MAA EXPECTS MOTOR VEHICLE SALES TO BE FLAT MOVING FORWARD

PETALING JAYA (Selangor, Malaysia), Jan 19 (Bernama) -- Motor vehicle sales are
expected to be flat for the next few years after registering impressive growth
last year on the back of improved economic outlook.

Malaysian Automotive Association (MAA) president Datuk Aishah Ahmad said the
industry volume is expected to grow this year by 2.1 per cent or 1,438 units to
618,000 units from 605,156 units last year.

"I must say, bearing in mind that we have a population of 27 million people, and
in terms of motorisation rate we have a ratio of every four person to one car
which is the same as a developed country although we are still a developing
nation.

"Minimal growth is expected to happen for the next few years and I don't think a
double-digit growth like last year will happen.

"The country is already very high in terms of car ownership and the forecast has
taken into account the previous revamp of the repayment period five years ago.

"Finance companies have changed the repayment period from five years to nine
years, and by 2011, consumers will still have four more years of their loan to
pay for their five-year-old vehicle, and we have to take into account the
financial standing of consumers whether they can afford to trade in and get a
new car," she said.

Aishah said the association expects the TIV to grow by one per cent to 624,000
units in 2012, 2013 to grow by 1.1 per cent to 631,000 and subsequently 2014 to
grow by 1.2 per cent to 639,000 units and 2015 with 1.3 per cent growth to
647,000 units.

Last year, the automotive sector recorded 12.7 per cent double-digit growth for
registration of new motor vehicles, clinching an all-time high of 605,156 units,
surpassing the previous record high of 552,316 units achieved in 2005.

"There will be a multiplier effect from the 10th Malaysia Plan and
Economic Transformation Programme's projects which would likely give a further boost
to the domestic economy and create greater demand for new vehicles," she said.

Aishah said positive consumers' sentiments are expected to continue owing to
greater stability in the employment market; introduction of new models to
generate buying interest; and outstanding orders carried forward from last year
would be fulfilled this year.

Meanwhile, Frost & Sullivan, in its annual automotive outlook briefing recently,
had predicted a higher TIV of 623,000 units this year, driven by a moderate
economic outlook and additional new vehicle models which would attract
consumers.
-- BERNAMA