After announcing a new total industry record volume (TIV) of 720,658 units in 2022the Malaysian Automotive Association opted to be bearish with its 2023 forecast. In a press conference today, the association said it expects this year’s TIV to hit 650,000 units, which is 70,568 units or 9.8% less than on record for 2022 .
Breaking down TIVs into passenger cars and commercial vehicles, the association’s forecast places the former at 585,000 units this year, representing a decrease of 56,773 units or 8.8%. Naturally, the same is true of commercial vehicles, whose sales are expected to decline by 13,885 units or 17.6% to 65,000 units in 2023.
The associate cited a few reasons for his forecast, including an expected drop in global economic growth this year. He said that the International Monetary Fund (IMF) had projected that global economic growth would slow from 3.2% in 2022 to 2.7% in 2023, raising concerns about a recession, although the Malaysian economy is expected to slow down. expand by 4-5%.
Also, auto companies are still rushing to deliver backorders exempt from sales tax before the registration deadline of March 31, 2023. This, the association said, could boost sales in the passenger car category in the first quarter of 2023. However, it hopes the introduction of new models, including electric vehicles (EVs), will help attract and sustain interest. purchase among consumers.
However, there are still hurdles, including ongoing supply chain issues being experienced by automakers, as well as a potential resurgence of Covid-19 cases around the world that may severely affect the country. This is not helped by the fact that Bank Negara Malaysia raised its Overnight Policy Rate (OPR) several times last year to current 2.75%which could affect consumer confidence and their ability to obtain auto loans.
