When contacted by theedgemarkets.com, Malaysian Automotive Association (MAA) president Datuk Aishah Ahmad said it was still too early for the association amend its TIV forecast.
“It [TIV] will be adversely affected but we still can’t change the TIV forecast for 2020 yet,” she said.
The MAA at the beginning of this year had announced that the TIV is anticipated to come in 0.4% higher year-on-year at 607,000 units, from 604,287 units in 2019.
This forecast takes into account consumer spending moderation amid economic uncertainties and tighter access to credit from banks resultant of high household debts.
This year’s forecast includes 552,000 passenger vehicles and 55,000 commercial vehicles.
In a note on April 2, Kenanga Research stated that it would be cutting its 2020 sales target by 6.7% to 560,000 units, from 612,000 units previously.
“We believe that the quantum of TIV decline will not be as severe as 1997-98 Asian financial crisis (-60%), but below the 2007-08 sub-prime crisis (+13%) based on the current state of the Malaysian economy,” the research house noted.
It added that it expects a better second half of the year due to recovering consumer sentiment and a stream of all-new models such as the Proton X50, Perodua D55L/Raizen, Honda City 1.0 Turbo, and Nissan Almera Turbo.
Source: The Edge Markets