Malaysia is returning to its pre-crisis sales levels after a rally in the latter months of 2009. BMI expects a return to positive annual growth in new vehicle sales in 2010, albeit at a slow pace initially: 1.3% yearon- year (y-o-y) in 2010, before stronger growth in 2011-2014. Long-term expectations are high for the small car segment, as the Malaysian Automotive Association (MAA) envisages a shift towards more fuelefficient cars. Total vehicle sales for Q110 were up 22% y-o-y, although as with most countries, BMI warns that this is compared with a low base when the economic crisis was in full swing. We expect more stable growth to be achieved in the latter months of the year when sales can be compared with a point when the market was starting its recovery.
Production for the year fell 7.8%, to 489,269 units, but with sales expected to improve this year and new production projects in the pipeline, this should be corrected in 2010. This year will also be the first under the new National Automotive Policy (NAP), which came into force on January 1. The NAP includes 18 new policies and measures in total, of which one of the major points is an attempt to streamline the domestic industry to two national high-volume carmakers, in order to cut back on overcapacity and rationalise product ranges. The government is also looking to put more focus on increasing the number of local Tier 1 automotive component makers, that have the quality to export.
Such measures could help Malaysia rise from ninth position in BMI's Business Environment Ratings for the auto sector in Asia Pacific with a rating of 52.6 from a possible 100, with room for improvement in terms of the country's regulatory environment. While the country is a leading light of the ASEAN trade bloc, which has made it a popular choice for regional production activities in the auto sector, there is the potential for greater things if a proposed free trade agreement with the US is finalised. In terms of the market itself, production growth potential receives an average rating, while potential sales growth is low in comparison with its peers.
BMI sees Malaysia's premium car segment as an area for growth after a relatively stable year in 2009, despite the economic crisis. BMW Malaysia intends to achieve better sales and market share in 2010, compared with 2009. Meanwhile, DRB-Hicom subsidiary Euromobil is targeting higher sales of the Audi brand in Malaysia. Datuk Nik Hamdan Nik Hassan, automotive division director for DBRHicom group, said the company attained full dealership status for the luxury brand in February 2010. Euromobil has been set a sales target of at least 700 units of various Audi models in 2010.
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Report Table of Contents:
Executive Summary
SWOT Analysis
- Malaysia Autos Industry SWOT
- Malaysia Political SWOT
- Malaysia Economic SWOT
- Malaysia Business Environment SWOT
Asia Pacific Regional Overview
Business Environment Ratings
- Table: Business Environment Ratings -- Autos Industry Asia Pacific
Industry Forecast Scenario
- Production & Sales
- Table: Malaysia Autos Sector - Historical Data And Forecasts
- Trade
- Table: Malaysia Autos Sector - Historical Data And Forecasts
- Economic Contribution
- Table: Malaysia Autos Sector - Historical Data And Forecasts
Macroeconomic Forecast Scenario
- Table: Malaysia - Economic Activity, 2007-2014
Competitive Landscape
- Market Overview
- Malaysian Passenger Vehicle Sales
- Industry Developments
- Company Developments
- Suppliers
Company Monitor
- Geely Strategy Supports BMI View
- Table: South Korea - Imported Luxury Vehicle Sales
Company Profiles
- Proton
- Perodua
- Toyota Motor
- Honda Malaysia
Country Snapshot: Malaysia Demographic Data
- Section 1: Population
- Table: Demographic Indicators, 2005-2030
- Table: Rural/Urban Breakdown, 2005-2030
- Section 2: Education And Healthcare
- Table: Education, 2000-2003
- Table: Vital Statistics, 2005-2030
- Section 3: Labour Market And Spending Power
- Table: Employment Indicators, 2001-2006
- Table: Consumer Expenditure, 2000-2012 (US$)
- Table: Average Annual Manufacturing Wages, 2000-2012
BMI Forecast Modelling
- How We Generate Our Industry Forecasts
- Sources
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