Sales of new vehicles in Malaysia are expected to fall, according to the Malaysian Automotive Association. The prediction reverses an original estimate for growth as rising inflation, poor used car prices and a weak loan market take effect.
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According to Reuters, MMA forecasts now suggest some 520,000 units will be sold in 2006, 6% below last year’s sales. In January the MAA had said the market would grow 2.5% in 2006.
The MAA blamed rising inflation, higher fuel prices, tighter loan approvals, slowing economic growth and cautious sentiment for the fall.
“We were not sure of the actual scenario in January,” Aishah Ahmad, the president of the association, told Reuters. “The industry is not strong right now, but the lower sales are not unique to Malaysia but to all countries in ASEAN, which, with the exception of Singapore, all recorded negative sales in the period.”
In the first half of 2006, 248,407 new vehicles were sold in Malaysia, a fall of 5% on the same period last year.
The MAA also said Perodua, Malaysia’s second, smaller national car maker, outsold Proton for the first time since the larger firm’s inception.
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