Auto TIV to grow 2%, production to rise 4% this year

KUALA LUMPUR: The total industry volume (TIV) for the Malaysian automotive sector is projected to grow by 2% this year to between 586,000 and 591,000 units, said the Ministry of International Trade and Industry (MITI).

Total production volume (TPV), which provides a holistic reflection of the vehicles produced locally for both domestic consumption and exports, is expected to increase 4% this year to between 530,000 and 535,000 units.

MITI Minister, Datuk Seri Mustapa Mohamed, disclosed these numbers in an update on the 2017 Automotive Industry and 2018 Outlook briefing here today.

He said the local automotive industry had committed to RM3.99bil in investments from this year until 2022, in addition to the RM7.6bil realised from 2014-2017.

The automotive sector is expected to contribute 4.5 % to Malaysia’s gross domestic product growth, compared to four % last year.  Energy efficient vehicle (EEV) penetration in the country is expected to increase for the fifth consecutive year, reaching 60 % of vehicles sold.

Last year’s EEV penetration was at 52%, which  surpassed the 50% penetration target set by the government.  EEV production increased from 247,912 units in 2016 to 308,807 units in 2017.

“This continuous growth signals growing awareness for EEVs within the Malaysian automotive sphere.  “The acceptance and awareness of energy efficiency is not a function for a single ministry, but highlights the support and participation of all government institutions, automotive original equipment manufacturers and vendors, as well as the public at large,” said Mustapa.

The minister said exports of automotive parts and components are expected to increase to RM12.5bil in 2018 , compared to 2017’s estimated RM12bil and RM11.2bil in 2016.  

He added that exports of remanufactured parts and components have been forecast to reach RM800mil this year. The segment jumped to RM516.4mil as at November 2017, surpassing the RM510mil mark set in December 2016.

Vehicle exports are expected to reach 34,000 units for 2018 compared to last year’s target of 31,000 units, said MITI. In 2016, vehicles exports was 33,438 units worth RM1.05bil.

Last year, localisation activities in the automotive industry were valued at RM43.67bil, with RM15bil committed by the industry from 2018 to 2022.

Mustapa said the National Automotive Policy 2018 review is expected to be announced in the middle of this year, with the government turning its attention towards non-EEV trending developments such as intelligent mobility, transport systems, vehicle security and green cars technology.

The automotive sector created 27,125 new jobs last year, a 4.93% increase from the 25,850 recorded in 2016, with 31% created being for skilled and highly skilled employment comprising technicians, executives, engineers and designers.  

“This signifies the increasing perception that the automotive industry is a sector of choice for school leavers and graduates, with 29,641 new jobs expected to be created in 2018.

“The growth of the automotive industry has created new career opportunities for Malaysians. Certified human capital programmes have been developed by the Malaysia Automotive Institute (MAI) since 2014, allowing for faster penetration of skills into the industry.

“These programmes also address the key issue of replacing foreign workers among industry players,” said Mustafa.

Meanwhile, the Malaysia Autoshow 2018 organised by MAI, will be held from April 26-29 at the Malaysia Agro Expo Park Serdang.

MAI Chief Executive Officer, Datuk Madani Sahari said the autoshow, themed, “360° Mobility Experience”, will feature a deeper experiential immersion for visitors in the areas of intelligent mobility and transportation systems.  - Bernama
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