2011 auto sales forecast revised downward

The Malaysian Automotive Association (MAA) has revised downward, its industry sales forecast for this year to 608,000 units, from an earlier estimate of 618,000.

"This is due to the interruption in supply following the earthquake and tsunami disasters in Japan and amendments to the Hire Purchase Act 1967," said MAA president, Datuk Aishah Ahmad in announcing the market review for the first half of 2011 today.

Last year, the total industry sales, was at 605,156 units.

The total industry volume (TIV) of new motor vehicles for the first six months of 2011 was 297,203 units against the 301,115 units registered in the same period last year.

Also, during the first half of this year, the commercial vehicles category registered an increase 2,337 units while that for passengers, showed a drop of 6,249 units.

Aishah said the drop in TIV during the first half of 2011, was largely caused by the passenger vehicles category.

She said the drop in TIV happened during the second quarter, which saw it decline by 12.4 per cent compared to the first.

"The decline in TIV was due to the delay in the delivery of new vehicles as a result of the disruption in production following the earthquake and tsunami disasters in Japan.

"The amendments to the HP Act has also caused a slowdown in new vehicle registration during the second quarter," she added.

On the amendments to the HP Act, Aishah said the MAA is optimistic the government will revise it again.

"The Ministry of Domestic Trade, Cooperatives and Consumer Affairs will hold a meeting on July 22. Based on the number of issues hindering it now, I think the Ministry is acceptable to amending some of the clauses in the HP Act," she
added. --Bernama