PETALING JAYA: Whereas expectations are that automotive firms will file bleak gross sales for June, observers say this may occasionally lengthen into July as as non-essential companies corresponding to automobile showrooms and automobile manufacturing services keep closed below an prolonged section one of many Nationwide Restoration Plan (NRP).
The state of affairs has been exacerbated by the worldwide chip scarcity, which is affecting the manufacturing capacities of worldwide automobile firms.
An analyst with an area bank-backed brokerage stated many automobile firms may register no gross sales for June and July.
“With showrooms not being allowed to open and most authorities businesses both closed or working with minimal workers, gross sales for the month can be drastically affected.”
Nonetheless, pent-up demand in addition to the continued gross sales tax vacation will enhance automobile gross sales as soon as the motion restrictions are lifted.
“It would rely on our nationwide immunisation programme and the way shortly we will decrease the variety of every day Covid-19 infections.”
Kenanga Analysis, in a latest report, anticipated June to file no gross sales from the closure of all of the showrooms and automobile manufacturing below the NRP section one interval.“Nevertheless, some models may be registered via the Street Transport Division’s e-registration system for automobile purchases.
“These are models the place loans have already been authorized with an issued letter of enterprise and the completion of the registration was to make sure no lapse within the settlement.”
The analysis home is sustaining its whole business quantity (TIV) goal of 545, 000 models for this yr.
“Our TIV development can be pushed by the extension of the automobile gross sales tax exemption till end-2021, regardless of a hiccup in gross sales from the closure of showrooms and automobile manufacturing halt which can be offset by the ample provide for newer fashions that garner higher margins.
“We nonetheless imagine the brand new volume-driven launches may assist spur gross sales together with the overflowing back-logged bookings, additional boosted by the gross sales tax exemption and seasonal promotions.”
An area information report stated the native automotive business may lose RM3.44bil in June alone.
In the meantime, one other analyst cautioned that the worldwide chip scarcity, if extended, may see native automobile firms delaying the manufacturing of some fashions.
“This might see the supply of the automobile fashions being doubtlessly delayed.
“As soon as the restrictions are lifted, we anticipate pent-up demand that can absolutely drive gross sales, particularly with the gross sales tax exemption in place. Automotive firms are going to have a tricky time maintaining with demand, ” he stated.
Final week, Malaysian Automotive Affiliation president Datuk Aishah Ahmad instructed StarBiz that the worldwide chip scarcity has impacted deliveries from abroad and native chip suppliers, resulting in a backlog on deliveries by three to 4 months.
“Relying on the share enhance in rising materials prices, if the native automotive authentic gear producers can not take up the prices, they could must go them to potential patrons, ” she stated.
In the meantime, Federation of Motor and Credit score Corporations Affiliation of Malaysia president Datuk Tony Khor stated the worsening world chip scarcity state of affairs may even have an eventual impression on the used automobile phase.
“Till you obtain your model new automobile, you received’t have the ability to commerce in your used one, ” he stated.
Nonetheless, Khor stated the gross sales of used vehicles have been sturdy from January to Could this yr.
“For the primary 5 months of this yr, there have been 347, 000 transactions involving used vehicles, which is 20% increased in contrast with the identical interval final yr.”
Khor stated the motion management order (MCO) has had a extreme impression on used automobile gross sales for June.
“For June, we’re estimating a 70% drop, in contrast with Could. Nevertheless, for the primary half of this yr, we’re nonetheless in optimistic territory as a result of gross sales within the first 5 months have been sturdy, ” he stated.
Khor is optimistic that the used automobile gross sales pattern seen within the first 5 months of the yr will proceed as soon as the MCO is lifted.
He added that the financial uncertainty created by the Covid-19 pandemic had additionally spurred used automobile gross sales.
“The pandemic has deterred individuals from utilizing public transport. As a substitute, they really feel safer to journey in their very own vehicles.
“The uncertainty has additionally led individuals to purchase used vehicles in contrast with new ones, as a result of they’re cheaper, ” Khor stated, including that banks have additionally been supportive when it got here to approving loans.
Below the automobile tax exemption, locally-assembled vehicles are exempted from gross sales tax whereas for imported vehicles, the gross sales tax has been lowered from 10% to five%.
The Covid-19 pandemic noticed a surge in demand for private digital objects corresponding to cell telephones and laptops, which finally led to a scarcity of chips worldwide as manufacturing couldn’t sustain with demand.
Some vehicles want greater than 3, 000 chips per automobile. Even when one of many chips is unavailable, the manufacturing of that automobile can’t be accomplished.