KUALA LUMPUR: There is a glut of 250,000 cars in the Malaysian market with no buyers, said Edaran Automobile Nasional Dealers Association of Malaysia (Edam) president Datuk Ismail Din.
This, he said, was making it difficult for national car dealers to remain in the business.
The figure includes new and used cars of all makes.
He said it was a norm to have at least 550,000 cars for sale in the market but studies showed there were now 800,000 cars for sale in the market.
“We believe this is caused by the credit tightening measures imposed by finance companies, the new National Automotive Policy and a slump in the car market industry.
“The situation is getting from bad to worse. By the end of this year, at least 40% of our 112 members will be forced to close shop as they are unable to make ends meet,” Ismail said in his speech at the association’s annual general meeting held at a hotel here yesterday.
The meeting was opened by Gagasan Badan Ekonomi Melayu (Gabem) chairman Tan Sri Abdul Rahim Tamby Chik.
Ismail suggested that the Government intervene to take the necessary measures to help alleviate the problems faced by dealers.
He said one way would be to re-consolidate Proton Edar and EON into one entity to stop the “unhealthy competition” and face the challenges ahead like how it was done before.
Proton managing director Syed Hisham Syed Wazir, in his speech, said there were several measures taken by the company to solve problems faced by dealers.
“We are also considering the suggestion by the association (to re-consolidate Proton Edar and EON) but it will be subject to approval from the Government and the board of directors.
“The other suggestion was to find ways to export reconditioned Proton cars to Third World countries and even this is still in the discussion stages,” he said.
Syed Hisham assured the dealers that things would get better by the end of the year.
Abdul Rahim said in his speech that Gabem was aware of the problems faced by the dealers and urged the association to provide a working paper on how to turn the situation around.