KUALA LUMPUR, July 5 (Bernama) -- Frost & Sullivan is maintaining Malaysia's total vehicle sales forecast of 612,000 units this year despite the stricter Bank Negara Malaysia lending guidelines.
Its partner and head of the automotive and transportation practice, Asia-Pacific, Kavan Mukhtyar, said the stricter lending rules mostly impacted entry-level vehicles such as Perodua Viva and Proton Saga.
"However, the impact is expected to be reduced as carmakers step up marketing and sales campaigns such as giving higher discounts and implementing pre-screening approval process for hire-purchase loans to entice consumers," he said in a statement today.
Mukhtyar said the D-segment (premium and large sedans) would be the fastest growing segment, increasing by 30 per cent year-on-year to 36,058 units this year, driven by catch-up sales from the new Toyota Camry and Honda Accord, new variant launches and high demand for luxury cars such as BMW and Mercedes Benz.
He said the C-segment (mid-sized sedans) was likely to grow by five per cent year-on-year to 234,482 units this year, making it the largest contributor to the total vehicle sales in the country, accounting for about 38.3 per cent.
Hybrid cars would continue to be in demand due to attractive incentives given by the government and the coming review of the National Automotive Policy that was expected to provide more incentives for these cars, he said.
Mukhtyar said sales for sports utility vehicles and 4x4 vehicles were likely to grow by 11 per cent year-on-year to 25,699 units due to back orders and recovery sales from Honda CRV and growth in Kia Sportage and new model such as Mazda CX-5.
He said the B-segment (small and compact cars) was likely to see a nominal growth of 0.3 per cent year-on-year to 98,792 units this year while the A-segment (mini compact cars) would see a dip by 12 per cent year-on-year to 57,376 units, mainly impacted by the stricter lending guidelines and lack of new models.
"Most consumers are likely to opt for B-segment vehicles especially entry-level cars such as Perodua Myvi due to the narrow price gap," he said.
On commercial vehicle segment, sales of pick-up trucks were expected to increase six per cent year-on-year to 46,478 units, mainly driven by robust sales from market leader Toyota Hilux and supported by new entrant models such as Chevrolet Colorado and the new Ford Ranger, he said.
He said sales of the trucks, however, were likely to decline five per cent year-on-year to 15,000 units this year due to a lack of new models.
Sales of other commercial vehicles such as buses, vans and prime movers were expected to grow two per cent year-on-year to 10,876 units, supported by the new panel van Nissan NV200 Vanette as well as growth from Daihatsu Gran Max and Nissan Urvan, he said.