Malaysia vehicle industry volume to rise

Malaysia's total industry volume (TIV) is expected to increase by 1.2
per cent to 612,000 units this year from an estimated 605,000 units last
year despite uncertain global economic outlook,limited new mass market
models and concerns on loan approval.

Frost and Sullivan partner
and head of the automotive and transportation practice, Asia-Pacific,
Kavan Mukhtyar, said TIV in 2012 would be driven by the C-segment (small
family car) and D-segment (large family car) while hybrid would
continue on a high-growth path amid the extended duty exemption.

"The
sales of hybrid vehicles will increase to 60.9 per cent this year as
the price gap between the car and petrol vehicles is narrowing," he told
a media briefing on Malaysia's 2012 car industry here today.

Kavan
said the B-segment (sub-compact) will grow by 23 per cent year-on-year
to 35,000 units following the launch of new key models such as Toyota
Camry, Kia Optima, Volvo V60 and BMW M5.

He said the growth of
the B- and A-segment was expected to be less aggressive this year due to
stringent loans and credit controls which would affect the purchase of
entry-level vehicles.

"The sales in B-segment will experience a
slight growth of 2.2 per cent year-on-year to 98,800 units fuelled by
the Perodua Myvi, Suzuki, and Ford Fiesta.

"The A-segment will
continue to shrink this year as there are only limited models offered
and the increasing trend of first-time buyers opting straight for B- and
C-segment models," he said.

Kavan said sales in the C-segment
were expected to increase by 3.8 per cent year-on-year to 238,300 units
in 2012 with the new launches by Proton, Hyundai and Honda.

On
multi-purpose vehicles, Kavan said, demand would slip to 10.1 per cent
to 83,100 units, while sports utility vehicles were likely to grow 11
per cent to 26,900 units. -- Bernama