Malaysian Pay the Highest Car Prices in the World
If you shop for a new cars like Toyota Vios, Honda Civic etc, you would immediately notice that we are paying highest car prices in the world due to our abnormally high import duties on foreign cars.
Beside paying for higher price for car, soon we would also pay for higher Petrol price.
By 1st May 2010, Malaysians Not all Malaysians will get to enjoy subsidized petrol as it will follow the engine capacity and other factors such as socio-economy. It another word some Malaysians will pay for Petrol at Market Price.
Read more about Petrol Hike|Two Price Structures for Petrol from May 1
Car has become a necessity and no more a luxury due to the current public transport condition.
There are a lot of proposal improve urban public transport and step done to further encourage the people to use public transportation. But there are still a lot of room of improvement.
Therefore Most people have not much practical choice but to own cars!
As a result, we are face with traffic congestion and horrendous air-pollution.
Some car owners even take a nine-year loan just to pay off for a basic car.
Car also has the highest depreciation value between the first and second year and one of the biggest liability for average wage earner.
Do you know how much Tax you are paying for a foreign Car?
By comparing car price between Malaysian mainland and duty free Island of Langkawi, you can clearly see how much Car Vehicle Taxes the Government is extracting from the car buyer.
Malaysian mainland car buyer paid almost additional 38% compare those at duty free Island of Langkawi.
The Government take about RM23,000.00 in taxes for every imported car that is sold in the country. This would add to billions of ringgit.
Most of this taxes money goes to the Government in the form of taxes and duties and also to pay for the Approved Permits(AP). AP is needed to import these cars.
According to the book “Thing in Common” by Syed Akbar Ali, AP is a Useless Pieces of paper which do not add any value to the car or to the people.
They are just a method of skimming money from the people!
He also wrote these taxes are being imposed to protect outdated national car industry and to benefit a few privileged people who have access to APs to import cars.
Highly protectionist policy in the car industry should be reduce and without competition from freely imported cars, the car prices in Malaysia have rocketed sky high.
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Malaysians are Now Paying Petrol Tax
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Domestic Trade and Consumer Affairs Minister Datuk Shahrir Samad revealed today the government has stopped subsidising petrol since Nov 1 and has been effectively collecting taxes instead on petrol consumption.
Speaking to reporters in Parliament, he explained that even after the 15-sen drop today, which saw RON97 petrol dropping to RM2 per litre, and RON92 and diesel down to RM1.90, the government was no longer subsidising petrol at the pumps.
“Even if prices return to RM1.92, we will still have a bit of surplus,” he said, adding that subsidies had disappeared once the global price of oil had dipped under US$65 per barrel.
Current prices are hovering at US$55 per barrel.
As oil companies take a 19-sen cut and fuel station operators take 12 sen, it can be inferred that the cost price of RON97 petrol is currently below RM1.61 if the government can still generate income at RM1.92.
Shahrir explained that the difference between petrol pump prices and the cost plus commission for the companies and operators was being returned to the government effectively as a form of tax.
This gels with the 2009 Budget winding-up speech by Finance Minister Datuk Seri Najib Razak where he claimed a projected RM7 billion savings in fuel subsidies will be utilised to stimulate the troubled economy.
The statement was puzzling as the government had earlier said it would maintain a 30-sen fuel subsidy to keep pump prices below market prices.
Shahrir also projected that with RM21 billion budgeted for fuel subsidies in 2009 and subsidies for 2007, when prices had averaged US$65 per barrel, amounting to RM8.8 billion, savings from fuel subsidies would be far more than RM7 billion.
“If crude oil stays under US$60 per barrel, I am expecting at least RM10 billion,” he said.
He also added that subsidies for diesel and natural gas are still in place.
Shahrir, however, explained that this did not mean that the people were not being helped by the government.
“We are still giving the RM625 road tax rebate for cars and RM150 for motorbikes that goes straight into your pocket,” he said, referring to the rebate announced when RON97 shot up to RM2.70.
“So the rebate is for when the people suffered for about three months,” he said.
The Johor Baru MP had called a press conference to announce that a total cost of RM21.4 billion had been incurred by the government up to October this year due to tax exemptions and subsidies for fuel against RM16.2 billion last year.
This, however, is without tax exemption figures for October 2008.
He also said that government would consider a floor price for fuel.
from:themalaysianinsider.com/index.php/malaysia/12622-malaysians-are-now-paying-petrol-tax-
Ample time to adjust to AP system
Car manufacturers must strategise to face new chapter in its abolishment
LOCAL car manufacturers have ample time to adjust and strategise on ways to face the new chapter of the national automotive industry with the open market and abolishment of the Approved Permits (AP) system in 2015.
This is the view of economists and research analysts on the government’s decision to do away with the controversial AP system as part of its National Automotive Policy (NAP) review.
Minister of International Trade and Industy Datuk Mustapa Mohamed announced yesterday that the government will scrap the AP system for the import of completely-knocked-down (CKD) vehicles whereby open APs for used vehicles will be terminated by Dec 31, 2015, which means importation of used vehicles using the AP
permit would no longer be allowed after 2015.
“No new applications for open APs will be considered and franchise APs will be terminated by Dec 31, 2020,” he said.
Rating Agency Malaysia’s chief economist Dr Yeah Kim Leng said, “The timeframe appears to be a bit long but it will also be good for local industry players to adapt to the changes coming their way and also buy them some time to strategise before they face the changes.”
He added that local car manufacturers will have to be more competitive and improve their quality to attract more local consumers.
“They will have to be more creative in order to obtain more local consumers in the industry and thus they will have to raise their competitiveness for a long term sustainability,” he said.
Malay Mail also spoke to Amelia Arshad, a senior analyst with Inter Pacific Research who felt that it will be a long wait for consumers and the AP system should have been abolished a long time ago.
“The industry will not be affected, as many of the local manufacturers are engaged in collaboration with other foreign car manufacturing companies,” she said.
The time, she said, is right for the country to move on and make new changes that will not only benefit the industry but also the consumers.
Amelia said that under the new reviewed measure of the NAP there are some good measures such as having an establishment of a gazetted price for imported used CBU motor vehicles.
“This will help to stop the underdeclaration of imported used-cars and abuse of the AP system.” she said.
The government had earlier proposed to end APs by 2010 but the deadline was extended. Under the NAP review announced yesterday, there are 18 new policies and measures covering licencing, duties, incentives, technology and environment, safety and standards and also APs introduced under the NAP review.
New policies and measures will be effective from Jan 1, 2010.
fr:mmail.com.my/content/17323-ample-time-adjust-ap-system
Urban Public Transport Enhanced By 2012
Highlights of the Government Transformation Programme Roadmap towards improving urban public transport:
*Increasing the percentage of overall utilisation of public transport from 10 to 13 per cent in 2010.
*Raising the number of public transport users from 240,000 to 265,000 this year.
*Increasing the accessibility and communication of the overall percentage of the population residing within 400 meters of the public transport route from 63 per cent to 75 per cent.
The government’s main target is to improve the standard of public transport at the main population centres in Malaysia, beginning with increasing the use of public transport during peak hours, that is, from 7am to 9am by 25 per cent in the Klang Valley in 2012, and subsequently in Penang and Johor Baharu.
Efforts to improve urban public transport services would also be emphasised including improving reliability by focusing on punctuality of the services and subsequently reducing journey time.
In addition, the quality of the journey four users of public transport in terms of comfort and convenience would also be enhanced by ensuring that the rakyat get easy access to public transport and providing adequate transportation capacity for existing and new passengers.
Five important measures that have been identified to improve public transportation between 2009 and 2012 were coordination of the capacity of systems which had reached their limit, that is, by raising the capacity of the KTM Komuter and LRT by between 1.7 and four times.
In order to attract more people to use public transportation, the ticket and fare structure for public transport would be integrated and about 6,800 additional parking bays would be provided at 14 major rail stations. Feeder bus services to the rail stations would be improved while stations with high traffic volume would be upgraded.
fr:bernama.com/bernama/v5/newsindex.php?id=471886
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AP for state reps: Miti sec-gen explains
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Explaining about recent government decision to grant Approved Permits (AP) to assemblypersons, Ministry of International Trade and Industry secretary-general Abdul Rahman Mamat denies widespread AP abuse by MPs and vows action against any misuse.
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Costly rides
The cost of owning a car in Japan, is enough to drive one up the wall.
WITH baby Ken in the child safety seat, our two-door Nissan became inconvenient to use. The seven-year-old car had almost zero value when my husband traded it in for a new Nissan station wagon.
By the 10th year, our station wagon had many scratches, dents and had undergone several repairs. All the hubcaps went missing one by one; they had rolled off while we were on the road.
Since we wouldn’t have wanted the car to break down halfway to Narita airport, we decided to get a new car in June 2004.
For the first time, we all went along to hunt for one. When we went to a Netz Toyota car dealer’s shop, we were amazed. It had a vending machine which provided free drinks, a TV, a play corner for kids, and foosball.
The chief salesman, Mr H, immediately attended to us. We picked a seven-seater Sienta, had it installed with a GPS navigator, TV, CD player and rear-view camera monitor, and took up a two-year maintenance package.
Our shabby Nissan was worth nothing, and Mr H disposed it for us at no charge. The manager came to greet us with plenty of goodies for Ken as a token of gratitude.
The Sienta was supposed to arrive in three weeks’ time.
However, a week before that, our station wagon broke down right in our parking lot. The clutch cable had snapped as we were about to go out. So Mr H arranged for our new car to arrive in a week’s time.
When Mr H drove the Sienta to us, it was like bringing a new baby home. When Mr H’s assistant towed away our Nissan, it was as if we were witnessing a funeral.
Acquiring a car in Japan involves many procedures and incurs lots of expenses. You have to pay an acquisition tax (5% of the car’s price), an annual automobile tax, a weight tax, mandatory insurance, processing fees, official expenses for the car’s registration and verification of a parking lot, and recycling deposit.
You must show proof that you have a parking space (rented or your own) by submitting the certificate of registered parking space (shakoshomeishou) to the police who would come to inspect the space.
Rental of a parking lot depends on the owner and area. It may range from ¥10,000 to ¥20,000 (RM380 to RM760) per month.
Although Mr H handled most of the paperwork, my husband had to produce his officially registered personal inkan (seal) certificate from the city office as proof to get the documents stamped.
The insurance and car registration documents must remain in your car at all times.
All cars must undergo a compulsory safety inspection (called “shaken” in Japanese) every two years, except for new cars, for which the shaken is due on the third year of purchase.
Our car dealer’s workshop is authorised to perform the shaken. The cost of shaken depends on the engine size, condition and necessary repairs for the car. Generally, it costs between ¥100,000 and ¥200,000 (RM3,800 and RM7,600). An inspection approval sticker would then be placed on the windshield.
The shaken becomes more expensive as the car gets older, so some people change their cars in the fifth or seventh year. Cars depreciate quickly, too.
Owning a car is expensive. Petrol costs around ¥127 (RM4.80) per litre at present. Furthermore, tolls and parking fees are very high.
We had our Sienta for less than four-and-a-half years. During the half-yearly maintenance in late November 2008, Mr H suggested we switch to a bigger model, the Wish, which was on offer until the end of the month.
Considering the cost of changing four tyres, shaken for the coming fifth year, repair of a very small dent (about ¥50,000 or RM1,900) and the good price offered for our Sienta, my husband Koji contemplated trading it in.
I hesitated due to the economic downturn. “I’ll take a three-year loan. This will be our last new car before my coming retirement,” Koji promised. We made our decision at the last minute. After closing the deal, Mr H and the manager gave us appreciation gifts.
As part of the Japanese New Year celebrations, the shop holds an annual omochi (glutinous rice cake) pounding event with lucky draws and special discounts. Customers can enjoy the omochi with different toppings and sauces, and free flow of drinks. Kids have fun pounding the omochi and exchanging the flat marbles (given by the staff) for their favourite snacks.
Well, the customer is king at car dealerships, for Mr H or his staff would stand by the roadside to watch out for the traffic and give us a deep bow before we drive off.
Sarah Mori is a Malaysian married to a Japanese and has been living in Japan since 1992.
fr:thestar.com.my/lifestyle/story.asp?file=/2010/2/8/lifefocus/5591477&sec=lifefocus
Spare parts dilemma for owners of older cars
JOHOR BARU: The ban is one year away but owners of older vehicles here are in a dilemma over the National Automotive Policy (NAP), which disallows the import of used car parts.
They fear that the move will lead to more expensive parts for their vehicles, especially those that are more than 10 years old.
Medical student Joseph Fernandez, 24, said that even without the NAP ruling, it was already tough finding spare parts for his 1970 Mercedes-Benz.
He inherited the car after his father’s death, so it has sentimental value for him.
“I love the car dearly but sometimes it is a headache to find spare parts,” he said.
The NAP was announced in October last year and is set to open up the local auto sector.
Technician Shawn Dass, 22, said the high prices of new spare parts were a burden to low-income earners.
“I own a 1970 Volkswagen. Sometimes, it is more affordable to find second-hand parts for it,” he said.
Factory supervisor John Ivan said spare parts for cars beyond 10 years old were limited in the market.
Ivan, who drives a 1993 Nissan Sunny, said he had to visit several shops before he could find the spare parts.
“Sometimes, kereta potong (vehicle chop shop) dealers are a blessing because they have many used spare parts for the older vehicles,” he said.
Magazine writer Sharizan Wahib, 24, said he could easily find the parts for his 1994 Proton Iswara from kereta potong dealers.
Johor Used Car Spare-Part Dealers Association committee member Ng Keng Heng said that approximately 5,000 dealers in the country would be affected by the ruling.
“These dealers specialise in selling used and reconditioned spare parts for vehicles,” he added.
fr:thestar.com.my/news/story.asp?file=/2010/2/8/nation/5578558&sec=nation
Maximising the resale value of your car
SO, you want to sell your car. Naturally, you’ll want the best resale value your ride can offer.
However, the automobile (like nearly everything else) is already depreciating in value the moment you turn the ignition switch for the first time (unless of course, it’s a classic or collector’s item).
Some experts claim that the value of your car goes down by 65% in just five years of normal driving.
However, a vehicle’s resale value is dependent on a number of factors – the demand for that particular make and model, mileage and if it’s accident-free or otherwise.
On top of that, second-hand car dealers and banks also have their own methods of evaluating the resale value of your vehicle.
So before you slap on the “for sale” sign on the side of your vehicle, here are a few simple tips that could help maximise its resale value.
Don’t crash
Other than the age of your vehicle, knocks, dents or scratches can pummel the resale value big time.
If your car has been involved in an accident, get it fixed immediately, says Chong, a used-car dealer in Kuala Lumpur.
“An experienced used-car dealer who is evaluating the value of your car can spot the signs of an accident a mile away! If you do get that dent fix, always get it done through a reputable workshop.
“Also, don’t compromise if you need to replace any spare parts. Always use factory or original parts, as they’ll last longer and will of course give added value if you want to sell your car.
You can also command a better price if the parts are genuine.”
Chong adds that it doesn’t hurt to be honest about the accidents or repair jobs on your car with the potential buyer when you plan to sell.
“Keep all records, like receipts of the repair works that you have done to your car. If you try to be evasive, the potential buyer may think that the damage could be worse than it seems.
Sending your car for regular service will ensure it’s performing at optimum level. What’s more, it also shows that the vehicle has been well looked after by its previous owner.
Stick to the maintenance schedule
Chan, a car salesman from Kepong, says it is a good habit to keep records of maintenance schedules of your vehicle.
“You should keep receipts for all maintenance and repair work, no matter how minor. Having documents of your vehicle’s service history will be the best evidence that your car has been well maintained,” he says.
He adds that buyers are also willing to pay a higher price for vehicles with proper documented service history.
Keeping your car clean is also a sign that the car is being well maintained. “If there is a stain on the upholstery, clean it up quickly. Regular washing and waxing will also help keep your car in tip-top condition and make it more appealing to potential buyers,” says Chong.
Fix it now
If your trip odometer is no longer functioning or one of your headlights isn’t working, get it fixed as soon as possible, advises Ali, another used-car salesman in the Klang Valley.
“When there’s a problem, get it done immediately. Do not let your car slip into a state of disrepair. The more problems you need to fix, the more money you’ll need to fork out.
“Some problems, if left unattended for too long, also cost big bucks to fix. A vehicle with prompt and correct maintenance will have much better resale value,” he says.
Don’t ‘pimp it’
Shows like MTV’s “Pimp My Ride,” where ordinary cars are subjected to insane visual and performance modifications, may look spectacular on television, but in reality, adding crazy modifications to your vehicle will only depreciate its value.
“There’s a reason why a car is meant to use factory parts. Customising it and adding parts that were not designed for it in the first place could actually do more harm than good to your car.”
Vincent, who works in a vehicle after-market shop in Petaling Jaya, says any car customisation should only be attempted after thorough research.
“Speak to professionals, mechanics or even other similar vehicle owners and get their opinions first. The modification should be an enhancement and not be destructive to your vehicle.
“Super-large rims may look cool on a car but it could affect the handling and nobody wants a car that is difficult to control.”
Vincent says modifications such as an upgraded stereo system, adding a sun roof or window tints that are within regulations, can enhance a car’s resale value.
“Actor Vin Diesel looked cool in his tricked-out cars in the Fast and Furious movies, but it’s best to leave the over-the-top modifications to Hollywood.”
fr:biz.thestar.com.my/news/story.asp?file=/2010/2/13/business/5643277&sec=business
Car sales surge with better sentiment and new models
KUALA LUMPUR: Sales of automobiles in January surged 32.8% to 50,622 units with sales getting a lift from improved consumer sentiment and new models launched.
The Malaysian Automotive Association (MAA) said passenger cars accounted for the bulk of the jump in sales as 45,973 units were sold last month compared with 34,629 units in January 2009.
“Supported by an increase in production, sales volume continued its upward trend in January to reach 50,622 units which is 2,954 units or 6.2% higher compared with December 2009,’’ MAA said in a statement yesterday.
Sales of commercial vehicles rose to 4,649 units in January compared with 3,478 in the same month last year.
Analysts contacted said the jump was large but apart from the seasonal increase in January sales, the total number would have benefited from a weak base effect.
“Car sales in the first quarter of last year was low because of the economic slowdown,’’ said an auto analyst with a local brokerage.
“The January numbers were within expectations.’’
In terms of production, the industry produced 51,296 vehicles in January 2010 compared with 37,427 in the same month last year.
January’s production of passenger cars and commercial vehicles was 46,172 and 5,124 respectively.
MAA expects sales in February to be lower than January because of the seasonal short working month due to the Chinese New Year festive holidays and company closures.
fr:biz.thestar.com.my/news/story.asp?file=/2010/2/23/business/5723616&sec=business
Sales expected to continue to pick up in auto sector
KUALA LUMPUR: Companies involved in the auto business have reported strong earnings during the just concluded earnings season and expectations are that those companies will continue to perform better in view of the rise in sales and the economic growth in 2010.
Although most auto-related companies on a year-on-year basis performed better during the fourth quarter of 2009, except for UMW Holdings Bhd, analysts said not all exceeded expectations.
“Underlying trends in the sector have improved. Results of auto stocks under our coverage were largely in line,” said AmResearch analyst Hafriz Hezry.
“Those that significantly outperformed consensus were Proton (Holdings Bhd) and APM (Automotive Holdings Bhd). Though most auto manufacturers showed a quarter-on-quarter dip, this is in line with seasonality.”
Companies such as Proton and MBM Resources Bhd, which has a large stake in Perusahaan Otomobil Kedua Sdn Bhd (Perodua), managed to post higher earnings in the fourth quarter compared with the same period a year ago.
Tan Chong Motor Holdings Bhd too reported better earnings in the fourth quarter as it gained from a stronger ringgit and better sales.
“Things will look up from the first quarter onwards,” said OSK Research analyst Ahmad Maghfur Usman.
Hafriz expects earnings growth of 43% to 52% for the current financial year for the auto stocks it covers.
In terms of biggest surprises, Hafriz said that would be the increase in profit margins.
“The market may have underestimated benefits from economies of scale derived from better plant utilisation and lower discounting activities,” he said.
For the more diversified auto groups such as UMW and DRB-HICOM Bhd, their results headed at opposite direction.
For UMW, its auto businesses during the quarter held up as higher sales of cars and auto parts were recorded by the company in that segment. The company noted that Toyota and Perodua cars commanded a 45.5% share of the Malaysian market in 2009.
But the company posted lower profits during the quarter as it was dragged by some of the group’s other operating segments.
For DRB-HICOM, net profit during the quarter more than doubled from a year ago as the company saw higher contributions from its services segment. The diversified group announced a 125% rise in profit to RM103.5mil during the quarter, which was the company’s third quarter of its fiscal year.
The story of the earnings period could have belonged to the auto parts suppliers, especially APM, which posted its best ever revenue during the quarter as sales within Malaysia surged. Net profit rose about five fold to RM25.5mil from RM5.1mil.
EP Manufacturing Bhd too posted stronger profits from the introduction of new cars by Proton and Perodua. New Hoong Fatt Holdings Bhd, which makes replacement panels for cars, also saw earnings improve in the fourth quarter year-on-year despite taking a sizeable impairment charge.
Ahmad Maghfur concurred and said in general higher sales by Proton and Perodua lifted the performance of the parts suppliers.
fr:biz.thestar.com.my/news/story.asp?file=/2010/3/2/business/5774099&sec=business
Overwhelming response from foreigners on NAP
The government has received overwhelming response from foreign luxury car manufacturers seeking further clarification on the National Automotive Policy (NAP).
“We have received quite a number of delegations coming from luxury car manufacturers asking for further clarification … especially on new technology and green technology,” said International Trade and Industry Ministry (Miti) secretary-general Tan Sri Abdul Rahman Mamat.
Under the NAP which was reviewed last year, the country’s automotive industry has been further liberalised to see a more effective development of the industry.
Among the measures undertaken by the Government was to issue manufacturing licence for foreigners for selected segments without imposing any equity condition beginning this year.
This was offered for the production of luxury passenger vehicles with engine capacity of 1800cc and above, pick-up trucks and commercial vehicles, hybrid and electric vehicles, and motorcycles of 200cc and above.
“Miti and its agencies will continue to promote the industry. We have to provide the infrastructure, the human capital development to support the industry and to ensure that localisation will take place,” Abdul Rahman said.
The Government reviewed the NAP last year to ensure the long-term viability and competitiveness of the domestic automotive industry.
Abdul Rahman also called on industry to focus on research and development to promote higher value-added activities.
This will also assist the automotive part and component manufacturers to upgrade their product quality, capabilities and services as well as help increase the percentage of components sourced locally. — Bernama
The government yesterday continued to support the domestic automotive industry with the Automotive Development Fund and the Industry Adjustment Fund.
On their part, industry players need to keep abreast of developments taking place globally which is now characterised by the adoption of best practices in manufacturing and technological advancements relating to safety and care for the environment, Abdul Rahman said.
fr:biz.thestar.com.my/news/story.asp?file=/2010/3/5/business/5801198&sec=business
Mercedes-Benz unveils C 250 CGI variant
SEPANG: Mercedes-Benz Malaysia Sdn Bhd is targeting to sell between 200 and 300 units of its latest Mercedes-Benz C 250 CGI (charged gasoline injection) Avantgarde variant this year.
Its vice-president of sales and marketing for passenger cars Florian Mueller said the company had already secured some 80 bookings for the new car.
“The interest in the C 250 CGI is high as it comes with a 1.8-litre turbocharged engine that delivers the performance of a 2.5-litre car but has a comparatively lower fuel consumption,” he said at the variant’s launch at the Sepang International Circuit yesterday.
Priced at RM287,888, the C 250 CGI which is locally assembled, will be sold alongside with the older C 200 Kompressor variant which is sold at RM248,888.
At the event, Mercedes-Benz Malaysia also launched its fully imported C 300 Avantgarde Estate variant which is priced at RM396,888.
Mercedes-Benz Malaysia is aiming to sell over 4,200 cars this year, of which some 40% of the sales would be taken up by the C-Class model.
fr:biz.thestar.com.my/news/story.asp?file=/2010/3/6/business/5805691&sec=business
‘Review policy to end Approved Permits for cars’
THE Association of Malay Importers and Traders of Motor Vehicles Malaysia (Pekema), Sarawak branch, has called on the federal government to review the policy to end the Approved Permit (AP) system for vehicles in December 2015.
Its chairman Datuk Abang Khalid Abang Marzuki said the government should consider the situation of Bumiputera automotive entrepreneurs in Sabah and Sarawak, who are currently behind their counterparts in Peninsular Malaysia.
According to him, the automotive entrepreneurs in Sarawak have just started to stabilise their businesses and are trying to follow their Peninsular counterparts in expanding into other industries like hotel and property.
He said Pekema Sarawak felt that its members’ efforts to expand into other industries have become more difficult when the government announced the National Automotive Policy and its objective to end the AP system in 2015.
“The AP system has really helped to create Bumiputera entrepreneurs in the automotive business in line with its original objective. Because of this, we are calling on the government to review its decision which will cause Bumiputera entrepreneurs to suffer losses,” he said yesterday.
Pekema Sarawak has 32 members.
Abang Khalid said Bumiputera entrepreneurs holding APs have never burdened the government but contributed in the form of paying excise duties and donations through Yayasan Pekema.
He said since the APs were introduced 1980s, Malaysia has faced three economic slowdowns but none of the Bumiputra automotive entrepreneurs had approached the government for help.
“During the economic crisis, many Bumiputera automotive entrepreneurs became bankrupt and took huge loans to save their investments. On our own we continued to carry on without burdening the government.”
Pekema Sarawak also called on the government to review the RM10,000 charge for the issuance of each open AP.
“All players in the automotive industry should incur the charge, including the franchise holders, and not just the AP holders. If we want fairness, be fair to all,” Abang Khalid said.
He said the charge made up a sizeable sum in the operation cost of Bumiputera automotive entrepreneurs.
Pekema Sarawak will hold a seminar on the implications of the National Automotive Policy for Bumiputera automotive entrepreneurs next month or in April. Abang Khalid said several well-known figures connected with the local automotive industry are expected to present their working papers.
fr:btimes.com.my/Current_News/BTIMES/articles/peke/Article/
Lexus Malaysia is targeting to sell 400 units
GEORGE TOWN: Lexus Malaysia is targeting to sell 400 units of new Lexus vehicles this year compared with 305 units a year ago. Lexus Malaysia president Kuah Kock Heng told a press conference that some 20% of the sales would come from the northern region.
“Since 2008, we have sold over 500 units of new Lexus in the country, of which about 12% were sold in the northern region and the remainder largely in the Klang Valley.
“Some 20% of our customers come from the corporate sector, while the remainder are individuals,” he said.
Kuah said this after launching a RM1.5mil showroom of Telagamas Motors Sdn Bhd, Lexus’ appointed dealer for the northern region. Also present was Lexus Malaysia chairman Tan Sri Asmat Kamaludin.
Kuah said the opening of the showroom was part of the company’s network expansion.
“We will set up a showroom in Johor Baru at the end of this year. Subsequently, we will study the market in East Malaysia.
“Since entering the local market in 2006 with the LS460L and GS300 models, Lexus Malaysia has sold more than 700 units of Lexus vehicles,” he said.
Since January, Lexus Malaysia has received bookings for 21 units of new Lexus in Penang.
Kuah said an after-sales service centre was now being set up at the showroom, which has a built-up area of 10,000 sq ft.
“It houses a luxury lounge and a cafe. The showroom can display all Lexus models at one time,” he said.
He added that an additional 15,000 sq ft was allocated for the service centre, which would open in June.
fr:biz.thestar.com.my/news/story.asp?file=/2010/3/20/business/20100320093330&sec=business
February vehicle sales up 8.7% to 40,654 units
PETALING JAYA: Motor vehicle sales for February rose 8.7% to 40,654 units from 37,386 in the same month last year but dipped 19.7% month-on-month due to the short working month for the Chinese New Year festive holidays, according to the Malaysian Automotive Association (MAA).
“As at year-to-date February 2010, sales volume expanded by 21% when compared with the same period in 2009,” it said in a statement.
MAA said sales volume for March 2010 would be better than February 2010 due to the seasonal factor and year-on-year sales volume expansion recorded in the first two months of the year.
An analyst from a local bank-backed brokerage said the sales figures for February 2010 were within expectations.
“The improved sales is due to the better economic outlook and locked-in sales for the Chinese New Year (CNY) period.
“If you recall also, the CNY period last year fell in January,” he told StarBiz.
Of the February sales, MAA said 36,551 units comprised passenger vehicles and the balance 4,103 commercial vehicles.
Total production in February 2010 fell to 40,272 units from 40,632 a year earlier while year-to-date production dropped to 91,568 units from 78,059 previously.
Of the total vehicles produced in February this year, passenger vehicles totalled 36,740 units while the remaining 3,532 comprised commercial vehicles.
On expected sales for March 2010, the analyst said sales should exceed the 44,896 units sold in March 2009.
“With the improved economic outlook and returning consumer confidence, sales should be higher,” he said.
fr:biz.thestar.com.my/news/story.asp?file=/2010/3/23/business/5912638&sec=business
Quill sees higher BMW car sales
It expects up to 20% rise due to stronger demand
PETALING JAYA: Quill Automobiles Sdn Bhd, which has sold 150 BMW cars since November, expects a 15% to 20% increase in sales volume within the next six months.
Since setting up its 4S (sales, service, systems and spare parts) centre at Jalan Semangat here last year, the newly appointed dealer for BMW cars in Malaysia had seen increased awareness and interest from both existing and potential BMW customers, said director Roland Ooi.
“Since we started in November, we already have 180 orders. We are targeting a 15% to 20% increase in (sales) volume in the next six months,” he told StarBiz.
Ooi said economic conditions and consumer sentiment were good.
“This year we’ve seen a good three months. Going forward, things look positive. Last year, people were cautious.”
He said new BMW launches this year (the recently launched X1 and soon-to-be-revealed 730Li and 5-Series) would help generate interest and boost sales in Malaysia.
Ooi also said Quill Automobiles offered a near complete range of BMW models.
“We want to become the best performing BMW dealership in Malaysia.” There are currently 14 BMW dealers in the country.
On another note, Ooi said the 51,000-sq-ft outlet in Jalan Semangat would complement the company’s 27,000-sq-ft satellite workshop in Puchong, making Quill Automobiles a full-fledged BMW 4S dealer in Malaysia.
“With this centre, we can now cater to a bigger market. Our Puchong outlet caters mostly to customers in the Puchong, Subang, Cyberjaya and Putrajaya areas.”
He said the PJ outlet, which was launched on Saturday, could provide “fastlane” services (maintenance work takes less than two hours to complete) to up to 12 cars per day. The Puchong workshop can cater to up to 18 vehicles per day.
Director Datuk Michael Ong said the company invested “quite a bit” in the new centre.
“We need our brand (Quill) to be as good as the product,” he said, adding that the PJ outlet was strategically located.
Quill Automobiles, part of the Quill Group, is also a dealer for Rolls-Royce vehicles in Malaysia. Ooi said the PJ outlet would also double up as a service centre for Rolls-Royce cars locally.
“We hope to provide services to Rolls-Royce customers in less than two months. Currently, the cars are sent to Singapore for routine maintenance.”
fr:biz.thestar.com.my/news/story.asp?file=/2010/4/13/business/6026047&sec=business
Honda hit record sales in March
PETALING JAYA: Honda (M) Sdn Bhd’s March sales have hit 4,041 units, the highest monthly record in the company’s history.
It said that merely three months into 2010, the company had already hit 25% of the annual target of 40,000 units.
“Such encouraging sales record would surely drive us harder in providing the best for our customers,” managing director and chief executive officer Toru Takahashi said in a statement.
The catalyst for its good performance was said to be the City model, which recorded 43% of the total sales, with more than 4,000 units booked.
Only a month into its unveiling of the newly facelifted CR-V, Honda had sold 556 units, 59% more than its preliminary sales target of 350 units, while 1,600 of bookings were in the line.
The Accord and Civic models had also respectively contributed 19% and 18% to the total sales while completely-build-units models such as Jazz and Stream’s sales stood at 6%.
The company was looking forward to expanding its existing line-up to include the All-New Freed, a new compact premium multi purpose vehicle (MPV).
Expected to hit the Malaysian shores on April 22, the new addition would create a brand new segment- premium compact MPV.
The company is confident that it will achieve its annual sales target of 40,000 units.
fr:biz.thestar.com.my/news/story.asp?file=/2010/4/13/business/6042801&sec=business
BMW sees better year for 7 Series
KUALA LUMPUR: BMW Group Malaysia which sold 150 units of its flagship BMW 7 Series premium sedans last year, is expected to surpass the achievement this year with its range of newly-launched variants.
Managing director Geoffrey Briscoe said the premium large sedan segment was the most difficult in the market as their customers were more discerning and picky.
“However, we have received good response to our new line-up and our cars have everything that the customers in this price range of cars want,” he said at the launch of the BMW 730Li and Individual 760Li variants here yesterday.
The sedan variants are equipped with luxury fittings such as all-leather interior, rear seat video monitors, generous rear legroom and powerful engines that still offer good fuel economy.
The Thai-assembled 730Li, which comes with a 3.0-litre engine and a six-speed automatic transmission, is priced at RM648,800, while the top-of-the-line Individual 760Li, fully imported from Germany, gets a 6.0-litre engine, an eight-speed automatic transmission and a price tag of RM1,388,800.
Briscoe also said the 730Li was expected to account for a significant amount of the overall BMW 7 Series sales this year.
fr:biz.thestar.com.my/news/story.asp?file=/2010/4/15/business/6055482&sec=business
Auto sector sees record sales
But Malaysian Automotive Association not revising sales forecast for this year
PETALING JAYA: Given the stellar sales performance by some local car companies recently, 2010 could be a record-breaking year for the Malaysian automotive industry, analysts and industry players predict.
OSK Research auto analyst Ahmad Maghfur Usman believes the total industry volume (TIV) this year could exceed the Malaysian Automotive Association’s (MAA) forecast of 550,000 units and even Malaysia’s all-time high of 552,316 units in 2005.
“MAA’s forecast of 550,000 units can be surpassed and TIV could reach a record high this year,” he said when contacted by StarBiz yesterday.
Earlier this week, Honda Malaysia Sdn Bhd and Perusahaan Otomobil Kedua Sdn Bhd (Perodua) announced that sales had hit record highs in March.
Honda sold 4,041 units while Perodua recorded a high of 18,500 units last month.
MAA president Datuk Aishah Ahmad said sales for most companies looked good in March.
“We will release the sales figures for March this or next week. Looking at the numbers, it’s going to be a record month,” she said when contacted.
Aishah, who said the MAA was not revising its 2010 forecast of 550,000 units, seemed cautiously optimistic that the estimate would be surpassed.
“We don’t want to speak too soon but we believe it can be exceeded. However, we are not adjusting (our forecast). For now it looks positive. But the local automotive industry is policy driven. Something could still come up and anything can happen.”
On whether TIV for 2010 could exceed 2005’s all-time high, she said: “It’s possible. This year could be the highest ever.”
In the luxury segment, a spokesman from BMW Malaysia Sdn Bhd said response for its newly launched BMW X1 sports utility vehicle (SUV) had been good.
“We ordered 40 vehicles and all have been taken up by our dealerships. Our dealers tell us that response for the vehicle has been encouraging,” he said.
The SUV is available in two variants and prices start from RM263,800. The spokesman said a main reason the X1 was popular was because it was competitively priced for its class.
Ahmad said the stellar sales performance in the first quarter of the year was within expectations.
“On the backdrop of a much improved economy and pent-up demand, it’s not surprising to see encouraging sales in the first quarter of the year.
“We believe this trend should continue until the first half of the year but for the second half, I’m a bit more cautious,” he said.
He said if the Government were to decide to impose the fuel subsidy scheme (which has since been shelved), sales of vehicles in the country could be affected.
Frost & Sullivan partner and automotive and transportation practice head for Asia Pacific Kavan Mukhtyar also concurred that pent-up demand and improved economy had boosted TIV in the first quarter.
“Finance and approval rates have been stable and there is a ‘feel-good’ factor among consumers so spending has gone up. The momentum started to pick in the third quarter of last year and we feel it will start moderating towards the end of 2010.”
Kavan said Frost & Sullivan was maintaining its 2010 TIV forecast of 555,000 units.
“We believe TIV for this year can exceed that of 2005, albeit by a small margin.”
fr:biz.thestar.com.my/news/story.asp?file=/2010/4/15/business/6057629&sec=business
More KTM Komuter stations to have facilities for the disabled
KUALA LUMPUR: Access for the disabled will be improved in 10 more KTM Komuter stations, at an estimated cost of RM20mil, under the 10th Malaysian Plan.
Transport Minister Datuk Seri Ong Tee Keat said the Government was determined to ensure sufficient public transportation facilities for the physically-challenged group.
The stations are Kepong, Batu Tiga, Klang, UKM, Bangi, Kuala Lumpur, Tanjung Malim, Putra, Nilai and Padang Jawa.
Upgrades to five stations – Bandar Tasik Selatan, Serdang, Shah Alam, Rawang and Sungai Buloh – were near completion, he added.
A total of RM10mil was allocated under the Ninth Malaysian Plan to build lifts, ramps for wheelchairs, special toilets and parking lots at these five stations, he said.
Ong said the upgrading project was being extended to other public transportations such as airlines and bus services.
“I was also on wheelchair before and I know how they feel and need for the facilities,” he said, after visiting Sungai Buloh and Serendah Komuter stations Thursday.
Meanwhile, Ong said the ministry was also exploring the possibility of modifying existing railway tracks in the country to accommodate high-speed trains.
He said existing tracks, suitable for trains running at not more than 140kph, were too narrow for high-speed trains that could reach between 320kph and 350kph.
fr:thestar.com.my/news/story.asp?file=/2010/4/15/nation/20100415210850&sec=nation
Honda upbeat on sales of new MPV
KUALA LUMPUR: Honda Malaysia Sdn Bhd is targeting to sell 1,600 units annually of the Honda Freed, its newly launched premium compact multi-purpose vehicle (MPV).
Managing director and chief executive officer Toru Takahashi said the company was confident of achieving the sales target. “Today (yesterday), we received 150 bookings for this model,” he told reporters at the launch of the model here.
The MPV, manufactured in Indonesia, was currently on sale in Japan, Indonesia, Thailand, Singapore, Brunei and Malaysia, he said.
The contemporary looking model is powered by the 1.5L i-VTEC engine. Its price on the road starts from RM112,980 to RM115,180.
As of March this year, Honda had sold 155,134 units of the Freed in Japan, 12,151 units in Indonesia, 1,0441 units in Thailand, and 43 units in Singapore and Brunei.
Poised to be a smart choice complete with practicality, performance and style, the model appealed particularly to professional urbanites with young families, Takahashi said.
“The MPV also offers a comfortable ride for seven passengers and the third row of passenger seats can be converted into additional cargo space to meet endless possibilities and needs of its occupants,” he said.
Honda Malaysia recently announced a buoyant month as its March sales hit 4,041 units, the highest monthly record in the company’s local history.
Just three months into the new year, Honda Malaysia has already hit 25% of its annual target of 40,000 units
fr:biz.thestar.com.my/news/story.asp?file=/2010/4/23/business/6116191&sec=business
Vehicle sales up on positive sentiment
PETALING JAYA: Motor vehicle sales for March surged 25% to 56,139 units from 44,896 in the same month last year due to continued improvements in market sentiments and consumer confidence, according to the Malaysian Automotive Association (MAA).
As a result, sales for the first three months of the year were up 27,026 units or 22% to 147,415 units against the same period last year, it said in a statement yesterday.
Sales volume for April was expected to “continue its expansionary trend” because there were no negative developments in the economy and the automotive market, MAA said, adding that supply had increased to fulfil outstanding orders.
An analyst from a local bank-backed brokerage said the sales figures for March were within expectations.
“It is not surprising, given the better economic outlook. There is also a lot of pent-up demand as buyers were cautious and adopting a wait-and-see approach for the most of 2009,” he said when contacted by StarBiz.
Of the March sales, MAA said 50,533 units comprised passenger vehicles and the balance 5,606 commercial vehicles.
The MAA said production in March “has been stepped up” to meet the growing demand.
Total production last month increased to 51,579 units from 35,950 a year earlier while year-to-date production rose to 143,147 units from 114,009 previously.
Of the total vehicles produced in March, passenger vehicles totalled 47,729 units while the remaining 3,850 are commercial vehicles.
In a report last week, MAA president Datuk Aishah Ahmad said its total industry volume estimate of 550,000 units for 2010 could be surpassed, given the stellar sales performance of local car companies so far.
fr:biz.thestar.com.my/news/story.asp?file=/2010/4/22/business/6106713&sec=business
Higher loan rates will hit car sales
PETALING JAYA: Interest rates on car loans have increased by an average of 0.25 percentage point for national cars and 0.7 percentage point for non-national makes since the overnight policy rate — the benchmark interest rate which determines banks’ lending rates — was revised upwards by 25 basis points to 2.25% in early March.
Dealers said they were already feeling the impact.
New car registrations reached 56,139 units last month, 25% higher than the same month last year, as buyers locked in their purchases before the widely-anticipated interest rate hike.
The real impact on car sales figures would probably be seen from April, according to industry players.
“We are expecting an adverse impact on sales from the recent hike,” Proton Edar Dealers Association Malaysia president Armin Baniaz Pahamin told StarBizWeek.
“Already, national cars have higher interest rates than non-national cars before the hike.”
This is traditionally the case because the credit risk in the national car segment is perceived to be higher than in the non-national car segment as the former tends to target the lower to middle-income earners.
OSK Research in its recent report on the sector noted that dealers had fully capitalised on the recent OPR rate hike in making their earlier sales pitches. “This caused a rush as buyers locked in their orders before the OPR was increased in early March,” the research outfit said.
Proton and Perodua car loan rates had been adjusted to 3.75% for loan tenures of five years and below, 3.9% for six to seven years and 4% for eight to nine-year loans, according to major car dealers. Previously, they ranged from 3.5% to 3.75%.
With the new rates, for example, a person looking to purchase a RM40,000 Perodua car with a five-year loan tenure (at the new rate of 3.75% per annum) will have to pay RM791, or RM8 more, per month.
This goes up to about RM20 more a month for a longer-term loans.
As for new non-national makes, a dealer with Kah Motor Co Sdn Bhd which distributes Honda cars, said hire-purchase rates for new non-national cars had been raised to 3.25% for loan tenures of five years and below, 3.4% for six to seven years and 3.5% for eight to nine-year loans.
Before, hire-purchase interest rates were in the range of 2.4% to 2.8%, he said.
“There is some impact on sales so far. We see some individuals holding back purchases,” the dealer added.
Honda’s market share fell last month on weak sales, sliding 5.8% year-to-date as sales halted largely caused by the impending launch of its new CRV towards the end of this month, OSK Research said.
fr:biz.thestar.com.my/news/story.asp?file=/2010/4/24/business/6121384&sec=business
Mercedes achieves 20% sales growth in first quarter
KUALA LUMPUR: Mercedes-Benz Malaysia Sdn Bhd has registered a 20% sales growth in the first quarter of 2010 by selling 1,089 cars.
The company had sold 908 units in the same period last year, it said in a statement.
“The first-quarter performance clearly reflects the resilience of the auto industry and is also a testament to the excellent brand value of Mercedes-Benz,” said president and chief executive officer Peter Honegg.
Mercedes-Benz led the premium passenger car market with 42% share, he said.
Among the best-selling models were the Mercedes-Benz C-Class, E-Class and S-Class with 510 units, 435 units and 75 units sold respectively.
Honegg also announced that Malaysia would be the first country to unveil the Mercedes-Benz SLS AMG super sports car.
“We are really excited to be able to bring it in to cater to super car enthusiasts in Malaysia,” he said
fr:biz.thestar.com.my/news/story.asp?file=/2010/4/27/business/6136409&sec=business
Don’t be one-eyed in protecting car industry
Making a Point – By Jagdev Singh Sidhu
THE banking industry is a fine example of how liberalisation has worked.
Expansion of the industry’s Islamic banking industry has seen the issuance of new licences and now Bank Negara has loosened its grip on allowing new commercial banks to operate in Malaysia with the granting of licences to ICBC Bank and Bank of China, and also to a consortium of banks from India.
Granting those licences has meant fresh investments in the country. Apart from sinking in fresh capital to start their banks, those financial institutions will be creating employment and adding to economic growth.
Those new foreign banks and the existing foreign players in the country have not weakened Malaysian-owned domestic banks in any way. Competition has proven, throughout every corner of the world, to be a driver of growth instead of an impediment.
While the central bank should be praised for its farsightedness, the same, unfortunately, cannot be said regarding the regulators of the auto industry.
Years of closing our doors to fresh foreign investment in the manufacturing segment has seen large international car companies flock to Thailand, which has been the beneficiary of billions of dollars of foreign money and now has a thriving and growing automotive industry.
Thailand’s gain has come at Malaysia’s expense as a number of those manufacturers had initially pegged Malaysia as their preferred destination years ago. Today, Indonesia too has thrown its name in the hat in trying to grow its automotive industry.
You would have thought that regulators here have learnt their lesson by now but it appears that history has not been a good enough teacher in this country and is set to repeat itself.
Take the case of Berjaya Corp and BYD Auto Co Ltd from China. Berjaya has signed an MoU with BYD Auto to manufacture right-hand drive models of BYD Auto cars and wants to make cars in Malaysia.
The company knows that the current National Automotive Policy does not grant new licences for companies wanting to make cars below 1,800cc and is open to manufacturers wanting to produce higher capacity cars in the country, but it is making its case as to why an exception and a licence should be granted.
The company Berjaya is partnering is not a fly-by-night operator. BYD Auto is part of BYD Co Ltd, a company listed on the Hong Kong Stock Exchange that has a market capitalisation far larger than any listed company on Bursa Malaysia.
Its forte is making rechargable batteries and the company’s auto division is involved in making petrol-powered cars, electric cars and battery-powered bicycles.
Berjaya wants to manufacture BYD petrol engine automobiles first until a time when making electric and hybrid cars becomes commercially viable.
For a start, it is willing to invest up to RM250mil to make between 10,000 and 12,000 cars in the first year of production. Having a manufacturing operation here will open up opportunities for existing vendors and suppliers to capitalise on such an investment.
To close our doors to the Berjaya proposal or any other investment proposal in the 1.8-litre and below category is not only foolish but I must add irresponsible in the day and age when Malaysia is competing to draw investments into the country.
Thanks to further liberalisation under the Asean Free Trade Agreement, car manufacturers in Thailand no longer have to deal with punitive duties, taxes or restrictions when sending their cars to Malaysia. As long as certain minimum conditions are met, cars from neighbouring countries can freely enter Malaysia without additional charges.
Shutting the doors to new investments is therefore counter-productive for the Malaysian economy and the country should not be one-eyed in protecting its domestic car industry.
Having seen established European, Japanese and American manufactures move their base of production to neighbouring countries, the Government should be more flexible this time around in trying to get China car companies, or any others in the future, to open shop here.
This is because while we have lost out on major investments to other countries in South-East Asia, there is still opportunity for Malaysia to build its own auto base with manufacturers from other countries.
And after more than two decades of having a domestic car industry, the time has come to open up the industry to local competition much alike what the banking industry has undergone. The benefit of competition and fresh investment speaks for itself.
# Deputy news editor Jagdev Singh Sidhu wonders if a new diet and exercise regime is needed since the current one of beer and sleep is not working
fr:biz.thestar.com.my/news/story.asp?file=/2010/4/29/business/6153031&sec=business
Nasim raises vehicles sales prediction
KUALA LUMPUR: Nasim Sdn Bhd, the official distributor of Peugeot vehicles in Malaysia, has revised upwards its sales forecast for this year by nearly 30% to 3,800 units from 2,930 units previously.
The revised forecast was in line with increasing demand for the French marque’s vehicles and improving market conditions.
In a statement yesterday, Nasim said its new sales target of 3,800 units was comparable with the 3,766 units it sold last year, with the bulk of sales expected to be registered in the second half of 2010 when it launches three new models and two face lifted variants.
“Total sales in 2009 included the 206 Bestari, which has been phased out. Excluding the 206 Bestari, the company’s sales in 2009 would have totaled 1,419 units, which in itself represented a seven-fold jump from 2008’s figure,” it said in the statement.
Nasim was appointed official Malysian distributor for the Peugeot brand in January 2008.
For the first four months of 2010, Nasim’s sales, excluding sales of the 206 Bestari, has “nearly tripled” to 715 units from 262 units recorded in the same period last year.
“The strong sales in the first four months of 2010 have been largely driven by the award-winning 308 Turbo while demand for both the 3008 VTi and 407 have been steadily picking up,” it said.
Chief executive officer SM Nasarudin SM Nasimuddin said its new sales forecast took into account the anticipated demand for its exciting line-up of products that would be launched in the coming months starting with the award-winning 3008 SUV next month.
“The popularity of the Peugeot brand has been increasing and in line with the strong recovery in the domestic economy, we are confident of achieving out new sales target,” SM Nasarudin said.
New vehicles to be launched this year include the 5008 MPV and a B-segment sedan codenamed, T33, which will be assembled in Gurun, Kedah for both domestic and regional markets,
Nasim will also be launching a facelift of the award-winning 308 VTi soon and is currently taking bookings for the model.
fr:biz.thestar.com.my/news/story.asp?file=/2010/5/12/business/6240778&sec=business
Vehicle sales up 16.8pc in April
KUALA LUMPUR, May 17 — Sales of passenger cars and commercial vehicles in April increased 16.8 per cent year-on-year to 48,706 units from 41,686 units, says the Malaysian Automotive Association (MAA).
It attributed the higher sales to the rush to take delivery of the vehicles before the hike in interest rate.
However, sales of cars and commercial vehicles in April were down 13.2 per cent when compared with March as production could not meet the April delivery deadline.
Sales of passenger cars in April rose to 43,661 units from 37,810 units in the corresponding month last year while that of commercial vehicles rose to 5,045 units from 3,876 units, said MAA in a statement today.
Sales of passenger vehicles in the first four months of this year increased to 176,718 units from 147,111 units in the corresponding period last year.
Sales of commercial vehicles in the same period shot up to 19,403 units from 14,964 units previously.
For the January-April period, total industry volume was up to 196,121 units from 162,075 units in the same period last year.
MAA said total vehicle production in April jumped to 49,666 units from 39,574 units in April last year.
Passenger vehicles production in April increased to 46,045 units from 36.562 units in April last year while commercial vehicles increased to 3,621 units from 3,012 units.
Passenger vehicles production in the four-month period rose to 176,686 units from 138,890 units in the same period last year while that of commercial vehicles went up to 16,127 units from 14,693 units.
For May sales forecast, sales volume is expected to be maintained at the April level but higher than May last year. — Bernama
fr:themalaysianinsider.com/print/business/vehicle-sales-up-16.8pc-in-april/
Malaysians pay high prices for cars but to say that it is the highest in the world is far fetched. I know cars in at least one other country that are more expensive than in Malaysia.
Malaysians consume more fuel
PETALING JAYA: Malaysians are one of the highest fuel consumers in the region where even price increases have not deterred motorists.
Since 2004, they have consumed more than 400 litres per capita annually, which is much more than Singapore, Thailand, Indonesia, China and India. Singapore, which was ranked second among the list of six countries, only consumed 250 litres per capita in 2007.
India and China consumed under 50 litres per capita in 2007, according to data collated from the Finance Ministry, Domestic Trade, Cooperatives and Consumerism Ministry, International Energy Agency and Global Insight.
Even with fuel prices at its highest in mid-2008, when petrol was at RM2.70 and diesel at RM2.58 per litre, consumption still grew by 8% annually and almost 20 billion litres are expected to be consumed by the end of 2010.
As Malaysia practises a blanket subsidy on fuel, data made available to the Performance Management and Delivery Unit (Pemandu) subsidy rationalisation lab showed that 71% of fuel subsidy was enjoyed by the middle to high-income level groups.
Some 28% of those enjoying fuel subsidy earn more than RM5,000 per month, while 43% earned between RM2,500 and RM5,000.
Abuse of liquid petroleum gas (LPG), or cooking gas, has also contributed to an inflated subsidy bill. Some RM1.71bil was spent on subsidising LPG, to which only RM397mil or 30% are used by households.
It is believed that the rest of the LPG had been misused for commercial purposes or smuggled abroad.
The same issue affects cooking oil, where 70,000 tonnes are subsidised monthly but only about 70% are consumed by households.
fr:thestar.com.my/news/story.asp?file=/2010/5/24/nation/6325399&sec=nation
Nasim targets to sell 1,440 Peugeot SUVs
KUALA LUMPUR: Nasim Sdn Bhd is targeting to sell between 1,200 and 1,440 units of its newly-launched Peugeot 3008 sports utility vehicle (SUV) over the next 12 months.
Samson Anand George, Naza’s group director of corporate communication and principal liaison, said the company aimed to sell between 100 and 120 units a month.
“This will be driven by our marketing strategies and also other supporting segments like after sales service and sales support,” he told a press conference after the launch yesterday.
Malaysia is the first country in Asean to launch the multiple-award winning Peugeot 3008 SUV, which is priced at RM143,888 on-the-road with insurance.
“The Peugeot 3008 will be targeted at both executives who want a sporty premium ride as well as families who want space, luxury and comfort,” said Nasim chief executive officer SM Nasarudin SM Nasimuddin.
The launch was also in conjunction with Peugeot’s 200 year anniversary celebrations.
Nasarudin said there had been strong interest in the Peugeot 3008 prior to yesterday’s launch and that Nasim had taken pre-launch bookings for over 100 units of the SUV.
The Peugeot 3008 comes with an array of features commonly found in premium continental vehicles such as a heads-up display (HUD) panel. Located behind the instrument panel in front of the driver, the HUD can be raised or lowered by a flick of a switch while its brightness can also be adjusted according to the driver’s preference.
The Peugeot 3008 features a 1.6-litre turbocharged engine that is capable of producing 156 horsepower. The engine is Peugeot’s latest Euro 5 engine featuring high pressure direct petrol injection and a fuel consumption of 7.7-litres per 100 km (EU mixed cycle).
Nasim took over the distributorship of the Peugeot brand in January 2008. The company sold 3,766 units last year, making it the second highest selling European car brand in Malaysia after Mercedes-Benz. Samson said the company expects to sell 3,800 units this year.
fr:biz.thestar.com.my/news/story.asp?file=/2010/6/8/business/6421939&sec=business
Govt may withdraw subsidies for highways with alternative routes
KULIM: The Government may withdraw subsidies given to highway concession holders that operate on road stretches with alternative toll-free roads, said Works Minister Datuk Shaziman Abu Mansor.
“It is justifiable to withdraw subsidies for these roads, as toll-free old roads are available for motorists to use. But the subsidies should be retained for highway stretches that have no clear alternative options for motorists to use,” he said after inspecting the relocation of a sewage treatment plant in a nursing college project here yesterday.
Shaziman was commenting on the statement by Minister in the Prime Minister’s Department Datuk Seri Idris Jala that Malaysia would be bankrupt by 2019 if it did not cut fuel and other subsidies and rein in borrowings.
Idris had said the Government, which spent RM4.6bil in annual toll subsidies, could save RM3.7bil over five years if it allowed toll rates to be increased in the middle of the year as per concession agreement for highways with alternative toll-free routes.
Shaziman, however, said the Cabinet had so far not made any decision to withdraw the subsidies to the concession holders.
“Highways, roads like the SMART tunnel, North-South Expressway and Ampang-Kuala Lumpur Elevated Highway (AKLEH), have other optional routes.
“If we do not allow an increase in toll fares on these highways according to their concession agreements, the Government may end up paying compensation that could run into a few billion ringgit,” he said.
Shaziman added that the money allocated to pay the compensation could be used for other purposes, such as the building of schools and hospitals as well as to improve public transportation.
He said the ministry was also willing to discuss with the Malaysian Highway Authority (LLM) and related parties to come up with an acceptable investment return rate (IRR) to be given to the concession holders.
“Some concession holders claim that their returns were as low as 12% as their maintenance costs were high.”
He noted that in some cases, when their IRR was below 10%, some operators might not be able to obtain bank loans, as it was a high risk.
fr:thestar.com.my/news/story.asp?file=/2010/6/10/nation/6436071&sec=nation
‘Pimping’ your car
THROUGHOUT history, man has always taken pride in customising his mode of transport.
The earliest form of “vehicle mod” can be traced back to probably when horses were domesticated and individualised in every way imaginable.
Native Americans painted them, knights donned them with colourful linen and cowboys saddled them with studded silver.
Fast forward to the era of the automobile and vehicle customisation has become a huge fad – a platform for artistic automotive expression.
But let’s talk about resale value. The common automobile, like almost everything else on this planet, starts to depreciate in value as time goes by.
Car modifications, as pleasing as they may seem in the eye of the beholder, generally tend to knock down the value of one’s car even further when compared to a non-customised or “stock” vehicle.
Used Autos Sdn Bhd owner Peter Wong, a Segamat-based used car dealer, explains: “The idea of vehicle modifications screams personalisation, meaning that the car is meant to suit the owner’s individual needs and no one else.
“Because the vehicle will now end up looking totally different from what the manufacturer intended, the range of buyers you can attract will be limited.”
Still, there are vehicle customisations that can actually help increase, if not retain (rather than decrease) the resale value of your car.
All souped up
Rims, or customised wheels, are among the most popular upgrades that could help boost your vehicle’s resale value, says Klang Valley-based tyre agent Vincent Pang.
“Customised wheels not only positively impact the performance and handling of any vehicle, but they can help improve its value as well. Plus, they enhance your vehicle’s appearance,” Pang says.
He, however, advises that customers should go for rims that are identical in size to the vehicle’s original wheels.
“A larger rim means more weight, meaning more effort is needed to spin the wheel and this could result in worse fuel economy. If you must go with a bigger wheel, choose alloy rims, which are lighter, as opposed to (heavier) steel ones.”
Another trick is to compensate for the larger wheel with a lower profile tyre. This is to ensure that the diameter of the new wheel and tyre is the same as the original.
“Keeping the diameter of the new wheel and tyre package equal to the vehicle’s original wheel size should result in very little impact on fuel economy,” says Pang.
“Getting wider rims are also great for handling and stability, something that a lot of buyers look for in a car. However, these wheels will require wider tyres, which can cost more,” he adds.
Jeremy Yeoh, a Kuala Lumpur-based used car dealer, says many vehicle owners are spending more on mobile electronics that help increase their car’s resale value.
“Aftermarket GPS navigation systems are quite popular with today’s drivers because they provide flexibility and mobility compared with systems installed by the car manufacturers.
“These units, which can be stuck on practically anywhere within the vehicle cabin, come with added features such as UBS and Bluetooth connectivity, which are easier to update and use,” he says.
Aftermarket stereo systems are also popular, provided the installation is professionally done and does not interfere with the vehicle’s electrical system, says Wong.
“I’ve known of car owners that installed crazy sound systems into their vehicles and the wiring job was poorly done. This caused an overload and the car caught fire.
“DVD entertainment systems are also quite popular, but it depends on the types of vehicle. These are ideal SUVs (sports-utility vehicles) and MPVs (multipurpose vehicles), which are great for carrying five to seven passengers during long trips.”
According to Yeoh, certain visual upgrades can also increase the resale value of a car if they are “not over the top” and legal.
“Given our hot climate, adding a sun-roof or window tinting, as long as it is legal, can help garner a higher resale value.”
fr:biz.thestar.com.my/news/story.asp?file=/2010/6/12/business/6434859&sec=business
Boost to the auto industry
PETALING JAYA: The country’s economic recovery will boost the automotive industry, especially in the sale of cars.
Naza Group of Companies joint group executive chairman Datuk SM Faisal SM Nasimuddin said recent sales of cars were a good reflection of “where things were moving”.
He said in a statement yesterday that some 100 units of its latest 1.8L sedan – the Chevrolet Cruze – were snapped up nationwide barely a week after its June 10 launch.
He added that Naza, through its subsidiary Pavilion Crest Sdn Bhd, hoped to sell 1,000 units by year’s end. Faisal said response to the Cruze reflected Naza’s optimism about the country’s economic recovery and future prospects.
“The current positive market sentiment is also a clear indicative of the New Economic Model’s drive to grow entrepreneurship, in turn increasing productivity and enhancing the country’s economic landscape,” he added.
He said due to the Government’s unprecedented efforts in tackling the economic downturn, the recent fourth quarter gross domestic product growth of 4.5% showed that the worst of the global financial crisis had passed.
Faisal also described the recently-tabled 10th Malaysia Plan as “a compass” that will steer corporations like Naza towards supporting effective and smart partnerships like General Motors.
Sales of new vehicles have reportedly risen in the first quarter of this year with the year-on-year volume up 25%.
fr:thestar.com.my/news/story.asp?file=/2010/6/17/nation/6484732&sec=nation
Proton to make small car below 1,000cc
SUBANG JAYA: National carmaker Proton Holdings Bhd hopes to transform its British sports car manufacturer Group Lotus plc into a profitable company under a five-year transformation plan.
Proton group managing director Datuk Syed Zainal Abidin Syed Mohamed Tahir said that the transformation plan was not merely “a lip service” as this time around, a new team had been assembled to make sure the transformation plan would be executed successfully.
“Lotus has been with Proton for almost a decade now. Let the past story of Lotus be the past. We want to make it a profitable company and we are bringing experts in the motor industry to team up with the existing Lotus expertise to form this new team on bringing Lotus into a higher level,” he told reporters yesterday at the presentation of Lotus Cars Moving Forward Plan.
Syed Zainal Abidin said both parties would also collaborate to develop a small car with an engine capacity of less than one liter.
“We believe the market today, not just in Malaysia but the world over, is looking for a smaller car with space, low emissions and better fuel-economy,” he said.
The Proton chief added that the national carmaker could do better with the stronger bond with Lotus as the relationship between both parties would benefit each other in terms of producing a better car with better brand awareness, thus increasing revenue and profit.
Group Lotus plc chief executive officer Dany Bahar said one of the main strategies under the five-year plan was for Lotus to enter into the premium sports car segment alongside Porsche and Ferrari.
“Under the plan, we are targeting to have the best car in class products across the key luxury sports car segment with unparalleled brand experience, sales and after-sales service, efficiency and high quality product,” he said.
At present, Lotus has a presence in 30 markets worldwide with another 25 potential markets to tap into.
Bahar said Lotus was also targeting to increase its production to 8,000 units per annum by 2015 from the current 2,000 units per annum.
fr:biz.thestar.com.my/news/story.asp?file=/2010/6/23/business/6526555&sec=business
National masterplan for public transport
Commission to come out with solution by September 2011
KUALA LUMPUR: The Land Public Transport Commission (SPAD) will draw up a public transport masterplan in six to 12 months from September to ensure the holistic development of public transport in the country.
The commission, which was set up early this month to regulate the land public transport sector, will fully take over as a regulatory body from September.
“This masterplan will take into consideration all aspects of public transport, including connectivity and accessibility, ensuring the development of a more integrated public transport system,” chairman Tan Sri Syed Hamid Albar told a media briefing yesterday.
“We want to look at it (public transport) holistically and not just on an ad hoc basis. The Government is very sensitive to the wishes of the rakyat,” he said.
Syed Hamid said SPAD was already engaging with the public on feedback to draw up the masterplan and would continue to do so from time to time. “Once the feedback is received, we will draw up the masterplan and submit to the Government.”
He added that SPAD wanted to ensure the public land transport system was de-politicised.
Although nothing was firm yet, SPAD might consider tendering out non-profitable routes not serviced by bus operators, chief operating officer Shahril Mokhtar said.
He said the lucrative routes were serviced by many bus operators while the residential areas were under served.
There are more than 16 bus operators in the Klang Valley.
Without disclosing much detail, Shahril said the Government would subsidise these under-served “social routes” but operators had to comply to a set of criteria set up by SPAD, including bus frequency, reliability and systematic delivery.
He said stricter rules would apply for those seeking new commercial vehicle licences. However, he said, it was not going to take away existing operators’ licences but might need them to comply with new rules.
Apart from that, Shahril said, SPAD was considering putting enforcement on private vehicles using the dedicated bus lanes. However, the current Road Transport Act needs to be amended to give SPAD such powers.
With all the planned effort, Syed Hamid said the commission had targeted 25% of the Klang Valley’s population to use public transport by 2012.
The Government’s target under the 10th Malaysia Plan is to improve the share of public transport from 12% in 2009 to 30% by 2015 in Greater KL.
“We had at one time a high public transport usage of up to 34%, but it has dropped badly to only 12% now.
“I agree that people are not satisfied with public transport. Public confidence is quite low to put it mildly. It is not an easy task but give us a chance,” he said, adding that the Government’s target is to achieve 25% by 2020 and 30% by 2015.
Syed Hamid said the 2015 target was not difficult to achieve with proper planning. He said SPAD was also studying public transportation of developed nations to be incorporated in the masterplan.
Chief executive officer Mohd Nur Ismal Mohamed Kamal said the commission was open to complaints, suggestions and ideas and various channels to contact SPAD, aside from the Land Public Transport Forum, would be set up soon.
“The process for the masterplan has started and it will take some time as we want to make sure the social and economic impact has been taken into account,” he said.
Mohd Nur Ismal said the commission might consider bringing back the “mini bus” which was terminated in the late 1990s to serve some areas but would study it thoroughly before making any decision.
Commenting on the importance of public feedback, he said: “It is pretentious to say that we are champions of the public if we do not listen to the rakyat.”
Syed Hamid said its immediate target as part of its masterplan was to carry out five initiatives for the National Key Result Area for urban public transport under the Government Transformation Programme.
They include improving bus journey times by having Bus Express Transit services, establishing dedicated bus right of way such as the Bus Rapid Transit system (bus lanes physically separated from other traffic), building and improving of over 1,000 bus stops in the Klang Valley, reorganising the bus network in the Klang Valley and integrated smart ticketing.
fr:biz.thestar.com.my/news/story.asp?file=/2010/6/25/business/6544405&sec=business
Slowdown in H2 vehicle sales seen
PETALING JAYA: Vehicle sales are expected to ease in the second half of the year but total industry volume (TIV) for 2010 is likely to be Malaysia’s highest ever, say analysts.
“Sales for the second half of 2010 will not be as good as the first half but it could still hover well above 2009’s (second half) sales, which were partly dampened by buyers holding back their purchases until the Perodua Alza was launched (in November 2009),” said an analyst.
“There will be a slew of new models coming in the second half of this year and this will drive demand prior to the upcoming (Hari Raya) festive season.”
He said the TIV for 2010 would exceed the Malaysian Automotive Association’s (MAA) forecast of 550,000.
“Consumer sentiment has improved significantly compared with last year, which is a boon to boosting auto sales. We are forecasting 573,092 units, which will be a 6.7% growth,” he said.
In a statement last month, the MAA said the TIV for the first five months of 2010 rose 20% to 247,072 units versus 206,060 units during the same period in 2009.
The MAA is expected to announce the TIV for June (and the first half of the year) later this month.
Frost & Sullivan partner and automotive and transportation practice head for Asia Pacific Kavan Mukhtyar also concurred that the MAA’s TIV forecast for 2010 would be surpassed, given the 2010 sales trend so far.
“The Malaysian economy performed better in the first half of 2010 compared with (the same period) last year and sales from January to May have shown healthy growth,” he told StarBizWeek, adding that growth in the second half was likely to be slower than the first half.
Kavan said Frost & Sullivan could revise its initial TIV forecast of 555,000 for 2010 once the MAA had announced the TIV for the first half of the year. Malaysia recorded its highest TIV of 552,316 units in 2005.
The interest rate hike in early June was unlikely to dampen vehicle sales, he said, adding: “The interest rate increase was pretty nominal. However, a rise in inflation could result in interest rates going up by a further 50 basis points and this could affect sales.”
Another analyst concurred that a further rise in interest rates might affect car sales going forward.
“Interest rates could increase later in the year. This is likely to cause buyers to be a little bit more cautious with their spending habits.”
He also said MAA’s 550,000 TIV forecast was likely to be surpassed.
fr:biz.thestar.com.my/news/story.asp?file=/2010/7/3/business/6596874&sec=business
Public transport system needs big overhaul
I WISH to comment to your recent report “Convenience the key to increasing public transport usage: Kong.”
I think the Transport Ministry’s plan, to increase usage of public transportation four-fold over the next five years, is too ambitious.
Let me share my experience of taking the KTM Komuter from Mid Valley to Tasik Selation station two Fridays ago.
I was at the Mid Valley station at 8pm and the schedule board showed the KTM train was to arrive at the platform at 8:30pm. It only arrived at 8:45pm which wasn’t that bad as it was only 15 minutes late.
But the train was so packed, I did not manage to get in. That was still all right as the board showed the next train would be arriving at 9:15pm.
But as I was waiting, the arrival time kept changing. From 9:15pm it was changed to 9:30pm and then to 9:45pm. I was horrified as that meant I had to wait for an hour for the next train.
As I was waiting, many others started to leave the station to find other ways to get home. I stayed on and finally the train arrived. It too was packed, but I was lucky to get in.
I was in the “Ladies only” coach and yet, some men tried to take advantage of the situation and force their way in as well.
I do not know why the train travelled at a very slow speed on that particular day. Mid Valley is only three stations away from Tasik Selatan yet the journey took about 20 minutes.
In total, it took me two hours waiting and travelling to reach home for a journey which should have taken 15 minutes. How ridiculous is that.
Before Rapid KL took over the bus services, I only needed to take one Intrakota bus from my home to reach Kotaraya. But ever since Rapid KL took over the route, I need to take three buses now to get to Central Market.
Instead of improving the bus services, Rapid KL actually worsened it in my area.
Many residents in my area have switched to driving instead of taking public transport.
WINNIE CHAN,
Kuala Lumpur.
fr:thestar.com.my/news/story.asp?file=/2010/7/6/focus/6582272&sec=focus
More hardship with hike in interest rates
We have been informed by banks and salespersons that hire purchase interest rate has been raised to above 4% and will be increased further. The interest last year was about 2%.
I think such increases are harmful to our consumers and also our economy.
The number of complaints over repossession is rising. Such a trend will bring more problems to the banks and eventually to the nation. Let me explain.
First, we understand that there may be a small growth in the economy but there is no improvement to the financial flow. Our salary remains the same while the cost of living is high compared with other countries.
In today’s context, a car is one of the basic necessities. Almost everyone is working and we can see even working mothers have to be in the office until 7pm or 8pm most of the time.
The removal of fuel subsidy, together with a hike in interest rates, will be tough for the rakyat.
We will be grateful if the Government and Bank Negara could consider reducing interest rates to the previous level.
Second, with higher interest rates, we end up paying more in servicing our loans. This will be a burden to everyone. And those who can’t pay will have their cars repossessed. They have to pay high repossession and storage fees.
How many people can afford to redeem their cars immediately?
In addition to having their cars taken away and being blacklisted by the bank, they also have to suffer embarrassment, which eventually affects the family environment.
Many may not be aware of the change in the Hire Purchase Act on repossession. It, however, benefits those who have paid up more than a third of their loans as, in such cases, the bank needs a court order for repossession.
PEOPLE FIRST,
Kuala Lumpur
fr:thestaronline.com/news/story.asp?file=/2010/7/7/focus/6608731&sec=focus
1-AP
by Charlie
Letter
An ad in UK says :
Toyota Estima Emina 2.4 Latest Edition.
5 Doors, Automatic, MPV, Petrol, 49,000 miles, Pearl White, 02 Reg year 2002, Air Conditioning, Anti-Lock Braking System, Central Locking, Compact Disc Player, 8 Seats, Electric Mirrors, Electric Windows, Adjustable Seat Height, Adjustable Steering Column, Air Bag, Alarm,
£8595
This car will sell for RM 160,000 in KL.
But £1 = RM 4.794
£ 8595 = RM 41,204.
So cheap? Cannot be!
OK. The pound took a dip. Lets use the old old rate of £1= RM 7
Then £ 8595 = RM 60,165
So cheap ? Really ? Why are we Malaysians paying RM 160,000?
The costing is :
Vehicle CIF — RM 60,000
Duty.Taxes/profit — RM 60,000
The other RM 40,000? Goes to the notorious AP.
If I sell 1 AP per month, my income is higher than the monthly salary of a CEO of a listed company. More than 1.5 times the annual salary of a fresh graduate.
If I sell 2 APs per month, I am a millionaire by definition : million dollar income.
Why do you want to go to U, struggle for 3-4 years, and get paid less than what they make with 1-AP?
Now I know why AP is extended again and again, and again …….
fr:blog.limkitsiang.com/2010/07/04/1-ap/
New versus second-hand car
By EUGENE MAHALINGAM
WHEN it comes to purchasing a car, one is often confronted with one main decision – whether to buy a brand new or second-hand car.
Each one has its own pull-and-push factors but ultimately, the potential buyer needs to decide what best suits his needs. How much is the potential buyer willing to spend? Is the buyer facing budget constraints? Is the buyer stretching the finances all for the sake of a brand new wheel?
Clearly, if you’ve got a limited or tight budget, then purchasing a used vehicle would be a preferred option. However, even if it cuts your cost by half compared to buying a new car, used vehicles are not risk-free.
First, you won’t really know the extent of the car’s wear and tear. The appearance of the car is rarely a good gauge, as a neat-looking, 10-year-old jalopy could just be firing on one-and-a half cylinders, be up for a transmission overhaul and be a ticking time bomb on wheels.
As such, a used vehicle may require higher maintenance and expensive repairs compared with a new one. What’s more, such repairs won’t be covered by warranty.
Apart from being costlier than its old-aged counter part, owners of new cars can relish in the fact that their vehicles are unlikely to unexpectedly break down in the middle of nowhere for no apparent reason, says Kay Vee Auto car salesman Johnson Low of Petaling Jaya.
“A new car is covered by warranty, so even if you have problems within the (warranty) period, it can be fixed without any additional costs because its their (manufacturers/distributors) responsibility.”
Low noted that many luxury cars especially, offered vehicles with warranties that extended to as long as five years.
“Also, new cars won’t need new parts for a long time. A used car on the other hand may need a lot of things that need changing.”
Low also pointed out that in the case of a break down for new vehicles, many car manufacturers offered towing assistance.
“Basically, driving a new car gives you more peace of mind compared with a used one. Furthermore, one also tends to look good driving a brand new vehicle that just hit the market rather than one that’s been defunct for years,” he says.
Another advantage of a newer car is that it would command a slightly better resale value versus an older model,” Low adds.
Buying a used car
The immediate benefit of buying a used car is that it’s cheaper than a brand new one. Furthermore, a used car also depreciates a lot lesser than a new one.
“New cars lose about 30% to 50% of their value within the first three to four years, at which point the depreciation starts to slow down,” says Used Autos Sdn Bhd owner Peter Wong, a Segamat-based used car dealer.
“In the case of used cars, the previous owner would have absorbed the largest portion of the depreciation cycle. By the time you purchase a used car, nearly all of the costs of owning and operating the car would have been reduced,” he adds.
Jeremy Yeoh, a Kuala Lumpur-based used car dealer says that owning a used car also means lower financing costs, reduced registration and license fees as well as insurance premiums.
According to him, cheaper, fuel efficient cars tend to have better resale value, such as Perodua Kelisa, Kancil and Toyota Vios models.
“Each year, there are new drivers coming onto our roads, and these are mostly students who are often incomeless; it’s their parents who buy them their first cars, mostly used cars that aren’t too expensive.”
Yeoh adds that many people with multiple cars tend to go for used models as an alternate or second household vehicle.
fr:biz.thestar.com.my/news/story.asp?file=/2010/7/10/business/6632399&sec=business
Toyota to assemble Camry sedan in Shah Alam
PETALING JAYA: Toyota Motor Corp of Japan will produce its Camry sedan at Assembly Services Sdn Bhd’s plant in Shah Alam in two years.
Assembly Services is a unit of UMW Toyota Motor Sdn Bhd, which is a joint venture between Toyota Japan, Toyota Tsusho Corp and UMW Corp Sdn Bhd.
UMW Toyota said in a statement it would initially invest about RM100mil to start the local production.
“This project reflects the support of UMW Toyota and Toyota Japan to Malaysia’s National Automotive Policy to promote localisation.
“It is hoped that the project will benefit local vendors and contribute to the Malaysian auto industry,” it said in a statement yesterday.
UMW Toyota, which distributes Toyota vehicles in the country, said it had invested about RM290mil over the past five years to develop its manufacturing facilities.
“We will invest more than RM170mil to further develop Assembly Services over the next three years. We will enhance its quality, automation and productivity,” said UMW Toyota president Kuah Kock Heng.
Kuah said its Toyota Vios sub-compact sedan was now being assembled with 40% local content and the company planned to increase this to 50% in the next-generation model.
“For other models, we will gradually increase the local content as our vendors further developed (their capabilities) to meet the high standards,” he added.
UMW Toyota said a further investment of about RM200mil had been allocated to build a centralised stockyard in Bukit Raja, Klang.
“The facility is scheduled to begin operation by mid-2011,” it said.
fr:biz.thestar.com.my/news/story.asp?file=/2010/7/15/business/6668578&sec=business
Proton plans new loan rates
SUBANG JAYA: Proton Holdings Bhd hopes to conclude by next week talks with various financial institutions on a new interest rate package for its customers, said group managing director Datuk Syed Zainal Abidin Mohd Tahir (pic).
“We’ve been discussing with several key financial institutions over the past few weeks and we’re close to coming to an agreement with them,” he told reporters after launching a facelift version of the Exora multi-purpose vehicle (MPV) yesterday.
“We’re looking to come up with a package that not only provides a win-win situation (for both Proton and the banks) but also ensures that it does not burden the consumer.”
He said Proton was also working with second national carmaker Perusahaan Otomobil Kedua Sdn Bhd (Perodua) to “come to a compromise” with the banks on a suitable loan package for customers.
“In times like this, we (Proton and Perodua) have to be united. But I think the banks will also appreciate this. If they put a ‘brake’ on car loan approvals it would also affect the economy. This (hire-purchase loans) is also an important business for them.”
Last week, Bank Negara raised the overnight policy rate by 25 basis points to 2.75%, making it the third rate increase this year.
According to Syed Zainal, hire-purchase rates for Proton vehicles currently range between 3.85% and 4.1%, and the new rates would be higher.
On the Prime Minister’s comment that local automotive companies should consolidate to become major players in the industry, Syed Zainal said: “Proton takes serious note of his suggestion but we want to benefit the entire ecosystem, not just individuals or companies.
“By ecosystem, we want to benefit the manufacturers (both local and foreign), the vendor community, the dealer network and various support systems. But we are not going to comment on anything until a proper study is done.”
On another note, Syed Zainal said Proton aimed to launch its new Waja model by the last quarter of this year. The replacement model is expected to be a rebadged version of Mitsubishi’s Lancer.
Meanwhile, Proton expects its new (facelift) Exora to boost total MPV sales to 2,500 units per month and surpass its target of selling 28,690 units in the current financial year ending March 31. The new model is available in four specifications and priced from RM58,998 to RM76,998 (on-the-road).
Proton has to date received a total 42,916 bookings for the Exora and on average sold 2,300 units per month. From last April to June 30 this year, 32,540 units have been registered.
fr:biz.thestar.com.my/news/story.asp?file=/2010/7/16/business/6673228&sec=business
Record car sales expected this year
By EUGENE MAHALINGAM
MAA optimistic due to 19.8% rise in the first six months
PETALING JAYA: The Malaysian Automotive Association (MAA) has revised upwards its 2010 total industry volume (TIV) forecast to 570,000 units from 550,000 units initially due to the stellar sales performance in the first half of the year.
The TIV in the first half grew 19.8% to 301,077 units compared with 251,305 units in the previous corresponding period.
The revised forecast, if achieved, means the Malaysian automotive industry is headed for a record-breaking year in terms of sales, surpassing its all-time high of 552,316 units in 2005.
MAA president Datuk Aishah Ahmad said the TIV growth in the second half was unlikely to be as strong as the first six months, and that the recent fuel price hike and increase in interest rates would have a minimal impact on the TIV.
She also said the impact on the TIV would be minimal if any further increase in fuel price and interest rates was marginal.
“A further increase in interest rates is possible. If the increase is 25 basis points the impact won’t be much,” she told a briefing yesterday.
“A further increase in fuel prices may not affect the overall TIV but car buyers may downsize to cheaper vehicles.
“Our fuel prices are still the cheapest in the region.”
Earlier this month, Bank Negara raised the overnight policy rates by 25 basis points to 2.75%.
Last week, the Government announced the increase of RON95 petrol price by five sen per litre to RM1.85, while RON97 would no longer be subsidised. The diesel prices rose by five sen per litre to RM1.75.
The multiplier effects of projects from the 10th Malaysia Plan would boost the economy and create demand for new vehicles, Aishah said, adding that the positive consumer sentiment was expected to continue owing to greater stability in the employment market.
She said outstanding orders carried over from the first half would be fulfilled in the second half of 2010.
Aishah also said the MAA had been lobbying the Government to extend incentives for not only hybrid and electric vehicles, but also all types of vehicles that cater to this segment.
For the first six months of 2010, total production volume increased by 27.8% to 293,783 compared with 229,842 units in the same period last year.
Aishah said the higher production volume was to cater to the improvement in sales of motor vehicles in the period.
The MAA also reported that motor vehicle sales for June rose 19.4% to 54,005 units from 45,245 in the same month last year as business conditions and consumer sentiment continued to be positive.
It said the sales increase was also due to buyers rushing to take delivery of their vehicles before the hike in interest rates.
On the outlook for July, MAA said the year-on-year growth would continue to expand, but the month-on-month volume would be maintained as outstanding orders had already been fulfilled.
fr:biz.thestar.com.my/news/story.asp?file=/2010/7/21/business/6700110&sec=business
No need to consolidate M’sian auto industry, says Aishah
PETALING JAYA: The Malaysian Automotive Association (MAA) president has poured cold water on the need to consolidate the local automotive industry as most car companies, with the exception of Proton Holdings Bhd, are operating well above capacity.
“Proton Shah Alam (is operating at) 54% (and) Proton Tanjong Malim (at) 42%,” Datuk Aishah Ahmad told a briefing on the Malaysian automotive industry’s first half sales performance yesterday.
According to reports, Proton’s combined annual assembling capacity at its Tanjung Malim and Shah Alam plants is 350,000 units.
Aishah revealed that UMW Toyota unit Assembly Services was operating at 215% production capacity, Honda Malaysia at 202%, Tan Chong Motor at 143%, and fellow national carmaker Perodua at 164%.
“Most plants are operating at more than 100% capacity. If you are already full there’s no need to consolidate,” said Aishah.
According to recent reports, Proton group managing director Datuk Syed Zainal Abidin Mohd Tahir had said that he was supportive of the idea of consolidation if it benefited the entire automotive ecosystem in Malaysia.
Earlier this month, Prime Minister Datuk Seri Najib Tun Razak commented that local automotive companies should consolidate to become major players in the industry.
Aishah said consolidation was a decision that should be determined by the company’s shareholders.
“In our view, the shareholders must agree as they are the owners. At the end of the day, the consolidation must benefit the company.”
she said.
“I don’t think it is the Government that has to say ‘you have no choice, you have to consolidate’. At the end of the day, it is a business decision and must be a win-win situation for all.”
fr:biz.thestar.com.my/news/story.asp?file=/2010/7/21/business/6702714&sec=business
Optimism on auto sector running high
By EUGENE MAHALINGAM
Analysts follow MAA in revising upwards car sales figures for 2010
PETALING JAYA: Analysts are upbeat about the outlook of the local automotive industry for 2010, saying “the current state of the auto industry is one of optimism not seen since 2005.”
“We believe the TIV (total industry volume) will exceed our initial forecast of 546,000 units as consumer and business confidence improves,” said Kenanga Research in a report yesterday.
The research house said it was revising upwards its 2010 TIV forecast to 568,000 units from 546,000 units originally due to the commendable sales performance in the first six months of the year.
The Malaysian Automotive Association (MAA) has revised upwards its 2010 TIV forecast to 570,000 units from 550,000 units initially due to the stellar sales performance in the first half of the year.
The TIV in the first half grew 19.8% to 301,077 units compared with 251,305 units in the previous corresponding period.
However, Kenanga said that it anticipated TIV in the second half of 2010 to “normalise” as the period was expected to be “seasonally slow.”
RHB Research, in its report, said it was maintaining its 2010 TIV growth forecast of 9.5% to 587,698 units.
“We are keeping our 2010 to 2012 TIV projections. We expect TIV to grow 9.5%, 4% and 3.2% in 2010 – 2012, following a 2% contraction in 2009,” it said.
TIV for 2009 was 536,905 units.
RHB Research said it was positive on the earnings outlook for local automotive companies, namely Proton Holdings Bhd, Tan Chong Motor Holdings Bhd, UMW Holdings Bhd and MBM Resources Bhd.
It noted that UMW was looking to increase localisation of its Toyota models, in particular the Camry by 2012 as part of the company’s RM170mil assembly plant upgrading programme.
“The Camry is currently assembled in Thailand and selling for between RM144,000 and RM174,000 as a CBU (completely built-up) unit. Once locally assembled, we believe this price would be brought down by at least 5% as import duty will no longer be imposed,” it said.
The research house also said UMW was looking at increasing the local content of its Toyota Vios, which had 40% local content.
RHB Research also said it was optimistic about the launch of Proton’s Waja replacement model in the final quarter of 2010.
The vehicle is expected to be similar to the Mitsubishi Lancer and priced RM20,000 to RM40,000 cheaper than the actual Lancer.
It also said Proton could be consolidating its plants in Shah Alam and Tanjung Malim and secure contract manufacturing to optimise plant utilisation which would further improve profitability via better cost control and economies of scale.
Sales of Toyota vehicles rose to 34,943 units in the first half of 2010 versus 30,147 units previously, making it the market leader in the non-national passenger car segment.
Sales of Proton vehicles increased to 80,051 units from 67,770 units during the same period.
RHB Research said it was also positive on the outlook for Tan Chong (which distributes Nissan vehicles) and MBM Resources (which has a 20% stake in Perodua).
Perodua sold 94,936 vehicles in the first half of 2010 compared with 77,045 units previously, making it the market leader in the local passenger market.
Sales of Nissan vehicles increased to 13,406 units from 11,220 previously.
An analyst from a local bank-backed brokerage said the TIV performance in the first half of 2010 was within expectations, adding that he had revised upward his forecast to 573,000 from 561,000 initially due to the good industry performance.
He said he was positive on the outlook of the local auto industry, noting that many car companies were offering low interest rates to boost sales.
fr:biz.thestar.com.my/news/story.asp?file=/2010/7/22/business/6709333&sec=business
Mercedes-Benz sales in Malaysia rise 29%
KUALA LUMPUR: Mercedes-Benz Malaysia Sdn Bhd’s sales rose 29% to 2,417 units in the first half of 2010 from 1,869 units previously, making it the market leader in the local luxury passenger car segment.
“This has been the best half-year performance to date and our market leading position in all the three main segments, the C, E and S-Classes, is a reflection of customer confidence in our cars,” said president and chief executive officer Peter Honegg in a statement.
The company said in the same statement that stronger economic conditions had contributed positively to the automotive industry as a whole and had been one of the factors in the company’s performance.
The biggest contributor of its passenger car segment was the Mercedes-Benz C-Class, which saw an increase of 28% to 1,097 units from 857 units previously, buoyed by the introduction of C200 and CGI C250 Blue EFFICIENCY earlier this year.
Sales of the E-Class grew 44% to 988 units while the S-Class rose 10% to 158 units in the first half of the year.
Mercedes-Benz Malaysia’s commercial vehicles unit also saw encouraging sales, with its Mitsubishi FUSO selling 694 trucks for a growth of 23% during the half-year period.
fr:biz.thestar.com.my/news/story.asp?file=/2010/7/22/business/6710839&sec=business
Mercedes-Benz aims for record sales
By EUGENE MAHALINGAM
KUALA LUMPUR: Mercedes-Benz Malaysia Sdn Bhd has revised upwards its passenger car sales target to 5,000 units from 4,200 initially for 2010.
The revised forecast was in line with increasing demand for the German marque’s vehicles and improving market conditions, said vice-president of sales and marketing for passenger cars, Florian Mueller.
“We will over-rev it (the initial forecast), perhaps 5,000 plus units (this year), which would make it the highest ever (in terms of sales) for us,” he told StarBizweek in an interview.
Mueller said by offering locally assembled or completely-knocked-down (CKD) models, the company would be able to provide better value for money to its customers in light of the recent fuel price hike and increase in interest rates.
“Nearly 90% of our vehicles are CKD, which makes them 15% to 20% cheaper than CBU (completely-built-up) models.”
All of Mercedes-Benz Malaysia’s CKD vehicles are assembled in Pekan, Pahang.
Mueller also said all of the company’s four-cylinder engines were powered by charged gasoline injection (CGI)-based technology, which offered better fuel efficiency and power.
“The higher the prices of fuel, the more people will look into the fuel consumption of their cars and think about the cost over the lifespan of their vehicles.”
Mueller said the company was still considering whether to introduce six-cylinder engines with CGI-based technology.
Last week, the Government raised the RON95 petrol price by five sen per litre to RM1.85 while RON97 would no longer be subsidised. The diesel prices rose by five sen per litre to RM1.75.
Mercedes-Benz Malaysia’s sales rose 29% to 2,417 units in the first half of 2010 from 1,869 units in the previous corresponding period, making it the market leader in the local luxury passenger car segment.
The biggest contributor of its passenger car segment was the Mercedes-Benz C-Class, which saw an increase of 28% to 1,097 units from 857 previously.
Sales of the E-Class grew 44% to 988 units while the S-Class rose 10% to 158 units in the first half of the year.
Its commercial vehicles unit also saw encouraging sales, with its Mitsubishi FUSO selling 694 trucks for a growth of 23% during the half-year period.
Mueller is optimistic the sales trend in the first half year would continue into the second half.
“There are plenty of holidays in the second half of the year, which means shorter (work) months and fewer production days.
“(But) we’re doing everything we can to counter this, which means working overtime, working on weekends, doing whatever we can do to keep sales up.”
Mercedes-Benz Malaysia will be launching its new E-Class Cabriolet next week and a facelift of its R-Class later in the year. Its best selling year was 2008 when it sold 4,160 units.
fr:biz.thestar.com.my/news/story.asp?file=/2010/7/24/business/6725175&sec=business
Car sales to hold steady
By EUGENE MAHALINGAM
Perodua’s value-for-money vehicles seen maintaining lead in H2
PETALING JAYA: The sales ranking of vehicle marques in the first half of 2010, led by national makes Perodua and Proton, is expected to remain unchanged in the second half of the year, according to analysts’ forecast.
That also holds true for the non-national makes – which is led by Toyota, followed by Honda and Nissan.
“We don’t expect sales of Proton cars to exceed those of Perodua this year, as the latter has the volume (achieved in the first six months of 2010) to maintain its lead (in the local passenger car segment),” said an analyst.
He added that the lower price of Perodua vehicles, compared with Proton cars, was not a major factor why sales of Perodua vehicles were always better.
“There is the perception that Perodua cars are better in quality. So not only are they cheaper, they are also better value for money for the potential customer,” the analyst said.
Sales of passenger cars in the first half of 2010 rose 19% to 271,873 units from 228,420 in the previous corresponding period as market sentiment and consumer confidence improved.
According to statistics by the Malaysian Automotive Association, local carmaker Perodua maintained its leading position in the local passenger car segment with sales increasing 23% to 94,936 units in the first half of the year for a 34.9% share of the market.
National carmaker Proton Holdings Bhd maintained its second spot on the passenger car list with its 2010 half-year sales improving 18% to 80,051 from 67,770 units previously, with its share in the segment slipping marginally to 29.4% from 29.7% during the period.
An analyst said earnings for Proton could remain relatively flat until it launched its Waja replacement model in the final quarter of 2010.
The vehicle is expected to be similar to the Mitsubishi Lancer and priced RM20,000 to RM40,000 cheaper than the actual Lancer.
“The launch of the model should create some excitement within the local automotive industry and boost sales for Proton towards the end of its current financial year ending March 2011,” he said, adding that the good sales performance of Perodua vehicles would bode well for the earnings of MBM Resources Bhd, which has a 20% stake in the national carmaker.
“Autoparts player EP Manufacturing Bhd will also stand to benefit from higher output from both Perodua and Proton,” he said.
Another analyst said Toyota vehicles were likely to remain the top seller within the non-national passenger car segment for 2010, noting that “it’s the most popular brand in the world.”
“Apart from that, Toyota vehicles tend to provide better resale value compared with other non-national makes,” he said.
UMW Toyota Motor Sdn Bhd (a unit of UMW Holdings Bhd) maintained its leading position in the non-national passenger car segment (third in the overall passenger car segment) in the first half of 2010 with sales increasing 16% to 34,943 units from 30,147 previously.
But its market share in the segment slipped to 12.9% from 13.2% previously.
Despite the good performance, the analyst believes that earnings of UMW Holdings could be bogged down by its underperforming oil and gas division due to potential further delays in securing charter awards for its jack-up drilling rigs, NAGA 2 and NAGA 3.
Non-national makes Honda and Nissan maintained their second and third positions in the non-national passenger car segment (fourth and fifth overall, respectively).
Sales of Honda vehicles increased to 22,144 units from 20,476 previously in the first six months of the year while Nissan recorded a 19% rise to 13,406 units during the same period.
An analyst from a local bank-backed brokerage said he was optimistic about the earnings outlook for Tan Chong Motor Holdings Bhd this year, given the improved consumer sentiment and appreciation of the ringgit against foreign currencies.
He said some 40% of Tan Chong’s operating cost was denominated in foreign currency, mainly involving purchases of raw materials.
Of this, some 60% was denominated in US dollars, which is mainly for completely built-up and completely knocked-down purchases within Asean.
fr:biz.thestar.com.my/news/story.asp?file=/2010/8/3/business/6782311&sec=business
Perodua set to surpass sales target
By DAVID TAN
Car maker confident of selling 185,000 units
GEORGE TOWN: Perusahaan Otomobil Kedua Sdn Bhd (Perodua) is confident sales this year will reach 185,000, surpassing its forecast of 176,000.
Managing director Aminar Rashid Salleh said the company was confident of surpassing the targeted figure because of the sales and bookings it had achieved so far.
From January till July, the car maker had sold 111,500 units, an increase of 20.3% from 93,000 achieved in the same period last year.
“From January till July 2010, the service intakes from the whole country were 972,300, up 6.1% from 916,000 last year.
“Contribution from the northern region to national sales and service intakes was 21% and 19% respectively,” he said after launching a new Perodua outlet in Bayan Lepas.
Aminar said that in July, bookings for the MyVi model were 9,300 while bookings for Viva and Alza were 9,000 and 4,600 respectively.
“The bookings for MyVi is usually between 7,000 and 8,000 a month while that for Viva is 6,000 to 7,000,” he said.
Aminar said Perodua would open five more service and spare parts outlets in the country by the year-end.
“The five would be in Kuala Lumpur, Dungun, Limbang, Tanjung Malim and Tuaran. So far, eight service and spare parts outlets had been opened in the country this year,” he said.
The eight are in Penang (2), Sarawak (2), Negri Sembilan (1), Sabah (1), Selangor (1) and Malacca (1).
On the new limited edition MyVi launched on July 7, Aminar said Perodua had received 2,793 orders.
“The car, available in pink colour, is designed for ladies,” he said.
fr:biz.thestar.com.my/news/story.asp?file=/2010/8/10/business/6825250&sec=business
Daihatsu sees RM1b revenue
SHAH ALAM: Daihatsu (M) Sdn Bhd expects sales to exceed RM1bil by 2011.
This will be achieved by offering a full range of vehicles from light commercial and pick-ups to medium-range and heavy commercial vehicles as well as buses.
Managing director Belinda H.E. Lim said the company would pump in RM20mil to drive its sales, service and spare parts (3S) business.
The money would go towards the acquisition of land, construction of dedicated 3S centres and upgrading of some of its existing sales and service facilities, she said at a briefing yesterday.
Daihatsu Malaysia has appointed Hino Motors (M) Sdn Bhd as its 3S dealer for six outlets in Shah Alam, Ipoh, Butterworth, Batu Pahat, Johor Bharu and Kota Kinabalu.
“Both Daihatsu and Hino are members of the Toyota Group in Japan. By adding Hino products to Daihatsu Malaysia stable, we are extending our variety and reach to customers,” Lim said.
While the sale of commercial pick-up vehicles will be led by the Daihatsu brand, Daihatsu Malaysia’s light, medium-range and heavy commercial segment will be spearheaded by the Hino range which now consist of some 29 models and variants.
The vehicles include buses, tankers, car carriers, general cargo trucks, tow trucks and prime movers.
Daihatsu Malaysia also announced that it would re-enter the country’s van market with the launch of a model at the Kuala Lumpur International Motor Show in December.
The company expects to sell about 80 units of the van every month
fr:biz.thestar.com.my/news/story.asp?file=/2010/8/10/business/6826890&sec=business
Suzuki Malaysia introduces new sub-compact model
PETALING JAYA: Suzuki Malaysia Automobile Sdn Bhd, the local distributor of Suzuki models which is 40% owned by DRB-Hicom Bhd, is introducing the Alto 1.0L, a new completely built-up (CBU) sub-compact model to the local market.
Suzuki Malaysia chairman Datuk Seri Mohd Khamil Jamil said in a press release yesterday that there was growth potential for the non-national brands in the sub-compact model category with a gradual surge of interest by consumers for a nimble and nifty urban drive distinct in looks as well as practical.
Available in automatic and manual versions with an European-inspired look, the model is priced at RM44,888 for manual (GA), RM49,999 for automatic (GLX) and RM54,888 for automatic (GXS).
Mohd Khamil said Suzuki Malaysia saw growth of 13% for the financial year ended March 31, 2010 (FY09/10) with total registered volume of 5,588 units.
He added that the company was aiming for a better performance with the introduction of the new sub-compact and on the back of promising market response to the locally-assembled Suzuki Swift 1.5L and three other CBU models.
“We’re targeting to achieve an average of 150 units a month and subsequently a total of 1,200 units by the end of FY10/11,” Khamil said.
fr:biz.thestar.com.my/news/story.asp?file=/2010/8/10/business/6828066&sec=business
Motor vehicle sales for July increase by 3%
PETALING JAYA: Motor vehicle sales for July rose 3% to 53,482 units from 51,967 in the same month last year due to fulfilment of back orders carried over from the previous month and countermeasures taken by car companies to negate the impact of the increase in hire purchase interest rates, said the Malaysian Automotive Association (MAA). As a result, year-to-date sales were up to 354,559 units from 303,272 units in the previous corresponding period, it said in a statement yesterday.
“However, on a year-to-date basis the growth over the same period declined from 20% up to June 2010 to 17% up to July 2010,” the MAA said.
Sales of passenger cars in July rose to 48,143 units from 47,165 in the corresponding month last year while that of commercial vehicles increased to 5,339 units from 4,802.
MAA said sales volume for August was expected to be slightly better than July 2010 due to a rush for deliveries in conjunction with the Hari Raya season, which would be supported by higher production.
Total production last month increased to 58,004 units from 47,073 a year earlier while year-to-date production rose to 351,787 units from 276,915 previously.
Of the total vehicles produced in July, passenger vehicles totalled 53,629 units while the remaining 4,375 were commercial vehicles.
fr:biz.thestar.com.my/news/story.asp?file=/2010/8/14/business/6856103&sec=business
Used-car sales in M’sia seen to rise to 600,000 this year
By DAVID TAN
GEORGE TOWN: Used-car sales in the country is expected to hit about 600,000 this year from 480,000 in 2009, according to the Federation of Motor and Credit Companies Association of Malaysia (FMCCAM).
President Datuk Tony Khor said that for the past six months, more than 300,000 used cars had been sold. “The sale (of used cars) for the third quarter is very likely to hit about 150,000 barring unforeseen circumstances. We also expect fourth quarter sales of used cars to be around 150,000,” he told StarBiz.
Khor said FMCCAM could only give rough estimates of used car sales in the country due to the lack of a proper system to monitor the transactions of used cars.
“We urge the Government to allow the used car industry to implement the e-transfer system. The cost to implement such a system is about RM40mil, which will be borne by FMCCAM,” he said, adding that over 5,000 used car dealers would benefit from the implementation.
Khor said that the e-transfer system, which would be linked to the Road Transport Department (JPJ), would be able to monitor and accurately record the sales of used cars in the country on a daily basis.
He said the e-transfer system would also allow the registration of new ownership for used cars to be effected immediately. “Presently, the registration of new ownership for used cars is done manually at the JPJ. Since the registration of new ownership is not done right away, unscrupulous used car dealers can abuse the present system to commit fraud,” Khor said.
fr:biz.thestar.com.my/news/story.asp?file=/2010/8/16/business/6826997&sec=business
DRB-Hicom gains on Volkswagen car-making deal
KUALA LUMPUR: DRB-HICOM Bhd, the Malaysian partner of Daimler AG’s Mercedes-Benz and Honda Motor Co, jumped the most in more than four months after reaching a preliminary agreement to make cars with Volkswagen AG.
The automaker climbed as much as 9.4% in Kuala Lumpur trading, the biggest intraday increase since March 26, closing at RM1.14.
Proton Holdings Bhd, Malaysia’s state-controlled carmaker, fell as much as 2.2% in early trading but regained ground to close flat at RM4.60.
Volkswagen ended talks on a tie-up with Proton in June.
DRB-HICOM and Wolfsburg, Germany-based Volkswagen will study plans to open a manufacturing plant in Malaysia in 2012, as economic growth spurs car sales in the South-East Asian nation, VW said on its website.
Industrywide auto sales climbed 17% in the first seven months of the year, according to the Malaysian Automotive Association.
Volkswagen and DRB-HICOM will build three car models at a factory in Pekan, the Bernama news service said on Aug 15, citing Malaysian Prime Minister Najib Razak.
The government will study a request from Volkswagen for incentives to turn the plant into a regional export hub, the report said.
DRB-HICOM operates eight assembly plants, according to its website. It builds Mercedes, Honda, Isuzu Motors Ltd and Suzuki Motor Corp vehicles, as well Honda, Suzuki and Yamaha Motor Co motorcycles.
fr:biz.thestar.com.my/news/story.asp?file=/2010/8/17/business/6866954&sec=business
UMW Q2 net profit almost triples as car sales soar
PETALING JAYA: Strong motor vehicle sales boosted UMW Holdings Bhd’s net profit in the second quarter ended June 30 to RM211.7mil from RM79.4mil achieved a year ago.
Revenue soared to RM3.28bil against RM2.58bil previously. This is probably the group’s best quarterly performance.
“The board is confident that the financial performance of the group is likely to exceed its internal revenue and profit targets set for the financial year ending Dec 31, 2010,” UMW told Bursa Malaysia yesterday.
Consensus estimate put its full-year net profit at around RM542mil, or 48 sen per share. The group’s cumulative six-month net earnings had already reached RM344mil, or 30.5 sen a share.
UMW has proposed an interim dividend of 10 sen per share for the quarter.
Perodua and Toyota sales made up 47.7% of the total industry volume of 301,077 units in the six months ended June 30.
The group now expects sales at Perodua to reach 185,000 units for the whole year, higher than the previous forecast of 176,000 units. Sales of Toyota vehicles would probably exceed the original target of 88,00 units.
UMW said the strong recovery also boosted demand at its automotive parts manufacturing units. The strengthening ringgit against the US dollar is also positive for UMW.
However, the performance of the group’s oil and gas division continued to be hampered by weak demand.
In a separate statement, UMW announced the appointment of Datuk Syed Hisham Syed Wazir to take over as president and chief operating officer from outgoing Datuk Abdul Halim Harun who will retire on Sept 30.
Syed Hisham, whose appointment is effective Oct 1, was chief operating officer at Naza Kia Sdn Bhd and a former managing director at Edaran Otomobil Nasional Bhd.
Halim, who was made a director in 1990, has held the posts since 2001. He will remain as adviser until Nov 15
fr:biz.thestar.com.my/news/story.asp?file=/2010/8/21/business/6895835&sec=business
Proton Q1 earnings up 55% on higher sales volume
SHAH ALAM: Proton Holdings Bhd posted a 55% higher net profit of RM84.7mil for the first quarter ended June 30 from RM54.56mil it gained a year ago due to higher sales volume and improved profit margins from better product mix.
It told Bursa Malaysia yesterday that revenue grew 24% to RM2.3bil for the period against RM1.85bil in the previous corresponding period while earnings per share was 15.4 sen versus 9.9 sen a year ago.
Meanwhile, at a media briefing yesterday to announce the group’s first quarter results, group managing director Datuk Syed Zainal Abidin Syed Mohamed Tahir said Proton’s domestic sales grew 17% over the last three months compared with the corresponding period in 2009.
“The growth is largely attributed to a better range of products and the increasing demand for three core models – the Saga, Persona and Exora,” he said.
Factors that contributed to the improved performance included the ability to take advantage of good market conditions, operational efficiency, delivering what the customers wanted and shorter turn-around time for introduction of new models and variants.
He also cited ongoing efforts to rationalise the network of dealers and suppliers and vehicles that were of higher quality.
For the quarter under review, Proton saw a 40% growth in revenue from the service and spare parts business compared with the previous corresponding period.
The company aims to step up its marketing campaigns to increase sales.
In the pipeline are replacements for its Waja and Persona models, introduction of a new small car and a hybrid car.
Proton wants to focus on completely-knocked-down operations and expand its overseas operation, especially in Iran and India.
It currently earns RM300mil in revenue from exports.
Moving forward, Syed Zainal remained optimistic of Proton car sales continuing its upward trend.
“The increasing purchasing trend for more fuel efficient vehicles augurs well for Proton’s current and the future range of models planned for the rest of the year.
“They will not only extend good fuel economy and low cost of ownership, but at the same time are practical, reliable and stylish,” he said.
On the proposed consolidation of Proton and Perodua, he said the move could benefit the industry and the group would continue to engage with the Government on the matter.
fr:biz.thestar.com.my/news/story.asp?file=/2010/8/24/business/6904529&sec=business
AmBank aims to give out RM500m car loans in 2010
KUALA LUMPUR: AmBank (M) Bhd aims to disburse about RM500mil car loans this year, a 2% growth of its total hire-purchase receivables of about RM24bil.
Managing director (retail banking) Datuk Mohamed Azmi Mahmood said although it was 2%, it was a big amount because “we have a big base of RM24bil.”
As Malaysia’s No. 1 car financier, AmBank had about 20% share of the car loan market currently, he told reporters on the sidelines of the AmBank-Kuala Lumpur International Motor Show 2010 (KLIMS ‘10) signing ceremony.
Asked how the bank proposed to sustain its market share, Mohamed Azmi said: “We will continue to do better things, faster service and offering better products.
“AmBank has always been strong in car financing and still is. Of the 10 cars financed out there, two are financed by AmBank.”
On AmBank’s participation in KLIMS ‘10, Mohamed Azmi said it was a valuable platform for the group to showcase its products and services as most of the expected visitors fit its target profile. “The visitors consist of urban professionals and top-level senior executives. About 95% of them are car owners,” he said.
Organised by the Malaysian Automotive Association (MAA), KLIMS ‘10 will play host to major carmakers and distributors, concept cars, supercars, car accessories, car-care products and performance parts, all under one roof.
Scheduled to be held from Dec 3 to 12, Ambank will be the official bank for the event, which is expected to attract more than 330,000 visitors.
“The automotive industry is looking buoyant and positive since the first half of this year.
“The 10th Malaysia Plan and New Economic Model elements seem to be working their magic. The floor spaces are currently being snapped up and more brands are coming to participate this year,” MAA president Datuk Aishah Ahmad said, adding that national carmaker Proton would be the largest exhibitor this year
fr:biz.thestar.com.my/news/story.asp?file=/2010/8/25/business/6914480&sec=business
Maybank to drive car loans growth
SHAH ALAM: Malayan Banking Bhd (Maybank) expects to take pole position in terms of market share for motor vehicle loans within the next three years.
Consumer finance head Ashraf Ali Kadir said currently the bank’s share was about 18% behind AmBank.
“We were in the fourth position four years ago with only 14% market share. The potential is still there,” he told reporters after the launch of the New Straits Times-Maybank Car of the Year 2010 Award yesterday.
For the current financial year ending June 30, 2011, Maybank is looking at a 12% growth for its car loans, he said.
fr:biz.thestar.com.my/news/story.asp?file=/2010/8/26/business/6923079&sec=business
Vehicle sales unlikely to be revised downward
By FINTAN NG
PETALING JAYA: Despite a slower pace of economic growth in the second half-year, sales of vehicles are unlikely to fall although it will not be as good as in the first half.
Analysts who spoke to StarBizWeek said they were unlikely to revise their sales figures downward for the year.
“My estimates are already quite conservative,” AmResearch Sdn Bhd analyst Hafriz Hezry said.
Malaysian Automotive Association president Datuk Aishah Ahmad said a month ago that total industry volume for the year could well be above 570,000 units compared with 536,905 units last year and all-time high of 552,316 in 2005.
Bank Negara governor Tan Sri Dr Zeti Akhtar Aziz said in mid-August that there was a “good deal of uncertainty on the horizon” with the country’s economic growth moderating although not to levels that would be worrying.
Hafriz said it was not entirely inconceivable that auto sales would be slower since hire-purchase rates were higher following three rate hikes in benchmark interest rates and a cut in petrol subsidy this year.
“There’ll be some impact although it will not be very much,” he said, adding that sales would hinge on new models coming into the market by the year-end, underlying demand and a shift in market share.
“Underlying demand was strongest in the first half but this is tapering off,” Hafriz said.
He said sales would likely be supported by the new Myvi model, which would be launched towards the end of the year.
Affin Securities Sdn Bhd analyst Chong Lee Len said sales for the first seven months of 2010 were quite strong compared with last year, rising about 20% year-on-year.
“I’m not likely to revise my sales figures downward as I’ve factored in the slower economic growth,” she added.
Chong said that for 2011, vehicle sales would likely grow 3% to 4% compared with this year. “This is a comfortable rate for a matured market like Malaysia,” she said.
fr:biz.thestar.com.my/news/story.asp?file=/2010/8/28/business/6935908&sec=business
Hari Raya boost for vehicle sales in August
By EUGENE MAHALINGAM
Orders likely to be higher than July’s, say car companies
PETALING JAYA: Local automotive companies are optimistic that vehicle sales in August would be boosted by the Hari Raya holidays next week.
Perusahaan Otomobil Kedua Sdn Bhd (Perodua) managing director Aminar Rashid Salleh said he expected sales for August to be better or at least match its July 2010 sales of 16,500 units.
“July was a good month for us in terms of sales and bookings, as many customers wanted their cars delivered before Hari Raya. Many customers also pre-booked their vehicles last month to continue to enjoy the old interest rates,” he told StarBiz in an e-mail.
Honda Malaysia Sdn Bhd managing director and chief executive officer Toru Takahashi said as August was a pre-Hari Raya/Ramadan period, he expected sales to match those of July, where the company recorded its highest monthly sales of 4,586 units.
The Malaysian Automotive Association will announce total vehicle sales for August later this month. In a statement last month, it said sales volume for August was expected to be slightly better than July due to a rush for deliveries in conjunction with the festive season, which would be supported by higher production.
Motor vehicle sales for July rose 3% to 53,482 units versus 51,967 units in the same month last year.
None of the players said vehicle sales in August would be affected by the Hungry Ghost festival, a period businesses are known to experience a slight slowdown.
“During the Hungry Ghost month, which is usually around August, people – especially the Chinese – don’t buy cars,” said an industry observer. “People see the month as a time to mourn rather than to rejoice so they stave off purchasing big-ticket items such as cars or houses. Many also do not get married during the auspicious month.”
“The Hungry Ghost festival will have a minimal impact on vehicle sales for August,” Edaran Tan Chong Motor Sdn Bhd executive director Datuk Dr Ang Bon Beng said.
“We forecast August sales to be higher than July in view of pre-Hari Raya purchase.”
He added that sales during the pre-Hari Raya month, just like the the pre-Chinese New Year month, was traditionally “quite strong.”
Aminar Rashid Salleh also said he did not expect Perodua’s sales to be affected by the Hungry Ghost belief.
“The feedback from our sales outlets are that most of our Chinese customers have not put off their decision to purchase a vehicle during the Hungry Ghost festival. There may be a few isolated cases but generally our sales were not affected by this factor,” he said.
fr:biz.thestar.com.my/news/story.asp?file=/2010/9/2/business/6964266&sec=business