THE year 2012 is expected to be an eventful period for the local automotive industry. The following are just a few questions to consider over the months to come.
Industry players and analysts have forecast a modest growth for vehicle sales in Malaysia this year, with the Malaysian Automotive Association expecting it to hit 615,000, which is a 2.5 per cent increase from the 600,123 units achieved in 2011.
For now, analysts and industry players believe that economic indicators such as interest rates and fuel prices will have a limited impact on vehicle sales this year.
"OPR (overnight policy rate) is likely to stay at three per cent to 3.25 per cent (and have) minimal impact," according to research from Frost & Sullivan. It also said that fuel prices were expected to remain range bound, with minimal impact on total industry volume.
An analyst with a local bank-backed brokerage said vehicle sales could be impacted if there was a sudden surge in fuel prices.
"But even if that happened, people will likely downgrade to cheaper or more fuel-efficient cars, as vehicles are a necessity," he said.
Barring any unforeseen circumstances, the general consensus is that vehicle sales will surpass 2010's all-time high of 605,156 units.
It is important to note that 2011 was set to be a record-breaking year for car sales in Malaysia, despite positive economic indicators during the year.
Vehicle sales were instead affected by production disruptions caused by the March earthquake in Japan and the floods in Thailand towards the end of 2011. The Star/ANN
Tuesday, February 7, 2012
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