Vehicle sales to grow

​The Malaysia Automotive Robotics and IoT Institute (MARii) is confident that total industry volume (TIV) can achieve an average growth of 9% a year over the next decade to hit 1.22 million units in 2030, when the current annual growth rate is barely 2%

The Malaysia Automotive Robotics and IoT Institute (MARii) is confident that total industry volume (TIV) can achieve an average growth of 9% a year over the next decade to hit 1.22 million units in 2030, when the current annual growth rate is barely 2%.

Chief executive officer Datuk Madani Sahari said MARii, which is an agency under the International Trade and Industry Ministry (Miti), had considered various potential factors that could help boost TIV growth over the next 10 years, such as a voluntary end-of-life vehicle (ELV) policy.

“We have factored in many variables and one of that is an ELV mechanism. It does not have to be mandatory. But if we can put such a system in place that can benefit the rakyat, I believe it can spur TIV growth, ” Madani Sahari said at a media briefing on the automotive sector yesterday.

“We have factored in many variables and one of that is an ELV mechanism. It does not have to be mandatory. But if we can put such a system in place that can benefit the rakyat, I believe it can spur TIV growth, ” he said at a media briefing on the automotive sector yesterday.

Madani said MARii was already “crafting” an ELV mechanism but declined to elaborate.

He said having an ELV mechanism in place, especially where there were rebates or some type of benefits, could compel people to part with their older vehicles for energy efficient and electric vehicles.

Under the reviewed National Automotive Policy (NAP) announced in October 2009, the government had introduced mandatory annual inspections as a requirement for road tax renewal for all vehicles aged 15 years or older as a first step towards implementation of a full ELV policy.

However, the policy was scrapped after a week, following backlash from the public.

At the time, it was reported that 2.7 million, or 14.5%, of vehicles on the road were more than 10 years old.

Meanwhile, the 1.2 million TIV projection by 2030 is one of the targets under the recently announced National Automotive Policy (NAP) 2020.

Total vehicle sales finally exceeded 600,000 units in 2019 after failing to surpass that mark for three consecutive years, rising 1% year-on-year to hit 604,287 units.

Back in 2011, it had been projected that TIV would hit one million units by this year.

“That forecast will not be achieved this year because annual growth was initially projected at 3.5% annually; but the local automotive industry only managed to accomplish around 1.2%, ” said Madani.

He acknowledged that there is a school of thought that believes vehicle ownership will drop in the future, as more people resort to public transport or e-hailing services to commute.

“Fewer people might buy cars, but they will still need a platform to travel. But as cars become more sophisticated and more high-tech, they will become more than just vehicles.

“We believe cars will become not just a product, but a service. People will buy autonomous cars that can serve as sleeping ports, as they travel long distances while avoiding the hassle of having to drive long hours. We also see people who will buy cars for business purposes, utilising the cabin area as a type of meeting space.”

Madani said even if people stopped buying cars in the future, vehicles will still be in demand by original equipment manufactures themselves, who will lease them out for people to use.

“But if I can change the asset that value-ad my needs, why would I need to rent when it would be better to buy it myself, ” he said.

Madani was asked if any of the policies under the NAP 2020, or even the third national car project, may end up getting shelved as these were initiatives under a previous government.

“We don’t think so. Our current prime minister was a minister under the previous Cabinet and we believe that the initiatives will carry on.

“As for the third national car project, it is a private initiative and does not involve the government.

“As of right now, there is no indication that anything will be stopped.”

Source: The Star 

Posted on : 04 March 2020
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Last Updated : Saturday 4th July 2020