KUALA LUMPUR (July 20): The Malaysian Automotive Association (MAA) has revised upwards its car sales forecast for 2023 to 725,000 units, up 11.5% from its initial 650,000 units projected at the start of the year.
MAA president Mohd Shamsor Mohd Zain said the revision was made after car sales or the total industry volume (TIV) showed upward momentum in the first half of 2023 (1H2023), compared to the same period last year.
TIV in 1H2023 rose 10.3% to 366,037 units from 331,746 units in 1H2022. For 2022, MAA recorded sales of 720,658 units, a record high for the local automotive industry.
“The major reason for the higher number [projection] for this year is basically the continuation of higher order books, and this is expected to continue for the rest of the year,” Mohd Shamsor said at the Motor Traders and Manufacturers Performances for 1H2023 briefing on Thursday (July 20).
Indeed, the upward momentum is expected to continue in the next few years, he said, supported by sales from the national carmakers — Proton Holdings Bhd and Perusahaan Otomobil Kedua Sdn Bhd (Perodua). “Our forecast is also [considering] the performance of the national makers. So this is where [the forecast] will actually increase to higher numbers,” he said.
The sales for national carmakers in 1H2023 grew by 19% to 220,702 units compared to 184,745 units in 1H2022, while the sales for non-national makers stood at 105,959 units in 1H2023, down 3% from 109,007 in 1H2022.
The optimism is also supported by the stable economic outlook for 2023, with the local economy projected to expand between 4% and 5%, driven by domestic demand. Improvements in the automotive industry supply chain environment also bodes well for the performance of TIV moving forward, said MAA.
“Bank Negara Malaysia’s (BNM) decision to maintain the overnight policy rate (OPR) at 3% will help [stabilise] the market in terms of finance or loans,” Mohd Shamsor added.
However, the sustainability of the market performance will depend on economic indicators that can shift market buying sentiment.
This includes the possible softening of consumer spending, weighed down by concerns of rising living costs, shrinking disposable income, weakening ringgit against major foreign currencies, and uncertainties about the domestic and global economic environment.
On electric vehicles (EVs), Mohd Shamsor said the EV infrastructure needs to be properly laid out, such as increasing the number of charging stations, before the association can comment or begin strategic planning concerning EVs.
“The EV is the way to go in the future. But, as I said, the infrastructure needs to come in before that,” he said. He also acknowledged that the government is ramping up efforts to have more EV charging stations.
Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz has said the government needs to look into installing more charging stations to expand the country’s EV ecosystem.
Tengku Zafrul, in a video put up on Twitter on the same day, said EV carmaker Tesla has given its commitment to raise the number of superchargers across Malaysia to more than the 10,000 charging stations by 2025 that the government is aiming for.