Browse the complete Report on: Malaysia Autos Report Q4 2010
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New vehicle sales in Malaysia rose 20% in H110, which even when factoring in a slowdown in H2 due to base effects in the earlier months, puts the market on track to surpass BMI's original forecast of 544,000 units. Taking into account our Country Risk team's view that private consumption will be driven by solid economic growth (4.9% in 2010), we have revised our total vehicle sales forecast up to 571,470 units, a rise of 6.4% year-on-year (y-o-y). Total sales in H110 reached 301,077 units, boosted largely by growth in the commercial vehicle segment, which grew 27% to 29,204 units from 22,885 in H109. The passenger car segment remains the backbone of the Malaysian auto sector, however, with sales rising 19% to 271,873 units from 228,420 units in H109.
In line with BMI's view on government intervention in the auto sector, the Malaysian Ministry of International Trade and Industry (MITI) has opened a dedicated division to oversee the development of the domestic industry, as it looks to compete with other major ASEAN states. The Malaysia Automotive Institute (MAI) will be given a more defined brief under the 10th Malaysia Plan, but will broadly focus on devising industry policy and coordinating research and development. According to Deputy Minister of International Trade and Industry Jacob Dungau Sagan, the MAI was created from recommendations laid out in the Third Industrial Master Plan 2006-2020. BMI believes the government is aware that the industry needs focussed attention if it is to compete with its regional neighbours, particularly Indonesia, which is comparable in size but has previously been more open in its policies towards international involvement in the industry.
Nevertheless, BMI identifies a push from European companies to target what is one of the larger markets in South East Asia. Peugeot plans to produce its T33 low-cost model locally, bypassing import tariffs to significantly reduce the cost. Local dealer Nasim also plans to add more service centres to its network and reduce the cost of its spare parts. According to Nasim's director, Samson George, much of this strategy is directed at a perception that European cars are both expensive to buy and maintain. The catalyst for this activity among European brands is a potential FTA between Malaysia and the EU, which is currently under negotiation after talks surrounding an agreement between the EU and the collective ASEAN states were dropped.
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Original Source: Malaysia Auto Market
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New vehicle sales in Malaysia rose 20% in H110, which even when factoring in a slowdown in H2 due to base effects in the earlier months, puts the market on track to surpass BMI's original forecast of 544,000 units. Taking into account our Country Risk team's view that private consumption will be driven by solid economic growth (4.9% in 2010), we have revised our total vehicle sales forecast up to 571,470 units, a rise of 6.4% year-on-year (y-o-y). Total sales in H110 reached 301,077 units, boosted largely by growth in the commercial vehicle segment, which grew 27% to 29,204 units from 22,885 in H109. The passenger car segment remains the backbone of the Malaysian auto sector, however, with sales rising 19% to 271,873 units from 228,420 units in H109.
In line with BMI's view on government intervention in the auto sector, the Malaysian Ministry of International Trade and Industry (MITI) has opened a dedicated division to oversee the development of the domestic industry, as it looks to compete with other major ASEAN states. The Malaysia Automotive Institute (MAI) will be given a more defined brief under the 10th Malaysia Plan, but will broadly focus on devising industry policy and coordinating research and development. According to Deputy Minister of International Trade and Industry Jacob Dungau Sagan, the MAI was created from recommendations laid out in the Third Industrial Master Plan 2006-2020. BMI believes the government is aware that the industry needs focussed attention if it is to compete with its regional neighbours, particularly Indonesia, which is comparable in size but has previously been more open in its policies towards international involvement in the industry.
Nevertheless, BMI identifies a push from European companies to target what is one of the larger markets in South East Asia. Peugeot plans to produce its T33 low-cost model locally, bypassing import tariffs to significantly reduce the cost. Local dealer Nasim also plans to add more service centres to its network and reduce the cost of its spare parts. According to Nasim's director, Samson George, much of this strategy is directed at a perception that European cars are both expensive to buy and maintain. The catalyst for this activity among European brands is a potential FTA between Malaysia and the EU, which is currently under negotiation after talks surrounding an agreement between the EU and the collective ASEAN states were dropped.
About Us
ReportsandReports comprises an online library of 10,000 reports, in-depth market research studies of over 5000 micro markets, and 25 industry specific websites. Our client list boasts almost all well-known publishers of such reports across the globe. We as a third-party reseller of market research reports employ a number of marketing tools, such as press releases, email-marketing and effective search-engine optimization techniques to drive revenues for our clients. We also provide 24/7 online and offline support service to our customers.
Contact:
Ms. Sunita
7557 Rambler road,
Suite 727, Dallas, TX 75231
Tel: +1-888-989-8004
http://reportsandreports.blogspot.com/
http://reportsandreports.proarticles.co.uk/
http://reportsnreports.wordpress.com/
Original Source: Malaysia Auto Market
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