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MAA revises up car sales forecast

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KUALA LUMPUR: The Malaysian Automotive Association (MAA) remains confident of car sales moving forward despite the recent overnight policy rate (OPR) hikes.

The association had revised its latest forecast total industry volume (TIV) up by 5% to 630,000 units for 2022 from a lower forecast made in January.

“When we check with our members, the the OPR increase is manageable.

“Banks are still depending on the quality of their customers – buyers can still get loans and they are not as stringent as believed,” MAA president Datuk Aishah Ahmad told a press conference.

The revised forecasts also did take into account the recent hikes in the OPR.

In January, it forecast forecast the TIV to grow to 600,000 this year from 508,911 in 2021.

Forecasts for passenger vehicle sales have also been revised upwards and they are now anticipated to grow by 25.3% to 567,000 from a the previous forecast of 540,000.

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“When we check with our members, the the OPR increase is manageable. “Banks are still depending on the quality of their customers – buyers can still get loans and they are not as stringent as believed,” MAA president Datuk Aishah Ahmad told a press conference.

The commercial vehicles segment has seen its figures revised upwards to a growth of 12% to 63,000 from an earlier forecast of 60,000.

The revised forecasts also took into account the other issues that are affecting the automotive industry such as the ongoing continuation of components and chips shortages which could dampen the production of motor vehicles during the year.

The MAA also took into consideration that businesses may hold back investments in view of the ongoing uncertainties at the global level as well as the domestic political scene.

“Many analysts are expecting that the 15th General Election (GE15) will take place within the year,” she said.

Aishah said buying interest moving forward would be sustained by the continued growth in the gross domestic product (GDP) including the fulfillment of backlogged orders arising from the sales and services tax (SST) exemption flexibility that was recently announced.

“There will be continuation of efforts to fulfill backlogged orders and promotional campaigns by car companies to boost sales and maintain their market share,” she said.

“The introduction of new models such as those with latest designs and features as well as electric vehicles at affordable and competitive prices may assist to sustain buying interest moving forward,” Aishah added.

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