PETALING JAYA: The Malaysian Automotive Association (MAA) has revised downwards its 2020 total industry volume (TIV) forecast to 400,000 units from 607,000 units previously due to negative implications of the Covid-19 pandemic which has severely affected business operations.
MAA president Datuk Aishah Ahmad said the movement control order (MCO), which was implemented on March 18, had severely impacted car sales and consumer sentiment.
The 400,000 units forecast would represent a 34% contraction from 2019’s 604,287 units. It also marks the first time in 13 years since the TIV failed to surpass the 500,000-unit mark.
Meanwhile, MAA announced yesterday that total vehicle sales plunged 60% year-on-year to 22,478 units last month, which was largely in line with analysts’ expectations
An analyst from a local bank-backed brokerage expected sales to fall between 40% and 60% in March, after the MCO took effect during the middle of the month to tackle the Covid-19 pandemic.
“Sales of some players were already impacted even before the MCO was implemented as the Covid-19 pandemic was affecting sentiment.”MIDF Research, in a recent report, said preliminary indications suggested a 47% to 63% year-on-year fall in sales volume of major players in March 2020, based on preliminary numbers from the national cars and selective non-nationals.
“Sequentially, the contraction in March TIV for these selective players is estimated to be in the range of 30% to 67% month-on-month, ” it said.On the performance for March, the MAA said sales had dropped 60% and 44% year-on-year and month-on-month respectively.
“Businesses stopped from March 18 onwards following the implementation of first phase of the MCO, ” it said in a statement yesterday, adding that no sales would be recorded for April, due to the MCO.
Year-to-date March 2020, sales fell 26% to 106,428 units from 143,036 units in the previous corresponding period, said the MAA.
The MCO has been extended to a fourth phase until May 12.
Some companies, with the approval of the International Trade and Industry Ministry, have gradually commenced operations under the MCO.
Honda Malaysia said its after-sales services have been allowed to begin operations, albeit with stringent, precautionary measures in place.It said that its after-sales services at selected dealerships are available by appointment only, emphasising that walk-ins are still not allowed.
“Dealer showroom, sales office and manufacturing plant will remain closed.
“The company emphasises that it is taking all necessary precautions at its dealerships nationwide to protect the safety and well-being of its valued customers and Honda associates.”
Mitsubishi Motors Malaysia, in statement yesterday, also said it would be resuming operations at selected service centres nationwide immediately.
The company is observing several precautionary measures, such as by appointments only, contactless car acceptance, pick-up and drop-off only as customers are not allowed to wait at the service premises, temperature checks and the use of masks for all customers and employees. It would also place hand sanitisers at the entrance of its service centres and vehicles to be sanitised before being delivered to its customers.
Among other automotive firms that have resumed operations are Subaru, Hyundai, Toyota and Hyundai.
Earlier this month, StarBiz reported that the ongoing Covid-19 pandemic is forcing local automotive firms to revise their marketing strategies, with some either postponing their new model launches or resorting to unique methods to push sales and remain sustainable during this challenging environment.
Among the companies that have reportedly delayed the introduction of new vehicle models are Subaru and Honda, which have postponed the launch of the new Subaru Forestor GT and Honda BR-V facelift respectively.
Some car companies have also announced plans of finding ways to launch their cars via social media platforms, such as Youtube.
MIDF Research, in a recent report, said it is slashing its TIV projection by 16.5% to 504,850 units for 2020, adding that automotive sector earnings are expected to fall 51% year-on-year.
“In a worst-case scenario that the MCO is extended further to Phase 5 (till end-May), we would expect TIV to dip below 500,000 units, ” it said.
In a previous report, MIDF Research said it did not rule out pent-up demand returning post Covid-19 to drive some form of demand recovery.
This can be seen in the case of China, where, a recovery in China’s car market is slowly gathering pace, with dealerships even in the initial virus epicentre of Wuhan seeing customers return.
However, given the extended MCO and its negative implications on business and sentiment, MIDF Research said any pent-up demand that existed previously would have probably withered away by now.
Among other automotive firms that have resumed operations are Subaru, Hyundai, Toyota and Hyundai.
Earlier this month, StarBiz reported that the Covid-19 pandemic is forcing local automotive firms to revise their marketing strategies, with some either postponing their new model launches or resorting to unique methods to push sales and remain sustainable during the challenging environment.
Among the companies that have reportedly delayed the introduction of new vehicle models are Subaru and Honda, which have postponed the launch of the new Subaru Forestor GT and Honda BR-V facelift respectively.
Some car companies have also announced plans to launch their cars via social media platforms.
MIDF Research, in a recent report, said it is slashing its TIV projection by 16.5% to 504,850 units for 2020, adding that automotive sector earnings are expected to fall 51% year-on-year.
“In a worst-case scenario that the MCO is extended further to phase five (till end-May), we would expect TIV to dip below 500,000 units, ” it said.
In a previous report, MIDF Research said it did not rule out pent-up demand returning post Covid-19 to drive some form of demand recovery.
This can be seen in the case of China, where, a recovery in China’s car market is slowly gathering pace, with dealerships even in the initial virus epicentre of Wuhan seeing customers returning.
However, given the extended MCO and its negative implications on business and sentiment, MIDF Research said any pent-up demand that existed previously would have probably withered by now.
Source The Star