three months ending December2007, the company booked a net profit of MYR10.329mn, compared with a loss of MYR281.455mn inthe same period of the previous year. Sales also rose, by 51%, to MYR1.454bn. In the absence of aninternational strategic partner, Proton has moved into other Asian markets including China and Indonesia,which should lead to an increase in overseas sales. In BMI’s new Business Environment Ratings for the regional automotive industry, Malaysia ranks ninthwith a rating of 50.3 from a possible 100, although there is room for improvement in terms of thecountry’s regulatory environment. While the country is a leading light of the ASEAN trade bloc, whichhas made it a popular choice for regional production activities in the autos sector, there is the potential forgreater things if a proposed free trade agreement with the US is finalised. In terms of the market itself,however, production growth potential receives an average rating, while potential sales growth is low incomparison with its peers. Although the two leading national carmakers continue to control more than 63% of the market, both arelosing out to imported brands. Proton saw its market share drop to 26.6%, while Perodua saw its share fallto 36.6%. BMI expects international brands to grow in significance, particularly following the signing ofa joint venture between DRB-Hicom and General Motors. Another threat to the domestic manufacturersis Toyota, which claimed around 18% of sales. The Japanese firm should also receive a boost from itsLexus premium brand, which is targeting 50% growth in 2008. Get Full Details About This Report >> |
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