KUALA LUMPUR: The total industry volume (TIV) for the automotive industry is expected to grow 2.3% to 590,000 units in 2018 from 576,635 last year, in line with the nation's higher projected economic growth of five to 5.5%.
Malaysian Automotive Association (MAA) president Datuk Aishah Ahmad said this was supported by global growth, which is expected to increase from 3.6% in 2017 to 3.9% this year based on the International Monetary Fund's forecast.
“However, the continuation of strict lending guidelines for hire purchase loans by financial institutions will remain one of the biggest challenges for the industry moving forward,” she told a press conference on the industry's market review for 2017 and outlook for 2018 here yesterday.
Passenger vehicles TIV is expected to grow 2.3% from 514,679 units last year to 526,500 in 2018, while commercial vehicles would see a rise of 2.5% to 63,500 this year from 61,956 units in 2017.
Aishah said the local automotive market remained subdued in 2017 despite the economy's recovery and aggressive promotional campaigns undertaken by MAA members.
“TIV contracted for the second consecutive year, down 0.6 per cent from 580,085 units in 2016, reflecting a down-cycle of the market which started in 2016.
“Sales remained flat in 2017, contributing to inflationary pressures affecting disposable income resulting in cautious consumer spending,” she said. — Bernama