Sales of Malaysian automobiles grew by 7.4% in September 2008 due to the launch of new models, but are expected to decline in 2009 due to the global credit crisis.
According to the statement by the Malaysian Automotive Association (MAA), sales of motor vehicles in Malaysia surged in September 2008 to record a growth of 7.4% over August 2008 and 12.8% from September 2007, as per the news published by bernama.
In September 2008, the sales of vehicles rose to 50,729 units, 3,502 units up from August 2008. Also, the sales increased to 429,913 units during January-September 2008 from 358,234 units during the same period in 2007. The first nine months of 2008 registered a total production of 403,707 units, compared to 327,340 units during the first nine months of 2007.
The prime reason that backed the growth in Malaysian auto market is higher orders from the consumers wishing to buy new vehicles accompanied by the launch of latest makes across a larger part of the segments. The good sales displayed by car models like Perodua and Proton supported the overall vehicle sales. Also, the productive steps like the technological enhancements introduced by the Malaysian automobile industry to assist the auto sector helped the market to grow significantly.
However, the rise in motor vehicle sales in September 2008 was somewhat irregular, probably due to the shift of consumers from expensive car models to the reasonable national cars and the rush of customers to purchase their vehicles before the holidays of Hari Raya. Further, the boost in passenger car sales of in September 2008 can be attributed to the improvement in confidence of consumers and their enhanced lifestyles.
It is noteworthy that majority of cars purchased in Malaysia are through mortgage. Thus, the global credit crisis has created trouble for the customers to take credit to buy new cars. Further, the outlook of Malaysian automobile industry for 2009 is changing as global economic recession has started affecting Malaysian economy too.
According to a Research Analyst at RNCOS, “The Malaysian vehicle industry grew in September 2008 due to the launch of new car models. However, in near future, the sales of automobiles are expected to remain low as banks are increasing their interest rates to brace for the low volumes. Also, as a consequence of global economic slowdown, the overall growth trend in the Malaysian automobile sales is expected to slump in coming times.”
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