According the company, encouraging economic outlook, greater employment stability in Malaysia, the impact of the expected interest rate hike and the launch of at least 16 all-new/facelift models this year will create a substantial increase in demand.
The Malaysian Automotive Association (MAA) has yet to announce the exact figure for 2010, but Frost & Sullivan believes the result could hit an high of 598,200 units, up 11.4 percent over 2009’s figure. "The record vehicle sales in 2010 were mainly attributed to the improved economic sentiment and spillover sales from new models launched in 2009," Kavan Mukhtyar, Frost & Sullivan partner and head of the automotive and transport practice for Asia Pacific, said at a media briefing on Malaysian annual automotive industry outlook in Kuala Lumpur.
The market should not get over-saturated when breaching the 600,000-unit mark, thanks to Malaysia’s large proportion of young demographic, 40 percent of which is made up of citizens younger than 22 years old. The hybrid segment, dominated by the Toyota Prius and Honda Insight, should do especially well with the substantial lowering of prices due to the full import and duty exemption on hybrid cars.
"As long as the increase in fuel prices is reasonable, there will be no dramatic impact on vehicle sales. This is more so in a country where public transportation service still has some gaps. Consumers do not really have an option, as they need vehicles as their means of transport," Mukhtyar said.
Google News