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NEWS UPDATES Asean Affairs             14  July 2011

Malaysian auto output drops

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Frost & Sullivan is revising its 2011 total industry volume (TIV) forecast to 615,900 units from 623,000 units estimated previously as a result of supply chain disruptions from the impact of the March 11 Japan earthquake.

Frost & Sullivan partner and head of the automotive and transportation practice for Asia Pacific Kavan Mukhtyar said that TIV for 2011 will be impacted due to production slowdown and delay in key models launches by automakers.

He added that the newly amended Hire Purchase Act is also likely to have an impact on TIV due to the longer lead time to complete the car purchase process.

“Vehicle sales may have been slowed down considerably in the second quarter of 2011 but will likely pick up in early August due to the rush for Perodua Myvi delivery leading to Hari Raya Aidilfitri celebrations and Japanese automakers ramping up production,” Kavan said.

He said that TIV will continue to be aided by launch of key models, adding that the new Perodua Myvi, launched in the middle of June, had received more than 17,000 bookings as of mid-July.

Kavan said that the B-segment (small & compact cars) will continue its growth in 2011, increasing 8 percent year-on-year to 88,700 units, mainly driven by the highly anticipated sales of the new Perodua Myvi.

“The A-segment however, will continue to see a dip and is expected to decline by 8% year-on-year to 64,700 units due to a lack of new models and possible customer migration towards the new Perodua Myvi, he said. Kavan meanwhile said sales in the C-segment (mid-size sedans) are expected to increase 5% year-on-year to 138,800 units while sales in the D segment (premium & large sedans) are likely to increase 10 percent year-on-year to 96,100 units.

Sales for multipurpose vehicles (MPVs) are expected to decline 14 percent year-on-year to 92,600 units from 107,700 units last year, mainly due to the normalizing sales of the Proton Exora and Perodua Alza.

“The decline in MPV sales is expected and normal after the spectacular growth in the segment in 2010,” Kavan said.


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It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

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